Global oil production increases by 0.15pc in June
World oil production rises by more than 0.15 percent, or around 150,000 barrels per day (bpd), to nearly 102.90 million barrels per day (bpd) in June, according to the International Energy Agency’s (IEA) latest report on Thursday.
According to the Oil Market Report, crude oil production by the Organization of Petroleum Exporting Countries (OPEC) in June fell to 27.06 million bpd, a drop of 150,000 bpd compared to the previous month.
The group’s total oil production reached approximately 32.64 million bpd over the same period.
Daily oil production in non-OPEC countries rose by 280,000 bpd in June to an estimated 70.26 million bpd after Brazil, Canada and Kazakhstan bounced back from oil field maintenance and as biofuels output rose seasonally.
China’s self-sufficiency in milk production
China’s imports of whole milk powder have dramatically decreased, dropping from an average of 670,000 metric tons (2018-2022) to 430,000 metric tons in 2023. The country’s milk production surged by 11 million metric tons from 2018 to 2023, a monumental achievement. The United States Department of Agriculture estimated China’s milk production at 41 million tonnes in 2023, a 4.6 percent increase from the previous year and a 28 percent rise since 2019.
Rabobank analysts compare China to a “dairy demand domino” that triggers a chain reaction when it falls. New Zealand, the primary dairy exporter to China, faces the challenge of finding new markets for nearly 150,000 tonnes of whole milk powder that China no longer requires. This volume equates to almost 1.3 million tonnes of milk, or 6 percent of New Zealand’s annual milk production, intensifying competition with other dairy-exporting regions such as the EU and the United States.
Largest spring wheat production since 2020: USDA
When scouts fan out across North Dakota fields in the third week of July, they will be looking to confirm or moderate expectations of a high-yielding spring wheat crop forecast this month by the US Department of Agriculture (USDA).
The USDA on July 12 forecast production of spring wheat other than durum in the United States this year at 577.84 million bushels, up 72.94 million bushels, or 14 percent, from 504.9 million bushels in 2023. The forecast was the Department’s first survey-based estimate of the season for spring wheat. If the forecast holds, the 2024 other spring wheat crop would be the largest since 587.505 million bushels in 2020 and would compare favorably with 493 million bushels as the recent five-year average outturn.
USDA increases US sugar production estimates
The USDA increased its outlook for U.S. sugar production and imports in the 2023-24 marketing year, which together will lead to sharply higher ending stocks, according to the July 12 World Agricultural Supply and Demand Estimates.
Larger beginning stocks and an expected gain in beet sugar output for 2024-25 more than offset lower imports from Mexico than previously forecast to achieve a 13.5 percent ending stocks-to-use ratio for the upcoming year.
It puts beet sugar production at 5,179,000 tons for the current marketing year, up 133,781 tons from June and a 2.7 percent increase. Cane sugar production also increased slightly, by 5,791 tons in Florida, to 4,041,000 tons. Total U.S. sugar production is now 9,220,000 tons, up 1.5 percent from the June projection but down 30,000 from the 2022-23 estimate.
China / construction begins on uranium production project’
Construction has begun on China’s largest natural uranium production project in the Ordos Basin in the Inner Mongolia Autonomous Region of northern China, according to China Atomic Energy Authority (CAEA), as reported in state media.
The project is being developed by state-run China National Nuclear Corporation and is part of CAEA’s nuclear industry development plan.
CAEA said the project’s key technical indicators are “among the best in the world”. It will have China’s largest production capacity and further improve the country’s security of supply of natural uranium, CAEA said.
China accounts for almost half the reactors under construction globally and is the fastest expanding nuclear power generator in the world..
According to International Atomic Energy Agency data, China has 25 nuclear plants under construction. It has 56 plants in operation that in 2023 generated a 4.9 percent share of electricity production.
Malaysia palm oil futures seen averaging 3,850-4,000 Ringgit/ton
Malaysia’s benchmark crude palm oil futures are expected to average between 3,850 ringgit and 4,000 ringgit ($823.53 and $855.61) per metric ton this year, a slight increase from the 3,800 ringgit per ton average in 2023, the Malaysian Palm Oil Association (MPOA) said on Monday.
The projection reflected ongoing market dynamics and supply-demand balances in the palm oil sector, MPOA chief executive Joseph Tek said in a statement.
The MPOA, which represents plantation firms, said crude palm oil (CPO) production in Malaysia, the world’s second largest producer, could potentially exceed 19 million metric tons in 2024 after a strong performance in the first half of the year.
Coffee prices post modest losses
September arabica coffee (KCU24) on Wednesday closed down -0.45 (-0.18 percent), and Sep ICE robusta coffee (RMU24) closed down -2 (-0.04 percent).
Coffee prices Wednesday posted modest losses. Recent rain in Brazil has eased dryness concerns and is weighing on arabica prices. Meanwhile, robusta is under pressure after ICE-monitored robusta coffee inventories rose to a 1-year high Wednesday of 6,119 lots, signaling increased supplies.