2024-10-07 11:30

NAPERVILLE, Illinois, Oct 6 (Reuters) - In the final week of September, speculators staged a hefty round of short covering in Chicago-traded corn and in the soybean complex, potentially reducing risk ahead of an often-unpredictable U.S. government report. CBOT corn, soybean and soybean product futures have all worked their way off recent multi-year lows, as demand recovery has also coincided with some drought-related crop concerns in major suppliers. In the week ended Oct. 1, money managers halved their net short position in CBOT corn futures and options to 67,699 contracts, their least bearish view since early August 2023. The associated short covering was the largest for any week in nearly five months. Most-active CBOT corn rose 4.2% in the week ended Oct. 1, which included the release of the U.S. Department of Agriculture’s quarterly grain stocks on Sept. 27. That report showed lighter-than-expected U.S. corn supplies as of Sept. 1, and strength in both wheat and soybeans also lifted corn futures during the period. Money managers slashed bearish views in CBOT soybean futures and options through Oct. 1 with a sixth consecutive week of short covering, although new long positions accounted for 40% of the move. That dropped their net short to an 18-week low of 34,886 contracts, down more than 40,000 on the week. Most-active CBOT soybeans were up more than 1% that week, though CBOT soybean meal surged nearly 7% while soybean oil eased 1%. SOY PRODUCTS In the week ended Oct. 1, money managers boosted their net long in CBOT soybean meal futures and options to 103,209 contracts, record-high for the date. That reflected an increase of nearly 45,000 contracts, the most for any week since March 2020. Although funds covered an abnormally large number of short meal positions, new longs accounted for 60% of the latest move. More than 27,000 gross meal longs were added through Oct. 1, a weekly record in data back to 2006. Despite the week’s price slide, money managers heavily covered short positions in CBOT soybean oil for a second week, flipping to a net long for the first time in six months. The resulting net long of 15,803 futures and options contracts compares with a net short of 18,856 a week earlier. That marked funds’ most bullish soyoil stance in nearly a year, and the optimism may have expanded further last week as futures were up another 2.5% over the last three sessions. Corn, soybean and soymeal futures eased between Wednesday and Friday as rains are forecast for parched soils in Brazil. The U.S. corn and soy harvests may pressure futures as another week of dry weather will continue to support efficient fieldwork. WHEAT AND BEYOND CBOT wheat prices this month have reached their highest levels since mid-June on multiple supply concerns. Top wheat exporter Russia is dealing with a historic drought, and weather is also threatening crops in other major exporters, including Australia and Argentina. Most-active wheat was up 3.6% in the week ended Oct. 1, and money managers trimmed their CBOT wheat net short to a two-year low of 22,953 futures and options contracts from 26,469 a week earlier. CBOT wheat futures dropped 1.5% over the last three sessions after notching new highs on Wednesday. As of Sunday, forecasts suggest winter wheat-heavy regions of Russia could be due for a decent shot of moisture in about a week. Aside from monitoring weather models, the trade this week will be anticipating USDA’s next monthly supply and demand data due on Friday. That will be headlined by U.S. corn and soybean yields, which always contain the risk for surprise. Karen Braun is a market analyst for Reuters. Views expressed above are her own. Sign up here. https://www.reuters.com/markets/europe/funds-slash-bearish-chicago-corn-bets-14-month-lows-2024-10-07/

