2025-09-10 19:16
SAO PAULO, Sept 10 (Reuters) - Greening disease, caused by bacteria transmitted by the Asian citrus psyllid, has infected nearly 48% of Brazil's citrus belt, according to new data from industry-funded research group Fundecitrus on Wednesday. Such infections have increased for an eighth year in Brazil, the world's largest orange producer and orange juice exporter, hurting orange production, Fundecitrus said. Sign up here. In the 2024/2025 season, Brazil's orange output is estimated at 230.9 million 40.8 kilogram boxes, the smallest in several years, Fundecitrus said. Although orange groves were expected to recover, the severity of greening is taking a toll on trees. In May, Fundecitrus had forecast Brazil's orange production in 2025/2026 would reach 314.6 million boxes, but on Wednesday it cut the forecast by 2.5% to 306.74 million boxes. In the United States, Florida has also grappled with citrus greening disease for more than a decade, shrinking the state's output. The disease also made the U.S. more dependent on orange juice imports from Brazil. The infected trees produce fruits that are green, misshapen and bitter, unsuitable for sale as fresh fruit or for juice. According to CropLife Latin America, a trade group representing chemical firms, the disease has caused $120 million in losses each year in Brazil. Greening is believed to be responsible for the death of more than 50 million trees in Asia and 10 million in Africa over the last seven years, CropLife's website said. In Brazil, favorable weather conditions for the proliferation and survival of the bacteria have made greening a persisting problem. Sao Paulo and Minas Gerais state comprise Brazil's main citrus belt. https://www.reuters.com/business/environment/bacterial-greening-disease-infects-nearly-half-brazils-citrus-belt-2025-09-10/
2025-09-10 19:03
US producer prices slip month-on-month in August US rate futures price in 25-bp later this month With PPI out of the way, consumer price index is next NEW YORK/LONDON, Sept 10 (Reuters) - The U.S. dollar was narrowly mixed on Wednesday, with no definitive direction, after data showed producer prices unexpectedly fell in August, cementing expectations that the Federal Reserve will resume cutting interest rates later this month. The dollar was slightly down against the yen at 147.31 following the data, while the euro was flat at $1.1706 . Before the data, the U.S. currency was trading moderately up on the day against both currencies. Sign up here. A Labor Department report showed the Producer Price Index for final demand fell 0.1% on a monthly basis, after a downwardly revised 0.7% jump in July. Economists polled by Reuters had forecast the PPI would rise 0.3% after a previously reported 0.9% surge in July. But the PPI advanced 2.6% on an annual basis in August, compared with a 3.3% gain expected by economists polled by Reuters. "Odds on a half-point move have risen, but remain extremely low. The economy has slowed, but isn't showing signs of crashing, and may even accelerate in the months ahead," said Karl Schamotta, chief market strategist, at Corpay in Toronto. "Inflation pressures seem subdued, but risks are tilted to the upside. For most market participants, a quarter-point move remains the most plausible base case." Following the data, fed funds futures are pricing in a 90% chance of a standard 25-basis-point cut this month and a 10% chance of 50-bp rate decline, according to the CME's FedWatch. That was at 93% and 7%, respectively, late on Tuesday. With PPI out of the way, investors are now focused on the consumer prices index for August due out on Thursday. A Reuters poll showed headline CPI of 0.3% last month and a year-on-year rise of 2.9%. Meanwhile, there was no shortage of geopolitical tension overnight that spilled over to Wednesday. Israel's attempted killing of Hamas leaders with an airstrike on Qatar on Tuesday, along with Poland shooting down drones that entered its airspace during a Russian attack in western Ukraine on Wednesday, were keeping investors nervous. The euro rose 0.3% against the Polish zloty to 4.259 zloty, and set for its biggest one-day rise since August 11 . The dollar index , which measures the U.S. currency against six others, was down slightly at 97.74. It has fallen by 10% this year, dented by chaotic U.S. trade and fiscal policy and by growing concern about the independence of the central bank. Markets, meanwhile, showed little reaction to a court ruling that temporarily blocked President Donald Trump from removing Fed Governor Lisa Cook, a case that is likely to end up before the U.S. Supreme Court. Data on Tuesday also showed the economy likely created 911,000 fewer jobs in the 12 months through March than previously estimated, suggesting jobs growth was already stalling before Trump's aggressive tariffs on imports. The data did not offer much insight into job creation since March, leaving U.S. rate expectations unchanged for now. https://www.reuters.com/world/middle-east/us-dollar-mixed-markets-eye-fed-cuts-after-soft-inflation-data-2025-09-10/
2025-09-10 18:33
