rawmaterialsmarkets

Kyrgyzstan has appealed to Kazakhstan, Belarus, Azerbaijan, Uzbekistan, and Turkmenistan for help in ensuring stable fuel supplies. Kyrgyz authorities fear a shortage due to Ukrainian strikes on Russian refineries, Reuters reported on Thursday, July 2, citing a statement from the Kyrgyzstan Ministry of Energy.

Copper rose along with other industrial metals amid a weakening US dollar and lower expectations that the Fed will raise interest rates in the coming months. Bloomberg writes about this.
“Red metal” rose on the London Metal Exchange (LME) on Friday by almost 1%, allowing it to end a two-week streak of declines. Weak US labor market data reduced expectations for borrowing costs and eased some of the downward pressure on industrial demand. The US dollar index has been falling for the second day in a row, making metals cheaper for holders of other currencies.

Мировые цены на продовольствие немного снизились в июне после того, как перемирие между США и Ираном ослабило опасения по поводу новых сбоев в цепочках поставок. Об этом пишет Bloomberg.
Индекс продовольственных цен ООН в июне опустился на 0,3% по сравнению с предыдущим месяцем, прежде всего за счет зерновых и сахара, говорится в пятничном отчете Продовольственной и сельскохозяйственной организации (ФАО).
Временное мирное соглашение, открывшее период переговоров между Вашингтоном и Тегераном, восстановило торговые потоки через Ормузский пролив — ключевую артерию для поставок зерна и сельскохозяйственных ресурсов, таких как удобрения и дизельное топливо. Военная премия за риск, охватившая рынки сельхозкультур и удобрений, испарилась в начале июня, ослабив опасения по поводу затяжных перебоев с поставками.
Однако по мере начала уборки урожая в Северном полушарии внимание смещается к сокращению посевных площадей, снижению урожайности и неблагоприятной погоде после рекордной волны жары в Европе. Развивающийся Эль-Ниньо — циклическое погодное явление, способное вызывать наводнения в одном регионе и засуху в другом — грозит еще сильнее дестабилизировать глобальную продовольственную безопасность, повредив урожай в ключевых регионах-производителях.
Индекс ФАО отслеживает продовольственные товары, торгуемые на международных рынках. Он на 1,7% выше, чем год назад, но по-прежнему почти на 19% ниже рекорда, достигнутого после начала конфликта между Россией и Украиной в 2022 году.
#RawMaterialsMarkets , #MarketTurbulence

The Australian government said on Friday that China Mineral Resources Group’s efforts to reduce costs for Chinese steel mills could lead to lower iron ore prices in the medium term.
The Department of Industry, Science and Resources made the statement in its quarterly resources and energy report. Australia is the world’s largest exporter of iron ore, and the commodity is the country’s main export earnings item and an important source of government revenue. China buys about three quarters of the world’s seaborne iron ore trade.

Saudi Arabia exports the largest volume of oil from the Persian Gulf since the war with Iran blocked the Strait of Hormuz: producers across the region are increasing shipments following an interim peace deal between Washington and Tehran. Bloomberg reports on this.

Wheat on Euronext fell on Thursday amid a stronger euro and expectations of a large harvest in the Black Sea region. Corn futures hit new contract highs as forecasts of prolonged hot and dry weather pose a threat to crops in Western Europe.

India should expand its oil and fuel storage capacity while oil prices remain low, said on Thursday the Minister of Petroleum and Natural Gas Hardeep Singh Puri.
According to him, the country's total crude oil stocks in ports, terminals, oil refineries, and strategic oil reserves currently ensure supplies for 76–80 days. Puri added that New Delhi “must have more.”

Wheat prices on the Euronext exchange fell on Tuesday to the lowest level in two weeks, while corn futures reached new contract highs. According to traders, the market continues to assess the more significant damage caused by the extreme heat in late June to corn crops compared with wheat.

According to data from the U.S. Energy Information Administration published on Tuesday, crude oil production in the United States reached 13.93 million barrels per day in April, setting a historical record. Producers increased output in response to higher oil prices driven by the war in Iran.
According to the EIA, in April production rose by 216,000 barrels per day. Mexico set a national record: output reached 2.37 million bpd.

