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Dry weather diminishes outlook for global grain crops – IGC

The International Grains Council cut its forecasts for 2017/18 global corn, wheat and barley crops after prospects took a hit from dry weather in several countries. “Because of overly dry weather, including in North America, the EU and Australia, the outlooks for global corn, wheat and barley harvests are revised lower,” the IGC said in a monthly update, adding rains would likely be too late to reverse damage in some areas. The IGC cut its forecast for the global corn crop by 5 million tonnes to 1.02 billion tonnes, driven ...

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Iron’s Jekyll-and-Hyde Moment Shows This Rally’s `Dangerous’

Iron ore’s latest rally has run beyond fundamentals and there’s a risk of a sharp reversal as prices tumble back below $50 a metric ton next year, according to Westpac Banking Corp. Senior Economist Justin Smirk, who says the raw material has something of a split nature. “Most commodities are pretty Jekyll-and-Hyde,” Smirk said in an interview. “Iron ore does fit that trend. Hyde is meant to be angry, Jekyll is meant to lovely and nice,” he said, referring to the principal character in Robert Louis Stevenson’s 19th century classic ...

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China steel futures drop back on weak demand outlook

China’s steel rebar futures eased after a three-day gain, sliding nearly 2 percent due to underlying concerns about a weak demand outlook amid increasing output at mills. “When the heat wave across the country is gone, demand may not see a strong rebound despite a seasonal increase in activity,” said analysts at Orient Futures in a note. Construction work typically slows during periods of hot summer weather, picking up again when temperatures cool in the fall, before the onset of winter. The China Meteorological Administration said on Wednesday that more ...

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Goldman’s Now Bullish on Iron Ore This Year – But Not Next

Goldman Sachs Group Inc. boosted its iron ore forecasts after better-than-expected demand in China raised prices, but warned that it remains bearish on next year amid prospects for plentiful mine supplies and a worldwide glut. The three-month forecast was raised to $70 a metric ton from $55, and the year-end target increased by $5 to $60, according to a report from analysts including Yubin Fu and Max Layton received Thursday. Next year, prices are still expected to drop, it said. Iron ore has surged in recent weeks to top $70 ...

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Brazil’s Vale net income plunges on FX, asset writedowns

Brazil’s Vale SA second quarter net income slumped from the same period last year, missing estimates, crimped by a weaker currency and writedowns on the value of several assets, the world’s largest iron ore producer said on Thursday. In a securities filing, Vale said net income totaled $16 million, far below an average consensus estimate of $421 million and the $1.106 billion reached in the second quarter last year. Net profit reached $949 million when adjusted for foreign exchange impacts and one-off items, above the $784 million reached in the ...

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Egypt wheat reserves enough for 6 months after buying spree

Egypt’s strategic wheat reserves are sufficient to last for six months, a supply ministry official told Reuters following a string of large purchase tenders intended to boost stocks after a smaller local harvest than in the past few years. The world’s largest wheat importer’s strategic reserves stand at 4.6 million tonnes, supply ministry spokesman Mamdouh Ramadan said. Egypt has been buying up a lot of wheat on international markets this month, with state grain buyer GASC booking 1.25 million tonnes in July, or about 20 percent of its 6.2 million ...

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Palm oil may rise more into 2,675-2,703 ringgit range

The palm oil October contract is expected to rise more into a range of 2,675-2,703 ringgit per tonne, driven by a powerful wave c. This is the third wave of a three-wave cycle from the June 8 low of 2,376 ringgit. A Fibonacci projection analysis reveals that the wave c has travelled above its 61.8 percent level at 2,623 ringgit. Chances are it may extend to 2,703 ringgit. A rising trendline indicates a target range of 2,675-2,703 ringgit as well. Five smaller waves will make up the wave c. The ...

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Wheat edges higher as fears for spring supplies resurface

U.S. wheat edged higher on Thursday, further recovering from a near-one month low touched in the previous session as traders digested reports of weather damage to large swathes of a key producing region. FUNDAMENTALS * The most active wheat futures on the Chicago Board Of Trade rose 0.5 percent to $4.80-1/4 a bushel by 0110 GMT, having closed up 0.8 percent on Wednesday when prices touched a near one-month low of $4.73 a bushel. * The most active soybean futures were little changed at $9.99-1/2 a bushel, having firmed 0.8 ...

