2024-11-11 11:59

JAKARTA, Nov 11 (Reuters) - Consumer brands including Nestle and Procter & Gamble said they conducted investigations after an environmental group said palm oil sourced from an illegally cleared wildlife reserve in Indonesia may have found its way into their supply chains. Rainforests within the legally protected wildlife reserve had been cleared to make way for palm oil plantations during the last eight years, the U.S.-based Rainforest Action Network (RAN) said, citing satellite images that it says reveal deforestation in the area. The group shared images which it said showed stretches of cleared brown land cut into the lush green expanse of Indonesia's Rawa Singkil Wildlife Reserve, with rows of young palm trees now planted along its borders. Some images, which RAN said were taken during a field investigation in February 2024, showed that oil palm seedlings were planted on burnt ground surrounded by fallen trees inside the reserve, according to the report published on Monday. The wildlife reserve, located in Aceh province in the northwest of Indonesia's Sumatra island, has lost 2,609 hectares (6,447 acres) of forest since 2016, with palm trees now growing on 645 hectares of the cleared area, RAN said. Reuters could not independently confirm those findings. Indonesia's forestry ministry did not respond to a request for comment. RAN said its investigation, conducted in September and October, had found fresh fruit bunches from the illegal plantations were sold to mills PT Global Sawit Semesta (GSS) and PT Aceh Trumon Anugerah Kita (ATAK), both of which supplied major brands including Procter & Gamble, Nestlé, Mondelez and PepsiCo, according to the RAN report. GSS and ATAK, which are located in remote areas, could not be reached by Reuters for comment. Companies typically source palm oil from Indonesian mills through intermediaries. A Nestle spokesperson said it promptly engaged with its direct supplier regarding GSS to investigate RAN's findings, adding that, by the end of 2023, 96% of its palm oil supply was "deforestation-free". "Should there be a need to find remedies, we will take necessary action," the spokesperson said. Procter & Gamble told Reuters that it had conducted an investigation following RAN's findings and immediately suspended sourcing from both GSS and ATAK. Singapore-based Royal Golden Eagle Group (RGE), Musim Mas and Indonesian firm Permata Hijau also sourced palm oil from GSS, RAN said. Apical, an RGE unit, and Musim Mas said they were investigating RAN's findings. Permata Hijau, Mondelez and Pepsi did not respond to multiple emailed requests for comment. 'ORANGUTAN CAPITAL' Indonesia, home to the world's third largest tropical rainforest, says it reduced its deforestation rate to under 140,000 hectares annually between 2020 and 2023, down from more than 400,000 hectares in 2016-2020. However, RAN said its investigation showed that deforestation within the wildlife reserve — the country's only forest where endangered orangutans, tigers, elephants and rhinos coexist — surged fourfold in 2021-2023 compared with the previous period, despite laws banning deforestation. "The high-resolution imagery and analysis definitively show that the palm oil mills, traders, and global brands sourcing from this area have failed to end deforestation for palm oil in the 'Orangutan Capital of the World'," RAN said in its report. Green groups have frequently accused palm oil producers of illegally clearing rainforests, including protected areas and wildlife reserves, to expand their plantations. Global palm oil production has expanded over the past decade, accounting for 60% of world vegetable oil exports. Mainly produced in Indonesia and Malaysia, palm oil is used as a cooking oil and in products including biofuels, chocolates and cosmetics. Sign up here. https://www.reuters.com/business/environment/nestle-pg-investigate-palm-oil-sourcing-after-green-groups-indonesia-2024-11-11/

2024-11-11 11:44

Nov 11 (Reuters) - India's Shree Cement (SHCM.NS) , opens new tab topped second-quarter profit estimates on Monday, as higher-than-expected sales volumes helped mitigate low prices of the key construction material. The country's third-biggest cement maker by market capitalisation reported a net profit of 931.3 million rupees ($11 million) for the three months ended Sept. 30, down 81% from year-ago. Analysts were expecting a profit of 765.8 million rupees, per data compiled by LSEG. Revenue from operations fell 18% to 37.27 billion rupees, but was below analysts' average estimate of 38.91 billion rupees. For further earnings highlights, click here KEY CONTEXT Shree Cement logged a volume growth of 7% in the quarter, less than the 10% it logged in the year-ago quarter, but stronger than estimates of four analysts, who were expecting 8% drop to 3% growth. Cement makers struggled with prices hitting a five-year low and demand failing to recover from the June quarter, when elections had slowed construction and other infrastructure activities. However, the companies were upbeat about demand in the long run. Last month, market leader UltraTech Cement (ULTC.NS) , opens new tab flagged early signs of a price recovery after reporting a sharp drop in second-quarter profit and first revenue decline in four years. UltraTech's smaller rivals ACC (ACC.NS) , opens new tab and Ambuja Cements (ABUJ.NS) , opens new tab both saw higher-than-expected volume growth. PEER COMPARISON * The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT JULY-SEPTEMBER STOCK PERFORMANCE -- All data from LSEG -- $1 = 84.3570 Indian rupees Sign up here. https://www.reuters.com/markets/commodities/indias-shree-cement-beats-q2-profit-view-higher-than-expected-volume-growth-2024-11-11/

