2025-08-06 22:33
HOUSTON, Aug 6 (Reuters) - Recent U.S. restrictions on ethane exports to China will likely make it more difficult to contract with Chinese companies, even though they have already been lifted, U.S. exporter Energy Transfer (ET.N) , opens new tab said on Wednesday. The U.S. placed restrictions on shipping ethane - and a wide swathe of other exports - to China in late May and early June after accusing Beijing of slowing shipments of rare earths vital to automakers and other industries. Sign up here. The restrictions were rescinded last month, but they disrupted flows of ethane and caused significant delays to shipments. "That, you know, put a little bit of a black eye on us, on our industry, on our country...," Marshall McCrea, co-CEO of Energy Transfer, said in a post-earnings conference call. The company is one of the top U.S. exporters of ethane, a natural gas liquid. "We think it's going to be probably a little bit more difficult to contract with Chinese crackers, good or bad, we think that they're probably going to be a little bit more hesitant," McCrea added. About half of U.S. ethane, which is extracted from shale gas, heads to China where it is run through crackers to produce ethylene, a building block for plastics. Chinese petrochemical firms use ethane as a feedstock because it is cheaper than naphtha, while U.S. oil and gas producers need China to buy their natural gas liquids as domestic supply exceeds demand. Rival Enterprise Products Partners (EPD.N) , opens new tab also warned last week that the export curbs compromised the U.S. brand for reliable supply and energy security. "These kind of actions rarely hurt the intended target and often backfire hurting our own industry more," said Jim Teague, CEO of Enterprise Products. Enterprise said at least one non-Chinese company that it was in discussions with about contracting ethane decided to contract naphtha instead. Energy Transfer reported a 11.5% decline in net income to $1.16 billion, or 32 cents per unit, in the three months ended June 30. Revenue of $19.24 billion came in well below estimates of about $22 billion, according to LSEG data. https://www.reuters.com/business/energy/us-ethane-curbs-will-make-contracting-china-harder-energy-transfer-says-2025-08-06/
2025-08-06 21:54
Aug 6 (Reuters) - Nutrien (NTR.TO) , opens new tab topped Wall Street estimates for second-quarter profit on Wednesday, as the world's top potash producer benefited from improved demand in North America amid a robust corn planting season. U.S. farmers expanded corn plantings by 5% this year to the highest since 2013 while cutting soybean acres by 4% to a five-year low, the U.S. Department of Agriculture said in June. Sign up here. The agency expects U.S. farmers will seed 95.203 million acres (38.527 million hectares) of corn this year, up from 90.594 million last year. "Fertilizer market fundamentals are supported by strong global demand, persistent supply disruptions and project delays. We have seen healthy fertilizer customer engagement and field activity in North America," CEO Ken Seitz said in a statement. Saskatoon, Canada-based Nutrien said it expects current-year potash sales volumes to be in the range of 13.9 million tonnes to 14.5 million tonnes. It previously projected potash sales volumes of 13.6 million tonnes to 14.4 million tonnes. U.S.-listed shares of the company were up more than 2% in trading after the bell. Nutrien's second-quarter potash sales jumped 31% to $991 million in the three months ended June 30. Total sales rose to $10.44 billion, from $10.16 billion a year earlier, with the retail segment, the company's largest by revenue, reporting sales of $7.96 billion during the quarter. The company posted an adjusted profit of $2.65 per share, compared with analysts' average estimate of $2.40, according to data compiled by LSEG. https://www.reuters.com/markets/commodities/nutrien-beats-quarterly-profit-estimates-strong-potash-demand-2025-08-06/
2025-08-06 21:54
Beijing says probe on beef imports will run until November 26 Chinese beef industry battles to reduce supply glut China has not renewed many registrations for US shipments BEIJING/CHICAGO, Aug 6 (Reuters) - China has extended for three months an investigation period for beef imports, the commerce ministry said on Wednesday, giving global suppliers a breather from the prospect of trade curbs as the domestic industry battles to reduce a supply glut. The inquiry, launched last December, came as slowing demand squeezes the world's largest market for imports and consumption, but does not target a particular country. Sign up here. Trade measures to reduce imports could hit major suppliers such as Argentina, Australia and Brazil, after China has already restricted imports from the United States. The investigation will now run until November 26, the ministry said, citing "the large volume of investigative work and the complexity of the case". It also pledged to ensure a "healthy and stable" global trade environment by communicating with all parties. "It's definitely a relief to beef exporters," said Even Rogers Pay, agriculture analyst at Trivium China. "The extension buys Beijing a few months to see whether the domestic industry can regain profitability without safeguards, and hopefully to make progress on other issues with major beef exporters." Although trade measures such as quota curbs were still not completely off the table, it was more likely something could be worked out quietly rather than being imposed, she added. Authorities have ramped up support for the industry, including financial measures. In July, an agriculture ministry official said beef cattle farming had been "generally profitable" for three consecutive months. China imported a record 2.87 million metric tons of beef in 2024, but imports of 1.3 million metric tons for the first half of 2025 were down 9.5% on the year. China has restricted imports of American meat by not renewing registrations that permitted shipments from hundreds of U.S. beef facilities after they expired in March, according to the U.S. Meat Export Federation, an industry group. "The vast majority of our plants aren't eligible to ship to China presently," federation spokesperson Joe Schuele said. "While the safeguard investigation is important, it's not at the top of our minds. The most urgent situation is to get our plants registered for China." Without exports to China, the federation estimated the U.S. beef industry's lost opportunities at about $4 billion annually. "Consistent and transparent plant approvals, without expiration, were among the most important components of the 2020 Phase One Agreement with China," federation President Dan Halstrom said, referring to the trade pact signed during U.S. President Donald Trump's first term. "It's time for China to return to those commitments." https://www.reuters.com/markets/commodities/china-extends-probe-imported-beef-respite-global-suppliers-2025-08-06/
