Sugar production drops 34pc on elections
Sugar production in August dropped by 34 percent as more factories closed for maintenance amid scarcity of mature cane, subjecting consumers to higher prices of the commodity on shelves.
Total sugar production in August was 46,459 tonnes from the 70,278 tonnes recorded a month earlier, data from the Sugar Directorate shows.
The agency said that Kwale, Soin and OlePito factories had closed for maintenance in the review period while Nzoia and Chemelil, which were shut in May, resumed operations in August.
The directorate said the decline in production could also be attributed to disruption caused by the August 9 general elections.
Brazilian wheat production on the rise
IN A country where lush fields of soybeans and corn generally dominate the farming landscape, this season’s wheat crop in Brazil is on track to set a new production record and get closer to the government’s goal of being self-sufficient within the next five years, and a net exporter within 10 years.
With the early wheat harvest now underway in the country’s central west, local agribusiness consultants Safras & Mercado expect Brazilian farmers to harvest 10.9 million tonnes (Mt) of wheat this year, up from the early season estimate of 10.5Mt.
If the lofty forecast becomes a reality, this year’s crop would be a staggering 41.2 percent higher than the previous record of 7.7Mt, set just last season, and more than double the 2019-20 production of 5.2Mt.
The potential record crop has been facilitated by a substantial increase in the planted area, up from 2.7 million hectares (Mha) in 2021-22 to 3.2Mha when seeding concluded at the end of June. This is the second-biggest wheat area on record behind the 3.3Mha seeded in the 1990-91 season, off which only 3.3Mt was reaped. Much progress has been made in developing hybrid wheat varieties more suited to tropical conditions, and farmers have also reacted to the higher global price environment over the past couple of years.
OPEC+ is expected to cut oil production
In Vienna on Wednesday, the OPEC+ alliance is expected to consider a cut in oil production of up to 1 million barrels a day — an amount that could drive oil and gas prices back up after weeks on a downward trend.
The meeting of the 24 OPEC+ oil-producing countries, including Russia, comes at a time when much of the world is already battling soaring energy costs. A supply cut could also exacerbate tensions between Saudi Arabia and the U.S., where President Biden has been trying to rein in prices at the gas pump ahead of the midterm elections.
OPEC+, formed in 2016, includes the 13 Organization of Petroleum Exporting Countries members and 11 other non-OPEC members.
It’s unclear how much of a price increase the supply cut would cause. The world consumes up to 100 million barrels of oil a day, so taking 1 million off the market would have a noticeable effect. News of the proposed cut sent oil prices up by $3 a barrel on Tuesday.
Butter supply constrained with some producers forgoing churning
Lower milk production and higher demand for seasonal products like eggnog are pressuring the supply of butter and contributing to a surge in prices.
The amount of butter in cold storage declined 10 percent from July to August, with levels down 22 percent from a year ago, according to the U.S. Department of Agriculture. The average price for Grade AA Butter stood at $3.15 per pound for the week ending Sept. 30, an 80 percent increase from the week of Sept. 24 in 2021.
Tighter butter supplies come amid declining seasonal milk production in many areas of the country, according to the USDA. While the milk output per cow is higher than it was last year, there were about 11,000 fewer milk cows on U.S. farms in August compared to 2021.
Indian firm Vedanta’s iron ore output drops in Jul-Sep
Indian private-sector resources firm Vedanta’s iron ore production fell by 17pc in July-September compared with the same period a year earlier as a result of heavy rainfall.
The company’s saleable iron ore production stood at 1.08mn t over the three-month period, while sales edged up by 2pc against the previous year, to 1.34mn t.
Vedanta’s pig iron production declined by 42pc from a year earlier to 121,000t in July-September after the firm shut down its smaller blast furnaces.
Steel and raw materials consumption typically slows during the monsoon season, which hinders construction activity. And a 15pc export tax on steel products and 50pc on all grades of iron ore imposed by the government in late May prompted Indian mills to reduce production to maintain the domestic supply-demand balance.
Vedanta’s total finished steel production in July-September rose by 11pc on the year to 325,000t, supported by the completion of debottlenecking activities in April-June.
Flooding impacting rice production in Pakistan
Recent flooding in Pakistan has damaged the rice crop and hindered wheat planting, according to a Global Agricultural Information Network report from the Foreign Agricultural Service of the US Department of Agriculture (USDA).
The report said rice output for the 2022-23 marketing year was revised down to 8.3 million tonnes, well below last year’s record total of 9.1 million. Projected rice exports also are reduced to 4.5 million tonnes in 2021-22, which would still be a record, and to 4.2 million tonnes in 2022-23.
“During the first six months of 2022, rice exports increased to almost all traditional markets, including Africa, the Gulf states and the EU, with shipments to China showing the most robust growth,” the USDA said.
The USDA noted that rice consumption estimates for 2021-22 and 2022-23 increased to 4.3 and 4.6 million tonnes, respectively, “as lifting of COVID restrictions has allowed for a resumption of social events, generating a positive impact on rice consumption.”