2024-11-11 11:38

TSX ends up 0.1% at 24,789.28 Tech adds 1.9%; financials end 0.9% higher Materials end down 4.1% as gold falls Nov 11 (Reuters) - Canada's main stock index edged higher on Monday as investors remained bullish following the U.S. presidential election, but gains were held in check by a sharp decline in gold mining shares. The S&P/TSX composite index (.GSPTSE) , opens new tab ended up 29.88 points, or 0.1%, at 24,789.28, moving closer to the record closing high it posted last Thursday. "The TSX is on a roll today, building on a rally sparked by Donald Trump's election victory," said Brandon Michael, senior investment analyst at ABC Funds. "Financial services, technology, and industrials are leading the market higher. These are high-beta, risk-on sectors - which is exactly what you want to see in a bullish environment for stocks." Expectations for lower corporate taxes and deregulation under U.S. President-elect Donald Trump have helped boost stocks globally in recent days. High-beta stocks include stocks that are more volatile than the market as a whole. Financials, the most heavily weighted sector on the TSX, rose 0.9% and technology was up 1.9%. Shares of e-commerce company Shopify Inc (SHOP.TO) , opens new tab climbed 3.4% ahead of the release of its quarterly earnings on Tuesday. "A big winner of Trump's election victory is the U.S. dollar, which has strengthened significantly, and that is a major headwind for commodities," Michael said. The U.S. dollar (.DXY) , opens new tab climbed to a four-month high against a basket of major currencies, while gold and copper prices fell. The materials sector, which includes metal mining shares and fertilizer companies, was down 4.1%. Energy was little changed, declining 0.04%, as oil settled 3.3% lower at $68.04 a barrel. Sign up here. https://www.reuters.com/world/americas/tsx-futures-rise-ahead-data-heavy-week-2024-11-11/

2024-11-11 11:35

Nov 11 (Reuters) - India's National Fertilizers (NAFT.NS) , opens new tab reported a profit in the second quarter on Monday as lower costs helped cushion the impact of lower product prices. The state-run agricultural chemicals maker reported a consolidated profit of 120.7 million rupees ($1.4 million) for the quarter ended Sept. 30, compared to a loss of 871 million rupees a year ago. Revenue fell 22.4% to 43.90 billion rupees, while total expenses declined 24.4% to 44.18 billion rupees. For further highlights, click KEY CONTEXT High fertiliser and agricultural chemicals inventory and destocking for the past few quarters pressured prices, hurting margins of agrochemical makers, analysts said. While international agrochemical demand is recovering, with higher sales volume across geographies, ample supplies from China have also curbed price increases, analysts added. Peer UPL (UPLL.NS) , opens new tab on Monday posted a wider quarterly loss hurt by pricing pressures. PEER COMPARISON * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT JULY-SEPTEMBER STOCK PERFORMANCE -- All data from LSEG -- $1 = 84.3600 rupees Sign up here. https://www.reuters.com/markets/commodities/indias-national-fertilizers-posts-q2-profit-lower-costs-2024-11-11/