2025-08-06 21:46
SAO PAULO, Aug 6 (Reuters) - Brazil exported 41.1 million metric tons of iron ore in July, breaking the country's previous record of 39.5 million tons set in December 2015, official data showed on Wednesday. WHY IT'S IMPORTANT Brazil is the world's second-largest exporter of iron ore after Australia. The steel-making material is also one of Brazil's main exports alongside oils and soybeans. Sign up here. The data comes as Brazil posted a $7.1 billion trade surplus for July, down 6.3% from a year earlier. BY THE NUMBERS Brazilian iron ore shipments, usually led by local miner Vale (VALE3.SA) , opens new tab, rose 4.7% in July from the same month last year, government data showed, even as revenues from these exports fell 8.8% to $2.62 billion as prices dipped about 13%. KEY QUOTE "June and July saw confidence rebound in the sector due to the progress of large projects in China and a resumption of production," Brazilian mining lobby group Ibram said in a statement. "This is one of the factors that may have influenced this demand," Ibram added, noting it also helped global prices to edge up from late June. https://www.reuters.com/business/energy/brazils-july-iron-ore-exports-hit-record-volumes-2025-08-06/
2025-08-06 21:38
Stock up 6% in extended trading Raises 2025 adjusted profit and net sales forecast Expects to repurchase about $1 billion of shares during 2025 Aug 6 (Reuters) - U.S. agrichemicals company Corteva (CTVA.N) , opens new tab raised its annual adjusted profit and sales forecast on Wednesday, following strong performance in the first half of the year, sending its shares 6% higher in extended trading. Reuters had reported in May that U.S. farmers have hit very few snags with corn planting this spring, and the foreseeable future is barrier-free. Sign up here. "While we continue to navigate a fluid macro environment, we are raising our full year guidance as a result of the strength of our global business and the setup for our Latin American business in the second half," said CEO Chuck Magro. The company expects full-year net sales to be in the range of $17.6 to $17.8 billion from $17.2 to $17.6 billion previously. It now forecasts 2025 adjusted earnings to be between $3.00 and $3.20 per share, from a prior view of $2.70 to $2.95 per share. "The improved crop protection results with higher volumes and profits show inventory destocking is behind Corteva. Going forward, we expect differentiated crop protection products will drive long-term profit growth in this business as well," said Morningstar analyst Seth Goldstein. Corteva's net sales rose 5.6% to $6.46 billion during the second quarter, driven by higher sales in all its regions. Analysts, on average, estimated net sales of $6.27 billion, according to data compiled by LSEG. Quarterly net sales at its seeds segment rose 4.8% to $4.54 billion, while that at its crop protection segment rose 7.7% to $1.92 billion. On an adjusted basis, the Indianapolis-based company posted a profit of $2.20 per share for the three months ending June 30, beating analysts' estimates of $1.89 per share, according to data compiled by LSEG. Corteva, among the largest crop-protection product makers in the United States, expects to repurchase about $1 billion of shares during 2025. https://www.reuters.com/business/energy/corteva-raises-annual-profit-sales-forecast-after-strong-first-half-performance-2025-08-06/
2025-08-06 21:35
SAO PAULO, Aug 6 (Reuters) - SALIC International Investment Company, a wholly-owned subsidiary of Saudi Agricultural and Livestock Investment Company, told Brazilian competition authorities on Wednesday it is a passive minority shareholder in rival food producers BRF (BRFS3.SA) , opens new tab and Minerva (BEEF3.SA) , opens new tab. SIIC, which owns 11.03% of BRF and 24.49% of Minerva, said "it does not hold any political rights that would allow it to interfere with or influence the independence and normal course of business and management of BRF and Minerva." Sign up here. The Saudi investor's clarification comes after a formal information request made by Brazil's antitrust watchdog CADE regarding the proposed takeover of BRF by Marfrig (MRFG3.SA) , opens new tab. The deal was approved by the minority shareholders of both companies on Tuesday. The Saudi investor abstained from voting and did not participate in the merger discussions of BRF and Marfrig, according to CADE's disclosures. Separately, CADE cleared the proposed transaction in early June. But CADE's nod was later challenged by Minerva, which asked it to scrutinize the deal more closely. Minerva claimed the merger would involve the transfer of BRF's current shareholders, including SALIC, to Marfrig's shareholding structure through a share swap. Minerva said if the transaction went ahead, the Saudi investor would gain influence over the business decisions of three competitors: Minerva, Marfrig, and BRF. BRF and Marfrig did not comment. CADE responded to Minerva by agreeing with a more prolonged merger review, according to a public decision on Monday. "The alleged facts, if proven, may indicate a possible alignment of interests and exchange of sensitive information between ... competitors," CADE's general superintendent wrote. That decision must be confirmed by a virtual CADE panel on August 11. By law, CADE has a 240-day deadline to investigate complex mergers, extendable by 90 days. If approved, Marfrig and BRF will create another global Brazilian food processor, with factories across the Americas, the Middle East and Asia. https://www.reuters.com/sustainability/boards-policy-regulation/brfs-saudi-investor-says-it-has-no-influence-management-2025-08-06/
