2024-11-14 12:40
MOSCOW, Nov 14 (Reuters) - Russian farmers appear to be changing their habit of withholding excess grain for better times amid low global prices, as high interest rates make it attractive to cash in and deposit money in banks at home, analysts said. The Russian central bank hiked its key interest rate to 21% last month, the highest level in more than 20 years, as it fights inflation in the overheated economy. Many banks are now offering short-term deposits with interest rates of up to 25%. "It is easier to sell grain right away, put it in a bank at over 20%, and forget about it," Dmitry Rylko, head of the IKAR agriculture consultancy, said. "No one is holding anything back here, quite the opposite. This year, we have no incentives to hold on to it, which is why we had such a large export," he added. In analysts' view, the possibility of further hikes in wheat export duty in recent weeks, on top of recent sharp rises, also outweighed the benefits of holding back stocks. While in many regions of the world, farmers are reluctant to sell grain at current prices, Russian sales are proceeding at a near-record pace, with domestic stocks falling and firms turning to state auctions to buy more grain for exports. WHEAT RESERVES 'SHARPLY DECREASED' According to Sovecon consultancy, current Russian wheat stocks were down 14% to 38.7 million metric tons as of Oct. 1, compared with last year?. The stocks were up 21% year-on-year in the second quarter. "The wheat reserves have sharply decreased compared to the previous quarter due to low production levels of Russian wheat and active exports," the consultancy said. Russia's seaborne grain exports rose 11% year-on-year in October to 6.3 million metric tons, and so far this year are up 2.1% on the same period of 2023, according to shipping data obtained by Reuters. Analysts estimate that Russia has already shipped about 45% of its grain export potential for the current season, which is estimated officially at 55-57 million tons. The agriculture ministry forecasts this year's grain harvest at 130 million tons, following months of bad weather. This figure represents a 12% decrease from 148 million in 2023 and an 18% reduction from a record 158 million tons in 2022. Earlier this year, when early spring frosts and then drought inflicted heavy losses on the Russian harvest, some farmers considered holding back sales until global prices rebound. “Poor harvest years in agriculture occur periodically, so to get through them, a rise in prices is needed. We are waiting,” Konstantin Yurov, a farmer from the Krasnodar region, said in August. Sign up here. https://www.reuters.com/markets/commodities/russian-farmers-rush-sell-grain-profit-high-interest-rates-2024-11-14/
2024-11-14 12:17
Nov 14 (Reuters) - Italian energy company Erg (ERG.MI) , opens new tab on Thursday lowered its full-year core profit guidance, citing the impact of exceptionally low wind levels in the third quarter. It now expects full-year earnings before interest, tax, depreciation and amortisation (EBITDA) between 520 and 560 million euros ($547-589 million), down from 520-580 million euros in its previous guidance. The group confirmed a forecast of capital expenditure between 550-600 million euros and net financial debt of 1.75-1.85 billion euros for 2024. Erg's quarterly adjusted EBITDA rose 4% to 109 million euros, it said in a statement. The Italian group said it would launch a share buyback programme for up to 23 million euros. ($1 = 0.9498 euros) Sign up here. https://www.reuters.com/business/energy/erg-cuts-full-year-core-profit-guidance-after-low-wind-levels-q3-2024-11-14/
2024-11-14 12:09
BRUSSELS, Nov 14 (Reuters) - The European Parliament sought on Thursday to water down a ban on the import of commodities such as beef and soy linked to deforestation, and backed a one year delay to the new rule, in a fresh push-back against the EU's environmental agenda. The European Commission proposed a 12-month delay until December 2025 last month after complaints from a group of 20 EU countries, some companies and non-EU countries such as Brazil, Indonesia and the United States. However, it did not propose any changes to the substance of the law, a position backed by European Union governments. The parliament's narrow vote to add a new 'no risk' category of countries with far lighter controls adds to uncertainty over the EU deforestation regulation (EUDR) as lawmakers will have to enter negotiations with EU governments to find a compromise. It also threatens to create divisions among mainstream parties as they seek to approve the formation of a new European Commission. The amendments to weaken the law were proposed by the centre-right European People's Party and passed with support from far-right lawmakers. Environmental campaign groups said the vote was a terrible signal as world leaders meet in Azerbaijan to increase climate commitments. Some called on the Commission to withdraw its proposal to delay the law. Julia Christian, campaigner at Fern, said the amendment changing risk ratings would give EU forested countries a free pass and was "particularly egregious". "This is a blatant case of green protectionism, which will only inflame anger among producer countries outside the EU," she said. The EUDR, which was due to take effect from Dec. 30, aims to ensure that products sold in Europe from cattle, cocoa, coffee, palm oil, rubber, soy and wood do not contribute to deforestation, so that EU consumers are not contributing to the destruction of forests from the Amazon to Southeast Asia. The law also applies to European farmers. The EUDR was hailed as a landmark in the fight against climate change, but many emerging countries say it is protectionist and could exclude millions of poor, small-scale farmers from the EU market. Some companies, such as Nestle and Mars, have backed the law, but urged the EU to do more to help firms meet the deadline. Sign up here. https://www.reuters.com/business/environment/european-parliament-approves-one-year-delay-eu-anti-deforestation-law-2024-11-14/