2024-10-07 11:22

Oct 7 (Reuters) - A Russian missile hit a Palau-flagged vessel in Ukraine’s southern port of Odesa on Monday, killing a Ukrainian national and injuring five crew members in the second such attack in as many days, officials said. Ukrainian Foreign Minister Andrii Sybiha said on X that the two ships were damaged in the Black Sea grain-export hub without giving details on the ships' conditions. He condemned Russia's actions. "We must join forces of all responsible states and organisations to...ensure freedom of navigation in the Black Sea and global food security." Russia's defense ministry did not immediately respond to an email seeking comment. Moscow has repeatedly denied it attacks civilian targets. Odesa regional governor Oleh Kiper, writing on the Telegram messaging app, said the man killed in the latest attack was a port worker. The five injured men were foreign nationals and ship crew members. Deputy Prime Minister Oleksiy Kuleba identified the vessel as the Optima and said it arrived in Odesa hours before the attack. Russia "is attempting in this way to destroy shipping in the Black Sea guaranteeing food security. The consequences can only mean greater instability in sensitive regions dependent on food imports and tension in international relations," Kuleba said. Ukraine's Restoration Ministry identified the ship attacked on Sunday in the nearby port of Pivdennyi as the Saint Kitts and Nevis-flagged Paresa which had a cargo of 6,000 tonnes of corn. In a Facebook post, the ministry said the Paresa's 15-member crew, Syrian and Egyptian nationals, was not injured. The ministry said the Paresa was the 20th civilian vessel to be damaged by Russian attacks. Last month, the Saint Kitts and Nevis-flagged bulk carrier Aya was hit by a Russian missile in the Black Sea. Another vessel, an Antigua-flagged carrier, was damaged in a Russian missile strike in Odesa. Russia has struck the port repeatedly in the war since its full-scale invasion of Ukraine in February 2022. Sign up here. https://www.reuters.com/world/europe/ukraine-says-russian-missile-strike-damaged-vessel-carrying-grain-pivdennyi-port-2024-10-07/

2024-10-07 11:12

Oct 7 (Reuters) - Canada's main stock index closed lower on Monday, hit by falling utility stocks as investors scaled back expectations of a big rate cut from the U.S. Federal Reserve in November amid rising tensions in the Middle East. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab was down 60.12 points, or 0.25%, at 24,102.71. Expectations of a larger cut by the Federal Reserve have diminished after Friday's strong U.S. jobs data that allayed concerns about a slowdown in the world's largest economy. "After that stronger-than-expected jobs number on Friday, you really see a lot of the shorter-term traders and shorter-term investors take a little bit of profit, especially with the increase in geopolitical risk in the Middle East right now," said Alfred Lee, deputy chief investment officer at Toronto-based Q Wealth Partners. "Liquidity is really still in the driver seat at this point," he said. Markets currently see an 85.4% chance for a 25-basis-point rate cut by the Fed in November, with another similar-sized cut expected in December. This week, investors await U.S. Consumer Price Index (CPI) figures for clues to the Fed's policy adjustment cycle and the kickoff of third-quarter earnings season with reports from banks. Spotlight will also be on Canada's unemployment data on Friday as investors look for clues on the Bank of Canada policy decision later in the month. Among sectors, rate-sensitive utilities (.GSPTTUT) , opens new tab was the worst hit with a 1.75% decline, hurt by nearly 5% drop in shares of energy provider Emera (EMA.TO) , opens new tab, while the materials sector (.GSPTTMT) , opens new tab also fell significantly. The energy sector (.SPTTEN) , opens new tab gained 1.8%, continuing its rally as oil prices extended gains on fears of a wider Middle East conflict causing potential disruption to exports from the region. Shares of TD Bank (TD.TO) , opens new tab rose 0.5% after analysts at Cormark Securities raised their target price, making it the only big six bank to end in the green on Monday. Sign up here. https://www.reuters.com/markets/tsx-futures-inch-lower-ahead-data-heavy-week-2024-10-07/

