Edible oil, ghee market dependent on imported palm oil: CCP
The Edible oil and ghee market of Pakistan is highly dependent on imported palm oil, which is 100 percent imported and the local sources have a share of only 14 percent in the total edible oil consumption. A Competition Commission of Pakistan (CCP’s) new report on the ghee and cooking oil industry released on Tuesday revealed that the rise in international prices of edible oil and oilseeds and exchange rate fluctuations have a key impact on the domestic prices. It is also a market norm the producers pass on any increase in cost of purchase to the end consumers. The Federal and provincial governments have launched oilseed promotion initiative, where the growers of oilseed receive a subsidy of PKR 5,000 per acre to plant canola and sunflower up to 20 acres.
India emerges as the world’s largest producer
India has emerged as the world’s largest producer and consumer of sugar as well as the world’s second largest exporter of sugar by producing more than 5000 Lakh Metric Tonne (LMT) sugarcane. Out of the total produce, 3574 LMT of sugarcane was crushed by sugar mills to produce about 394 LMT of sugar (Sucrose). Out of this, 35 LMT sugar was diverted to ethanol production and 359 LMT sugar was produced by sugar mills. In a statement issued by the Ministry of Consumer Affairs, Food & Public Distribution, the sugar season broke all records of sugarcane production, sugar production, sugar exports, cane procured, cane dues paid and ethanol production were made during the season.
Declining wheat crop to put food security in peril
The Production of wheat in the upcoming Rabi season is expected to decline as decreasing profit margin and high input costs are making farmers look out for alternative crops like maize and rice, jeopardising national food security. Meanwhile, expressing concerns over the impending food shortage in the wake of floods, Prime Minister Shehbaz Sharif has called for collective efforts to ensure food security. During 2021-22, the area under cultivation for wheat decreased by 2.1 percent to 8,976,000 hectares. In 2020-21, the area was 9,168,000 hectares.
How the opec meeting on production influences oil and gas stocks
The Organization of the Petroleum Exporting Countries (OPEC) announced last week that it would cut production of oil by approximately 2 million barrels of oil per day. That’s a reduction in the global supply of about 2 percent. This announcement had an immediate effect on the oil and gas markets, driving prices higher. The price for a barrel of crude oil rose from $76.71 to $92.64, an increase of just under 21 percent. But, how do OPEC’s meeting and the resulting change in the price of oi, impact the stock market — and oil and gas stocks in particular? We’ll break down what you need to know.
BHP quarterly iron ore production rises on lower covid-19 impacts
BHP Group said on Wednesday its quarterly iron ore output rose, aided by better performance from its Western Australian assets and a continued ramp-up at its South Flank project. The higher production comes despite an 18 percent fall in spot prices of iron ore over the September quarter as China repeatedly locked down several major cities as part of its “zero-covid” policy, hitting economic activity and demand for iron ore. Rival Rio Tinto had tempered its annual iron ore shipments forecast, after quarterly iron ore deliveries fell.
Tea volumes at Mombasa auction dip as drought ravages the region
The Volume of tea auctioned at the Mombasa bourse has gone down significantly, with officials warning the trend may worsen in the next decade due to erratic weather. Latest figures from the East African Tea Trade Association (EATTA) show the volume of tea offered on the auction dipped by almost 500,000 kilogrammes in the last trade, the second time in a row the quantities have declined in less than a month. EATTA managing director Edward Mudibo said the decline in volume of tea offered for sale at the Mombasa auction was as a result of ongoing drought. “Kenyan tea contributes about 60 percent of tea traded in the auction followed by Uganda at 8 percent. Rwanda, Burundi and Tanzania come third, fourth and fifth respectively.
Why New Zealand’s milk supply problems will impact global prices
Fears that a difficult early season could leave New Zealand’s annual milk supply as much as 3 percent behind last season are likely to underpin global milk prices. The country’s dairy farmers had a very tough time coping with New Zealand’s warmest and wettest winter (June to August) on record. With the calving season from August to October, as the weather transitions from winter to spring, tough conditions left New Zealand milk production for August down 4.9 percent year on year, at the lowest August volume for five years. Drought at the end of the last milk season hit cow conditions and winter feed provision. There has been no let-up for dairy farmers, with the winter months bringing record July snowfalls in the South Island, followed by extreme rainfall throughout New Zealand that caused severe flooding and landslides.
Analysis: global natural gas crisis dampens momentum for ‘cleaner’ LNG
Europe’s energy crisis has cooled efforts to lower the carbon intensity of liquefied natural gas (LNG) shipments, as buyers worried about a winter supply crunch prioritize securing shipments of any kind over burnishing their green credentials. Natural gas can be certified as low- or no-carbon if its producers can prove they have reduced greenhouse gas emissions associated with getting it to market, or if they purchase carbon offsets to cut its net climate impact. But the number of deals to ship carbon neutral LNG around the world has dropped to less than 10 so far this year, from 30 in 2021, according to energy research firm Wood Mackenzie. And demand for the greener fuel has dried up, according to Reuters interviews with nine LNG market analysts, industry officials and traders.