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Iron ore from Cassinga, Angola, may begin to be explored this year

The iron ore deposits operation in Cassinga may be resumed this year, with negotiations between Angolan iron and steel company Ferrangol and a foreign company at an advanced stage, the Angolan minister of Geology and Mines said recently. Minister Francisco Queiroz, quoted in the Jornal de Angola newspaper, added that negotiations with “a large world-class investor” are going well and that soon company representatives will have to return to the country to carry out an additional survey. “We hope that the project will start soon,” he added, adding that everything ...

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Russia’s Rusal says Q2 aluminium sales, prices up y/y

Russian aluminium maker Rusal on Thursday reported a 4.6 percent rise in second-quarter sales to 1.0 million tonnes and a 22 percent jump in average aluminium prices to $2,087 per tonne. London aluminium prices have risen 15 percent this year due to stronger demand and expectations that top producer China will reduce output during the winter as Beijing intensifies its war on pollution. “The main drivers for demand for aluminium were growth of consumer spending, particularly for cars, durable goods sales and also fixed asset investments,” Rusal, the world’s second-largest ...

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ArcelorMittal sees higher steel demand, but fears imports

ArcelorMittal, the world’s largest steel producer, raised its outlook for global steel demand on Thursday, as it expected the Chinese industry to return to growth, but said cheap imports continued to hurt its business. The group said it expected apparent steel consumption, which takes into account inventory levels, to increase by 2.5 to 3.0 percent globally in 2017 compared to last year, a sharp increase from its previous 0.5 to 1.5 percent estimate. This increase was driven by a recovery in the Chinese market, the company said, which it had ...

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Glencore buys 16.6 pct of Rio’s Hunter Valley coal assets from Yancoal

Glencore on Thursday bought a 16.6 percent stake in assets in Hunter Valley, Australia, for $429 million from China’s Yancoal, gaining some of the coal operations it had sought in a bidding war which Yancoal won. Rio Tinto last month confirmed Yancoal Australia was the preferred bidder for its Australian Coal & Allied unit after the company added an 11th-hour sweetener. But on Wednesday, Yancoal’s Chinese parent company Yanzhou said its board had approved the transfer of a 16.6 percent interest in the HVO (Hunter Valley Operations) joint venture to ...

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June 2017 Quarterly Production Report Fortescue Metals Group Limited (ASX: FMG, Fortescue)

Fortescue has released its June 2017 quarterly production results, reporting shipments of 44.7 million tonnes (mt) of iron ore. Cash production costs (C1) were a record US$12.16 per wet metric tonne (wmt), a 15 per cent improvement over the June 2016 quarter and seven per cent lower than the March 2017 quarter. Guidance for FY18 has also been provided, targeting a further reduction in C1 costs to US$11-12/wmt and maintaining shipments of 170mt. During the quarter Fortescue extended its nearest term debt maturity to 2022 by refinancing US$1.5 billion of ...

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ArcelorMittal reports second quarter 2017 and half year 2017 results View analysts slides in a new window

ArcelorMittal, the world’s leading integrated steel and mining company, today announced results[1] for the three month and six month periods ended June 30, 2017. Highlights: Health and safety: LTIF rate of 0.72x in 2Q 2017; 1H 2017 LTIF of 0.78x stable YoY Operating income of $1.4 billion in 2Q 2017; 1H 2017 operating income of $3.0 billion, 38.1% higher YoY EBITDA of $2.1 billion in 2Q 2017; 1H 2017 EBITDA of $4.3 billion, 61% higher YoY Net income of $1.3 billion in 2Q 2017; 1H 2017 net income of $2.3 ...

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Coal to stay king in India as power mainstay, says Niti report

Coal would remain at the centre stage in India with its share in energy mix not declining below 46% in 2047, claimed a report titled ‘Energising India’, jointly prepared by the NITI Aayog and the Institute of Energy Economics, Japan. The study found that coal and nuclear would continue to operate as base load units for power generation. The report said that the share of electricity generation through coal based power plants will almost be around 55% in 2032. In FY17, coal power plants generated more than 85% of the ...

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