Rice production under threat
Rice production is under threat in parts of Asia from higher fertilizer costs at a time when demand is increasing, posing a potential risk to food security and efforts to contain inflation. Crop yields may decline in Thailand, the world’s second-largest exporter, because of elevated prices for crop nutrients, according to a research unit of Kasikornbank Pcl, while in the Philippines, the No. 2 importing country, a lower harvest is likely to increase the need for overseas purchases. China’s worried about the crop impact of pests, while India’s output depends on a good monsoon. Most of the world’s rice is grown and eaten in Asia, making it vital for political and economic stability in the region. In contrast to the surge in wheat and corn prices after Russia’s invasion of Ukraine, rice has been subdued, but there is no guarantee it will remain so. Back in 2008, prices soared above $1,000 a ton, more than double the level now, amid a panic over supplies.
Oil prices slip as weak factory data fuels global demand concerns
Oil prices edged lower on Tuesday as investors absorbed a bleak outlook for fuel demand with data pointing to a global manufacturing downturn just as major crude producers meet this week to determine whether to increase supply. Brent crude futures dropped 24 cents, or 0.2 percent, to $99.82 a barrel by 0634 GMT, while WTI crude futures eased 10 cents, or 0.1pc, to $93.78 a barrel. The slide came after Brent futures slumped on Monday to a session low of $99.09 a barrel, their lowest since July 15. The US crude benchmark dropped to as low as $92.42 a barrel, its weakest since July 14. “Crude prices tumbled after a wealth of factory activity data suggested the world is headed towards a giant global economic contraction, and on expectations for more oil output following a very good earnings season for oil companies,” said Edward Moya, senior market analyst from Oanda, in a note. Recessionary concerns were heightened on Monday as surveys from the United States, Europe and Asia showed that factories struggled for momentum in July. Flagging global demand and China’s strict Covid-19 restrictions slowed production. The price drops also come as market participants await the outcome of a meeting on Wednesday between the Organisation of the Petroleum Exporting Countries (Opec) and allies including Russia, together known as Opec+, to decide on September output.
Maha’s sugarcane crushing season to begin early this year: official
The sugarcane crushing season in Maharashtra will begin early this year – from the first day of October, instead of the end of that month, a senior official has said. The sugarcane crushing season in Maharashtra generally starts in October-November and continues till mid-April. However, in the 2021-22 season, the crushing process stretched till the end of May due to record production of the crop. Maharashtra had set a record for itself by producing 137.28 lakh tonnes of sugar in the 2021-22 season, which was nearly 31 lakh tonnes more than the year before it. “Looking at the record production of sugarcane and sugar in the previous season, the mills in Maharashtra will start the production early this year,” state Sugar Commissioner Shekhar Gaikwad told PTI on Tuesday. The cane crushing process for the 2022-23 season will begin on the first day of October, he said. The farmers in the state had produced 1,413 lakh metric tonnes of sugarcane in the bygone season, which gave 137.2 lakh tones of sugar, he said. As per the estimate given by the sugar commissioner office, the sugar production this year is expected to be around 138 lakh tonnes. The number of sugar mills that operated during the last season was 200, which is expected to go up by three this year. As against the 1,321 lakh tonnes of sugarcane crushed during the last season, the quantum projected by the sugar commissioner office this year is 1,343 lakh tonnes, as per the projection report.
China is one small step closer to getting alternative iron ore supply from Simandou
The development of one of the largest untapped high-grade iron ore deposits in the world in Guinea, Simandou, has moved a step forward after miners struck a deal to develop key infrastructure at the West African location. Simandou’s significance lies in its ability to provide major iron ore consumers such as China with an alternative to top supply sources like Australia and Brazil, creating raw material diversification for Chinese and other steel mills while offering coveted higher-quality ore. But the future Guinea mines, stretched across four blocks on two northern and southern parcels and over 100 kilometers of rough and sensitive terrain, are notoriously difficult to develop, resulting in years of delays and a production stalemate. But on Wednesday, the two consortium owners of the four blocks, Winning Consortium Simandou and Rio Tinto Simfer, and the Guinean government, agreed to co-develop multi-user infrastructure for Simandou, a step forward in progressing mining operations. “WCS and Rio Tinto Simfer are committed to co-develop the rail and port infrastructures in line with internationally recognised environmental, social and governance standards,” a statement by the consortium owners and the Guinean government said. “The infrastructure constitutes the backbone of the Simandou project, that presents a significant opportunity for the economic growth of the Republic of Guinea, in addition to the mining activities it will support.”
Milk output down 50,000 litres
Milk production in Gujarat has taken a hit of around 50,000 litres per day due to the outbreak of viral infection Lumpy Skin Disease (LSD) among the cattle. Though this accounts for a mere 0.25 percent of the daily procurement of 20 million litres, officials in the state are scrambling to get cattle vaccinated.