2024-11-14 11:51
JOHANNESBURG, Nov 14 (Reuters) - South Africa's rand firmed slightly on Thursday after four days of losses as the dollar benefited from Donald Trump's U.S. election win. At 1519 GMT, the rand traded at 18.2275 against the dollar , about 0.1% firmer than its previous close. The rand has traded turbulently, having lost almost 5% against the greenback, since the U.S. election last week, with investors expecting Trump's policies to bring higher short-term economic growth and also potentially inflationary pressures. Potential policy changes include tariffs and tax cuts. "Volatility will likely remain the order of the day as markets grab at anything they can get a hold of regarding prospective U.S. policymaking under Trump," said Danny Greeff, co-head of Africa at ETM Analytics. An improvement in South African mining output in September did little to support the rand on Thursday. The output rose 4.7% year-on-year in September from 0.3% in August, Statistics South Africa data showed. On the Johannesburg stock market, the blue-chip Top-40 index (.JTOPI) , opens new tab closed flat. South Africa's benchmark 2030 government bond was little changed, with the yield at 9.145%. Sign up here. https://www.reuters.com/markets/currencies/south-african-rand-stable-after-big-losses-mining-data-ahead-2024-11-14/
2024-11-14 11:48
CEO sees transport staying at higher levels Ongoing Suez crisis brings higher costs Company's freight rates down 9% in Jan-Sept yr/yr FRANKFURT, Nov 14 (Reuters) - Hapag-Lloyd's (HLAG.DE) , opens new tab CEO said on Thursday he expects continued strength in container shipping volumes, which are driven by global demand for transporting goods and seen as a proxy for trade and a health barometer for the world economy. The volume of twenty-foot equivalent (TEU) containers moved by its 292 ships rose to 9.3 million metric tons in the nine months from January to September, up 5% from 8.9 million in the same period a year ago, the German company said. "I don't see much of a change there in the fourth quarter," Hapag-Lloyd CEO Habben Jansen told Reuters after presenting nine-month earnings for the world's fifth largest container shipping group. Global container volumes have risen by 6.3% year-to-date, marking the highest growth rate since 2021, Hapag-Lloyd said in presentation slides for an analyst call on its results. However, increasing costs, as commercial shipping diverts around Africa to avoid disruption in the Suez Canal amid attacks by Houthi militants, contributed to a 47% fall in Hapag-Lloyd's net profit for the period, outstripping freight rate rises. Hapag-Lloyd achieved average freight rates over the nine months of $1,467/TEU, which was 9% down year-on-year. "For the time being, there is no end in sight," Habben Jansen said of the Suez crisis. That has left prospects for Hapag-Lloyd's full-year earnings near 2023 levels, although forecasts were hiked last month. Commenting on Donald Trump's U.S. presidential election win, Habben Jansen said that positive macroeconomic impulses could be countered by the damaging effects of tariffs. President-elect Trump made import tariffs a key pillar of his campaign to get back into the White House. Sign up here. https://www.reuters.com/business/autos-transportation/hapag-lloyd-ceo-expects-shipping-volume-strength-continue-2024-11-14/
2024-11-14 11:47
JOHANNESBURG, Nov 14 (Reuters) - Harmony Gold (HARJ.J) , opens new tab, South Africa's biggest gold producer by volume, said on Thursday it had appointed Beyers Nel as chief executive officer to take over from Peter Steenkamp, who is retiring. Nel, a mining engineer who has been with the Johannesburg-based gold producer since 2003, will start in his new role from Jan. 1 2025. Nel has been Harmony chief operating officer since Jan. 2023. He takes over as Harmony is planning to advance new copper projects in Australia and Papua New Guinea. Harmony is among the few remaining South African gold producers squeezing profits from ageing, costly and some of the world's deepest gold mines. The company said Nel will be deputized by Floyd Masemula, adding both will lead the miner in its "next exciting growth phase", Patrice Motsepe, the Harmony chairman said. Harmony is seeking to advance its Walfi Golpu gold-copper joint venture in Papua New Guinea, which it owns with Newmont Corp, as well its Eva copper project in Australia. The producer is among South African miners including Gold Fields and AngloGold that have shifted focus away from their home country amid declining mineral reserves in South Africa and as profits are squeezed by the high cost of producing bullion. Sign up here. https://www.reuters.com/markets/commodities/safricas-harmony-gold-appoints-insider-nel-ceo-2024-11-14/