2024-11-11 11:22

A look at the day ahead in U.S. and global markets from Mike Dolan The dollar continues to feed on a mix of post-election tariff and tax cut speculation, China's struggle with deflation and Germany's simmering political crisis - with the euro plumbing its lowest levels in almost five months. Even with bond markets effectively shut on Monday for the Veteran's Day holiday, the dollar built on last week's election-related surge - spurred by Friday's reports, later denied by other sources, that protectionist Robert Lighthizer had already been asked to be President-elect Donald Trump's new trade chief. During Trump's first term, Lighthizer was a key figure behind tariffs on Chinese imports and the renegotiation of the North American Free Trade Agreement with Mexico and Canada. With the final results of the House Of Representatives elections still awaited but widely expected to complete a Republican 'clean sweep' of White House and Congress, attention has now switched to names of the unfolding Trump team. Ironically, while Trump tariff speculation is seen as a dollar positive, Lighthizer is also seen as a big advocate of a weaker dollar to aide trade competitiveness and reports earlier in the year said he and others were seeking ways to devalue the currency. Yet, with only vague ideas of how that could be engineered, the market seems happy just to lean toward a straight tariff read-across instead and the dollar index (.DXY) , opens new tab rose to within a whisker of last week's 4-month highs on Monday. Prominent investor Scott Bessent met with Donald Trump on Friday, meantime, as he and fellow investor John Paulson emerge as leading candidates for the key role of Treasury Secretary. Leading the retreat against the dollar were the euro and China's offshore yuan , the latter hit by yet another wave of investor disappointment at Beijing's debt-raising stimulus plans on Friday and then the worryingly sub-forecast weekend inflation news there. China's consumer prices rose at the slowest pace in four months in October at an annual rate of just 0.3% - while producer price deflation deepened to as much as 2.9% in the year through last month. Offset by U.S. tariff fears, markets were under-whelmed by the latest stimulus from the country's top legislative body, which approved a 10 trillion yuan ($1.4 trillion) package on Friday to ease local government "hidden debt" burdens. But new bank lending in China fell more than expected in October from the previous month and trailed behind analysts' expectations as the latest wave of policy stimulus has failed to boost credit demand. Hong Kong's benchmark Hang Seng Index (.HSI) , opens new tab fell more than 1% on Monday to its lowest since Oct. 18, although mainland shares (.CSI300) , opens new tab eked out a modest gain. GERMAN GOVERNMENT CRISIS The euro was the other mover, dragged by both fears of universal tariffs and the backwash from any direct hit to Chinese demand as well as an unfolding German political crisis that could see snap elections there early in the new year. German Chancellor Olaf Scholz and Trump spoke on Sunday evening to exchange views on bilateral relations and geopolitical challenges, but Scholz had more pressing issues at home and said he would be willing to call a vote of confidence in parliament before Christmas. That timing is earlier than the January date he had proposed last week, suggesting the March timeline for an election could be brought forward too. Taking in the combination of U.S. and China risks for the European economy since last week's Trump victory, Deutsche Bank cut its forecast for the 'terminal' European Central Bank interest rate in this cycle by half a point to 1.5%. European stocks (.STOXXE) , opens new tab, meantime, were up about 1% on Monday. Back on Wall Street, so-called 'Trump trades' continue to play out. Bitcoin soared to a record high above $81,000 on Monday on expectations the crypto industry will boom in a favourable regulatory environment during a Trump administration and as pro-crypto candidates get elected to Congress. And U.S. stock futures continued to push higher ahead of today's open after Friday saw the S&P500 (.SPX) , opens new tab nose above 6,000 for the first time ever. Alongside the focus on the new political team in Washington, markets will this week home in on the October consumer price and retail sales reports and the tail end of another forecast-beating corporate earnings season. While the Federal Reserve delivered another quarter-point interest rate cut as expected last week, the jury remains out on the extent to which Trump's tariffs and tax cuts aggravate the inflation picture ahead. Only three more quarter-point rate cuts are now fully priced by the end of next year - 100 basis points less that the Fed itself had been indicating only in September. Key developments that should provide more direction to U.S. markets later on Monday: * Veterans Day Holiday shuts U.S. Federal offices, cash bond market. Stock market remains open * Mexico September Industrial Output, October consumer confidence * US corporate earnings: Live Nation Entertainment Sign up here. https://www.reuters.com/markets/us/global-markets-view-usa-2024-11-11/

2024-11-11 11:02

Drought delays ranchers' plans to expand herds High cattle prices and lack of pasture force early feedlot deliveries Tyson Foods' beef business faces losses due to tight cattle supplies CHICAGO, Nov 11 (Reuters) - The return of drought in U.S. cattle-producing areas is delaying ranchers' plans to expand production after the nation's herd shrank to its smallest level in seven decades, farmers and analysts said. Tight cattle supplies are squeezing meatpackers, including Tyson Foods (TSN.N) , opens new tab, which reports quarterly earnings on Tuesday, and consumers facing high beef prices. Meat producers had hoped rains would encourage ranchers to begin rebuilding herds in 2024 after years of drought burned up pastures and forced farmers to send more cows to slaughter. Dryness has instead worsened over the past two months in another blow to processors that must pay up to buy limited cattle supplies. Across the United States, 62% of cattle were in areas suffering from drought at the end of October, the most since December 2022, according to the U.S. Drought Monitor. More than half the herd remained in drought zones last week after rains hit the Plains, up from less than 20% for most of the year and just 8% in June. In Nebraska, the nation's second-biggest cattle-producing state, rancher Chad Engle said dryness has reduced sprawling pastures to yellow, brittle stubble and unleashed plumes of dust into corrals that make his cattle cough and wheeze. "We had plans to expand our herd but we cannot do that in the teeth of a drought," said Engle, adding that he culled 10% more of his herd than normal last year. Ranchers in Oklahoma, the fifth-largest U.S. cattle producer, often sow wheat in September but drought delayed plantings, depriving ranchers of weeks of grazing. "Drought is the reason why the herd size has come down so much and it's the only thing holding back ranchers from expanding the herd," Morningstar equity strategist Kristoffer Inton said. The lack of pasture and high cattle prices have prompted ranchers to send female cows, or heifers, and young calves to feedlots sooner than normal to be fattened on grain. With fewer heifers held back on farms to reproduce, an expansion of the herd remains years away, analysts said. The spike in cattle costs is hurting meatpackers such as Tyson, whose beef business, its largest unit, swung to a loss in the third quarter. The loss is expected to widen in the fourth quarter, according to investment research firm CFRA, which predicted negative margins of 2.2%. Early deliveries of heifers and young cattle to feedlots will skew beef production in 2025 toward the first half of the year and result in an even smaller supply in the second half, said Derrell Peel, Oklahoma State University agricultural economist. Sign up here. https://www.reuters.com/business/environment/return-us-drought-delays-cattle-herd-rebuilding-hurting-tyson-foods-2024-11-11/