Aluminum is moving toward its biggest monthly drop since 2008, as expectations of a return of lost supplies from the Middle East have led to a rapid unwinding of the rally sparked by the war in Iran. Bloomberg reports this.
In June, the metal fell by more than 15% after an interim peace agreement between the United States and Iran sparked optimism about the resumption of Middle East shipments amid the opening of the Strait of Hormuz. This erased gains over the previous three months, driven by the loss of supplies from the region, which accounts for nearly one-tenth of global production.

Since the start of the year — after reaching a record high at the end of January — gold prices have already fallen by more than 7%, and since the start of the war in the Middle East, they have dropped by more than 20%. Nevertheless, analysts at Goldman Sachs believe that this kind of trend does not mean an end to the rise in precious metal prices this year, Yahoo Finance writes.

After nearly three years of sharp price fluctuations, lithium is showing a rapid recovery in 2026. Despite the fact that prices have more than doubled from last year's lows, Bernstein believes the rally is more in the middle of the journey rather than approaching its peak.

Oil prices fell during Asian trading on Friday and continue to move toward a third consecutive weekly decline: improved shipping through the Strait of Hormuz and optimism about a peaceful agreement between the US and Iran outweigh concerns raised after an attack on a cargo ship near Oman.

UAE's oil exports bounced back to nearly 85% of pre-war levels with Iran at the start of June, as reported by Bloomberg.
The recovery kicked in even before Washington and Tehran struck a provisional peace deal. The Gulf nation ramped up its pipelines, storage, and alternative supply routes. This is highlighted in the IEA report.

The Baltic dry index fell on Monday due to a decline in freight rates across all vessel categories.
The main Baltic index, reflecting rates for capesize, panamax, and supramax vessels, dropped by 38 points, or 1.4%, down to 2,684.
The capesize index decreased by 75 points, or 1.8%, down to 4,074. In the previous session, it hit the highest level since June 10.

U.S. military is coordinating dozens of secret operations for ship-to-ship oil transfers at the exit of the Strait of Hormuz, utilizing aircraft, maritime drones, and helicopters to escort convoys to the waiting tankers. This is reported by Reuters citing sources.
The operation employs a "tanker" technique that Iran has long used to circumvent sanctions. The transfer occurs at two points in the Gulf of Oman – off the coast of Fujairah in the UAE and at the Omani port of Sohar. According to shipping statistics and satellite images analyzed by Reuters, it began in early May, involving at least 116 vessels.

Russia is shipping nearly record volumes of oil amidst ongoing attacks on refineries, pushing more barrels onto the global market even as production declines. This is reported by Bloomberg.
Average daily shipments over the 4 weeks leading up to June 14 reached 3.83 million barrels. This is the highest since December, unchanged compared to the previous week, according to tanker tracking data collected by Bloomberg. Since the start of the year, the average volume of 3.49 million barrels per day exceeds annual figures for every year since the onset of the special military operation in February 2022.

Iron ore prices have dipped below $100 per ton for the first time since March, driven by signs of oversupply amid weakening demand from China. This is reported by Bloomberg.
Futures dropped 2.1% to $99.10 per ton in Singapore, marking a second consecutive day of decline. This week's data showed that steel production in China contracted again in May. Additionally, investments in fixed assets and consumer spending have fallen to levels not seen since the pandemic, exposing risks for the largest economy in Asia.

European wheat futures trading in Paris dropped below the €200 mark on Monday, hitting a low not seen in nearly four months, though they bounced back slightly by the end of the trading session.
The September contract for milling wheat on the Euronext exchange in Paris wrapped up the trading session at 19:30 with a drop of 0.5% — down to €199.75 ($231.73) per metric ton. During trading, the contract dipped to €198 — the lowest level since 28.02.

The U.S. Commodity Futures Trading Commission (CFTC) is considering blocking the CME Group's proposal to launch 24/7 futures contracts for crude oil, according to Bloomberg, citing a senior official familiar with the situation.
CME announced on Thursday plans to roll out round-the-clock trading seven days a week for a range of futures contracts on crude oil and gold.