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Cow milk production decreases in Turkey

Turkey’s statistical authority said on Monday that, in November, Turkey collected almost 728,000 tons of cow milk and as said in a statement by Turkish Statistical Institute (TurkStat), the November figure decreased by 2.1 percent in comparison with the same month last year. According to the statement, in the January-November period, [the cow milk production] decreased by 5.2 percent when compared to the same period of the previous year. In November there was a decrease of 2 percent in comparison with the same month last year, as 128,700 tons of drinking milk was produced and the data also showed 20.4 percent increase in cream production, and production of drink made of yoghurt grew by 6.8 percent in November. Cheese production from cow’s milk decreased 1.2 percent and butter production dropped 7.9 percent, while whole milk powder production decreased 14.4 percent.

US Natgas production to decline for first time

Natural gas production in the US is poised to decline for the first time in half a decade, the government said on Tuesday, as persistently low prices lead to a slowdown in drilling.  The US is the world’s largest gas supplier and is flexing its muscle in international markets through exports of liquefied gas.  But investors concerned about meagre returns have begun to hold back on funding for oil and gas exploration and production companies. The companies have responded by cutting back on capital spending and in turn, tempering their forecasts for future production.  While US “dry gas” production, which excludes hydrocarbon liquids, will rise by 3 percent to a new record of 94.7 billion cubic feet per day this year, the Energy Information Administration said in its short-term energy outlook on Tuesday, it will fall back in 2021.  The agency expects production will be 94.1 billion cu ft/d next year, representing the first annual decline since 2016, as relatively low natural gas prices contribute to a reduction in natural gas-directed drilling.

Gold, silver having dead-cat bounce

After the metals’ recent 5percent rally, gold and silver have managed to hold support and bounce from the lows. This morning gold and silver are higher, which we see as a dead-cat bounce in markets that are probably going to work their way lower. The overall pattern has turned bearish; however, the sell-off has not turned our algorithm to the short side yet. We are still long the metals, although we realize the probabilities are that lower prices are coming. The metals are one down day from reversing to the short side. These patterns appear in all markets, which is why we don’t talk about the news. The news is more often than not priced into markets long before it ever hits the tape.

 

Platinum breaches $1,000, nears 2-year high

Platinum had the best day in nearly two years as prices surged past the $1,000 an ounce mark on Wednesday. All precious metals were having a good day as investors were digesting the signing of the U.S.-China ‘Phase One’ trade deal. Platinum was the best performer, rising 3.7 percent on the day, followed by palladium, which was up 2 percent on the day, and then by silver and gold, up 1.5 percent and 0.8 percent on the day, respectively. Analysts were puzzled as to why the metal rose so much in one day with no significant news spotted by the experts. However, many cited the $1,000 an ounce level as a very important technical mark that needed to be breached.

OPEC Oil output down in Dec 2019

According to secondary sources, total OPEC-14 preliminary crude oil production averaged 29.44 million barrels per day (mb/d) in December, lower by 161,000 barrels per day (tb/d) month-on-month, Trend reports citing OPEC’s Monthly Oil Market Report. Crude oil output increased mainly in Angola, while production decreased in Saudi Arabia, Iraq and the UAE, according to the report. The share of OPEC crude oil in total global production decreased by 0.1 percentage points to 29.4 percent in December compared with the previous month. Estimates are based on preliminary data from direct communication for non-OPEC supply, OPEC NGLs and non-conventional oil, while estimates for OPEC crude production are based on secondary sources. Preliminary data indicates that the global oil supply in December decreased by 0.06 mb/d to average 100.28 mb/d, compared with the previous month. Non-OPEC supply (including OPEC NGLs) increased by 0.11 mb/d compared with the previous month to average 70.84 mb/d in December, higher by 1.55 mb/d y-o-y. Preliminary incremental production in December was mainly driven by the UK, Norway, Canada, Mexico and the US.

Iron ore outlook rests on vale’s tricky rebound

Shareholders in Rio Tinto are likely to be celebrating another bumper payout when the miner reports annual results next month. The Anglo-Australian group — along with rivals BHP and Brazil’s Vale — is generating bucket loads of cash from the continued strength of iron ore. Boosted by strong demand from China and a string of supply disruptions the key steelmaking ingredient rose 30 percent last year and averaged $90 a tonne. For big producers such as Rio that can mine the material for as little as $15 a tonne, that means windfall profits — and sturdy dividends for investors. Deutsche Bank reckons Rio generated close to $10 billion of free cash flow last year. Whether it can match that performance in 2020 will depend on the direction of iron ore prices. The good news for its shareholders is that prices have remained elevated over the past month, trading at more than $90 a tonne as Chinese steelmakers have restocked ahead of the Lunar New Year holiday that starts on January 25, and the start of the spring construction season.

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