2024-10-07 11:11

LONDON, Oct 7 (Reuters) - Hedge fund Elliott Associates on Monday lost an appeal against the dismissal of its lawsuit against the London Metal Exchange over billions of dollars of cancelled nickel trades, which judges said were vital for the stability of the overall market. The LME suspended trading and annulled $12 billion in nickel trades in March 2022 when prices doubled to records above $100,000 a metric ton in a few hours of chaotic trade. Elliott sued the LME at London's High Court and its case was dismissed in November 2023. Elliott's bid to overturn that decision was rejected by the Court of Appeal on Monday. Judge Stephen Males ruled that the extreme price movement on March 8, 2022 was "a once in a generation event" and that the LME acted lawfully in cancelling the trades. "There was no question of seeking to favour one cohort of traders over another. Rather the decision was taken in the interest of the market as a whole," he said in his written unanimous ruling from a three-judge panel. "To have allowed the 8th March trades to stand would have meant a real risk of what has been graphically described as a 'death spiral' in the international metals market." At a hearing in July this year, Elliott urged London's Court of Appeal to overturn the ruling partly because the exchange failed to disclose documents. Lawyers for Elliott said the LME belatedly released documents in May detailing its "Kill Switch" and "Trade Halt" internal procedures. It also newly disclosed an internal report that Elliott said detailed potential conflicts of interest at the exchange. A spokesperson for Elliott said it was disappointed with the ruling. "Elliott is further analysing the decision with its legal team and considering its next steps." Elliott and market maker Jane Street Global Trading brought a case demanding a combined $472 million in compensation, alleging at a trial in June last year that the 147-year-old exchange had acted unlawfully. The LME, the world's oldest and largest metals marketplace, welcomed Monday's ruling, which it said confirmed the exchange's power to cancel trades during extreme price movements. "Now we are focused on looking to the future as we progress our market modernisation strategy," LME Chairman John Williamson said. Elliott noted that following the events in March 2022, the LME commissioned an independent study and implemented reforms. "The public scrutiny which its challenge has brought to bear has already resulted in the LME taking numerous steps to improve its systems and processes," Elliott said. The LME is owned by Hong Kong Exchanges and Clearing Ltd (0388.HK) , opens new tab. Sign up here. https://www.reuters.com/business/hedge-fund-elliott-loses-appeal-against-dismissal-lme-nickel-lawsuit-2024-10-07/

2024-10-07 10:56

Oct 7 (Reuters) - Chevron (CVX.N) , opens new tab is selling its assets in Athabasca Oil Sands and Duvernay Shale to Canadian Natural Resources (CNQ.TO) , opens new tab for $6.5 billion, the oil giant said on Monday as it puts in motion its divestiture plan. The all-cash transaction, which is expected to close in the fourth quarter, is a part of its strategy to divest $10 billion to $15 billion of assets by 2028. The assets, located in Alberta, Canada, contributed 84,000 barrels of oil equivalent per day (boepd) of production to Chevron in 2023. The Duvernay is one of Canada's top shale plays and has seen eight deals worth $2.9 billion in the last three years, Wood Mackenzie said in January. After the deal, Canadian Natural will own 90% of the Athabasca Oil Sands project, while Shell (SHEL.L) , opens new tab owns the rest. The company said along with the Duvernay assets, it would add 122,500 boepd of its target production in 2025. It also raised its quarterly dividend by 7% to 56.25 Canadian cents per share, payable in January 2025, with its finance chief Mark Stainthorpe saying the deal will add to cash flow and earnings immediately. Canadian Natural had a long-term debt of C$9.33 billion as of June 30. Chevron, meanwhile, is looking to spend more than 75% of its production budget on U.S. shale basins, the Gulf of Mexico, the Eastern Mediterranean, Guyana, Australia and Kazakhstan. It had recently cleared an FTC review on its $53 billion deal for Hess, but will need to clear a challenge by Exxon (XOM.N) , opens new tab and CNOOC (0883.HK) , opens new tab, Hess's partners in a Guyana joint venture. A three-judge arbitration panel is set to consider the case next May. "This transaction ..helps clean up the portfolio ahead of the pending Hess closing," analysts at RBC Capital Markets said in a note, adding that they expected free cash flow to improve into 2025. Shares of Chevron were up 1.1% before the bell in a higher oil-price environment. Sign up here. https://www.reuters.com/markets/deals/chevron-sell-interests-athabasca-oil-sands-duvernay-shale-canadian-natural-2024-10-07/

2024-10-07 10:54

Oct 7 (Reuters) - India's oil minister Hardeep Singh Puri said on Monday that energy availability could be hurt if the situation in the Middle East worsens. Sign up here. https://www.reuters.com/business/energy/energy-availability-could-be-hurt-if-mideast-situation-worsens-indias-oil-2024-10-07/