US producer prices slip in August Gold hit record high of $3,673.95/oz on Tuesday US CPI data due at 8:30 ET on Thursday Sept 10 (Reuters) - Gold hovered near all-time highs on Wednesday, supported by expectations that the Federal Reserve will resume rate cuts at next week's meeting, following softer-than-expected U.S. inflation data. Spot gold was up 0.6% at $3,647.94 per ounce, as of 2:18 p.m. EDT (1817 GMT), after hitting a record high of $3,673.95 on Tuesday. Sign up here. U.S. gold futures for December delivery settled flat at $3,682. U.S. producer prices unexpectedly fell in August, pulled down by a decline in the costs of services, Labor Department data showed. "Any further weakness in U.S. data should continue to support gold in the view that more than two rate cuts could be on the way before the year is out," said Fawad Razaqzada, market analyst at City Index and FOREX.com. Gold, traditionally seen as a hedge against political and economic uncertainty and inflation, also tends to do well in low-interest rate environments. It has risen more than 39% this year. Markets are pricing in a 90% probability of a quarter-point cut at the Fed's September 16-17 meeting, with slim odds on a larger cut, CME's FedWatch tool , opens new tab showed. Market confidence in easing was reinforced after last week's soft nonfarm payrolls report, which pointed to cooling labor market conditions. The Labor Department also revised down job growth estimates through March, suggesting job growth was already slowing before U.S. President Donald Trump's aggressive tariffs on imports. Meanwhile, a federal judge on Tuesday temporarily blocked Trump's attempt to remove Federal Reserve Governor Lisa Cook, an early setback for the White House in a legal fight that threatens the central bank's independence. Attention now turns to Thursday's consumer price index reading, seen as pivotal in shaping the Fed's policy stance. "The $3,750 mark is emerging as the next significant resistance, and a consolidation above it could see the precious metal approach $3,900 by year-end," Ricardo Evangelista, senior analyst at ActivTrades said. Elsewhere, spot silver added 0.8% to $41.21 per ounce. Platinum gained 1.7% to $1,391.80 and palladium rose nearly 3% to $1,180.81. https://www.reuters.com/world/india/gold-near-record-highs-softer-inflation-data-fuels-fed-cut-bets-2025-09-10/
2025-09-10 18:32
ATHENS, Sept 10 (Reuters) - U.S. oil major Chevron (CVX.N) , opens new tab has submitted a bid to explore for natural gas in four blocks offshore Greece in a consortium with Greece's Helleniq Energy (HEPr.AT) , opens new tab, Greece's Energy Minister Stavros Papastavrou said on Wednesday. The country launched the tender this year after Chevron and oil refiner Helleniq Energy expressed interest in four deep-sea blocks off the Peloponnese peninsula and the island of Crete. Sign up here. The deadline for bids was at 1700 (1400 GMT) on Wednesday. A Chevron spokesperson confirmed the bid for the four blocks. "Chevron has a large and important position in the Eastern Mediterranean, a region which is very much a part of our future and a priority for us." Greece, which produces very small volumes of oil, has ramped up renewables output in recent years but still relies heavily on gas for power generation. The country aims to tap domestic resources as part of a European Union push to shift away from Russian energy after Moscow invaded Ukraine. Major gas finds off Egypt, which lies south of Crete, have sparked hopes that Greek waters could also contain significant gas reserves. The area off Crete borders two licensed blocks where an ExxonMobil-led consortium has been seismic data before taking any final decision on test drilling. (This story has been corrected to say 'Helleniq Energy,' not 'Hellenic Energy,' in paragraphs 1 and 2) https://www.reuters.com/business/energy/chevron-bids-tender-gas-exploration-offshore-greece-2025-09-10/
2025-09-10 18:24
U.S. to sell $22 billion in 30-year bonds on Thursday Lack of appetite globally for long end of curve August auction saw weak demand NEW YORK, Sept 10 (Reuters) - Investors are cautiously approaching the U.S. Treasury's sale of $22 billion in 30-year bonds on Thursday after an underwhelming auction last month that had some of the weakest demand metrics of 2025, though some believe it could be different this time. The auction size is $3 billion smaller than that in August and could be easier to absorb, which could be an advantage, analysts said. Sign up here. However, the 30-year bond sale comes amid global disdain for the long end of the yield curve as worries about fiscal deficits, an age-old issue, continue to grip sovereign debt markets. The U.S. Treasury market - widely regarded as the cornerstone of the global financial system - has come under pressure amid mounting concerns over the high national debt, the inflationary impact of tariffs and growing unease about the Federal Reserve's independence. "The long end remains a singled-out segment, particularly the 30-year, where any problem that arises, investors' knee-jerk reaction has been to sell it," said Guneet Dhingra, head of U.S. rates strategy at BNP Paribas, in New York. "That dynamic, plus the fact that global long-end bond markets from Japan to the UK are flashing amber or red, is going to keep the long end of the U.S. curve under pressure." In last month's auction, the bid-to-cover ratio, a measure of investor demand, was 2.27, the lowest level since November 2023. End-user demand, which combines both indirect and direct bids, slumped to 82.5%, the worst since August 2024. Direct bidders in Treasury auctions are firms, such as pension funds and hedge funds, who submit bids for their own investment accounts directly to the U.S. Treasury. Indirect bidders, on the other hand, are investors who submit competitive bids through an intermediary, such as a primary dealer or a financial institution. These bidders also include foreign investors. That said, August is typically "seasonally negative" for 30-year supply, said Vail Hartman, U.S. rates strategist at BMO Capital. Since 2009, he noted that just one 30-year bond auction in August managed to go smoothly and that was in 2014. Overall, long-dated U.S. government debt continued to face headwinds, with the five-year/30-year yield curve steepening to 126 basis points last Friday — its widest level in more than four years . The move signaled persistent selling pressure on 30-year bonds, driving yields higher as investors reassessed the outlook for long-term rates. The curve has flattened a little bit this week as investors reduced their steepening positions ahead of Thursday's 30-year auction. "We'll be curious to see the reception to longer-dated supply at a moment when duration has proved to be a continuous underperformer on the curve," wrote BMO in a research note. DIFFERENT THIS TIME? But perhaps it could be different this time around, analysts said, especially as the Fed has shifted to a more dovish tone since the central bank gathering in Jackson Hole, Wyoming, on August 22. "With two very weak U.S. jobs reports, the market is much more confident about the slower growth sentiment," said Will Compernolle, macro strategist at FHN Financial in Chicago. "So the rally (in Treasuries) that we've seen in the 30-year since last Wednesday is on much firmer ground." The 30-year yield has declined by 28 basis points since last Wednesday, when it briefly topped 5% for the first time since mid July, and was last little changed at 4.719% / The selloff that lifted the long-bond yield to 5% immediately drew buyers. The long bond sale could also see support following a stellar $58 billion U.S. three-year note auction on Tuesday and another solid sale of $39 billion in benchmark 10-year notes on Wednesday. The well-subscribed three-year note sale offset the disappointing results from August. It had good support from indirect bids which took 74.2% of supply, up from 54.0% in the previous auction. For the 10-year note auction, the bid-to-cover of 2.65 was strong, higher than the 2.35 last month and the 2.61 in July. Indirect bidders were awarded a huge 83.1% of supply, well above the prior 64.2% and the second largest on record. https://www.reuters.com/business/investors-wary-treasurys-30-year-bond-auction-after-recent-disappointments-2025-09-10/
2025-09-10 18:10
Sept 10 (Reuters) - The White House update to its tariff schedule is a "welcome development" after challenges caused by a recent U.S. Customs ruling on gold bars, the London Bullion Market Association said on Wednesday. The executive order, issued on September 5 by President Donald Trump, updates the tariff schedule for certain goods, including key gold products. The White House referred to them as reciprocal tariffs. Sign up here. Under the update, gold bars imported from "aligned partner" countries under certain codes of the Harmonized Tariff Schedule of the United States - including 7108.11.00, 7108.12.50, 7108.13.10, 7108.13.55, 7108.13.70, and 7108.20.00 - will face a 0% tariff on entries made after September 8, 2025. The LBMA said the move was a "significant and positive step for the industry" following uncertainty caused by a recent U.S. Customs and Border Protection ruling. Earlier in August, the CBP website suggested that widely traded gold bullion bars could be subject to country-specific tariffs, prompting some traders to pause shipments to the U.S. while awaiting clarification. But days later, on August 11, President Trump sought to calm the market, posting on his social media account that "Gold will not be Tariffed!", though he offered no further details. "LBMA will continue to monitor developments and provide further updates as needed," the association said, noting ongoing discussions with members, market infrastructure providers and authorities in the U.S., Europe and the UK on tariffs for silver. In addition to the U.S. tariff update, the LBMA has clarified the classification of kilobars under the UK's REACH chemical regulation. According to the LBMA, the UK Health and Safety Executive indicated that kilobars imported as investment products could be classified as "articles," exempting them from registration. However, kilobars supplied for manufacturing purposes, such as jewellery making, may still be considered chemical substances, LBMA added. https://www.reuters.com/business/white-house-tariff-update-gold-bars-welcome-development-lbma-says-2025-09-10/
