2025-07-16 23:38
July 17 (Reuters) - Australia's Santos (STO.AX) , opens new tab on Thursday narrowed its full-year forecast for output to reflect flood-related operational disruptions at Cooper Basin, one of its key producing regions, while it posted a 2.1% fall in second-quarter sales revenue. The country's second-largest gas producer — which is also the target of an $18.7 billion takeover bid led by Abu Dhabi's national oil company — now expects to produce 90-95 million barrels of oil equivalent (mmboe) in 2025, compared with its previous projection of 90-97 mmboe. Sign up here. In May, more than 200 wells in the Cooper Basin were "underwater" due to flooding in South Australia, which resulted in a 15% decline in output, according to the firm's chief. Santos reported sales revenue of $1.29 billion for the three months ended June 30, compared with $1.31 billion a year earlier and the Visible Alpha estimate of $1.23 billion. https://www.reuters.com/business/energy/australias-santos-narrows-2025-production-forecast-cooper-basin-floods-weigh-2025-07-16/
2025-07-16 22:57
WASHINGTON, July 16 (Reuters) - U.S. President Donald Trump said he would love for Federal Reserve Chair Jerome Powell to resign but acknowledged that many have said it would disrupt the markets if the president were to remove him. Trump made the comments in an interview with the Real America's Voice network aired on Wednesday. Sign up here. WHY IT'S IMPORTANT Trump has criticized Powell on an almost daily basis in recent days for being "too late" to cut interest rates. The White House and some Republicans have recently expressed criticism of cost overruns in a $2.5 billion renovation of the Fed's historic headquarters in Washington. The criticism has confirmed the view that the Trump administration is actively exploring those costs as a possible avenue to try to fire the Fed chief well before his term as chair ends in May 2026. There has been no evidence of fraud, and the Fed has pushed back on criticism of its handling of the project. KEY QUOTES "I'd love if he wants to resign, that would be up to him. They say it would disrupt the market if I did," Trump said in the interview in which he later reiterated criticism related to the costs of the renovation of the Fed's headquarters. A Fed spokesperson had earlier pointed to Powell's repeated statements that he has no intention of resigning and would not if asked to do so. CONTEXT Powell, who was nominated by Trump in late 2017 to lead the Fed and then nominated for a second term by then-President Joe Biden four years later, has said he intends to serve out his term as Fed chief, which ends on May 15. Trump said earlier on Wednesday he is not planning to fire Powell. https://www.reuters.com/world/us/trump-says-he-would-love-fed-chair-powell-resign-2025-07-16/
2025-07-16 22:34
MEXICO CITY, July 16 (Reuters) - Walmart's Mexico and Central America unit (WALMEX.MX) , opens new tab reported a 10% decrease in its second-quarter net profit on Wednesday, below analysts' forecasts, citing a slower-than-anticipated recovery in consumer spending even as its sales rose 8%. Net profit was 11.23 billion pesos ($598 million) in the three months through June, below the nearly 13-billion-peso forecast of analysts polled by LSEG, while revenues rose 8% year-on-year to reach 246.25 billion pesos - slightly above analysts' estimate of 246.07 billion pesos. Sign up here. "We are starting to see a gradual pickup in sales. However, the recovery has been slower than expected with consumer confidence having mixed results in the quarter and with uncertainty still present," Walmex Chief Executive Officer Ignacio Caride said in a presentation of the results. "I am happy about the progress of our strategy even though I'm not happy with our current results," Caride said. Analysts had predicted a strong quarter for retailers, boosted by the annual Hot Sale promotional period, which began later in May this year and came after many workers received annual profit-sharing bonus payments, boosting spending power. Walmex is Mexico's largest retailer and operates Walmart and Sam's Club stores in the country as well as the low-cost supermarket chain Bodega Aurrera. During the quarter, it opened 25 new stores, mostly in Mexico. Walmex said sales growth was led by Bodega Aurrera and Sam's Club, whose "value proposition remains very relevant to our customers during these complicated times." It added that the company's own brands improved customer perception of its prices, and shoppers also embraced a campaign featuring Lilo & Stitch products, ahead of a live-action movie that released in Mexico toward the end of May. The company reiterated its forecast of 6% to 7% growth in consolidated revenue for 2025, and said it expected a gradual increase in growth in the second half of this year. "We are seeing a slower-than-expected consumption recovery, but we don't see any fundamental change in what we forecasted for the full year," Walmex's management said in a statement. ($1 = 18.7654 Mexican pesos at end-June) https://www.reuters.com/business/retail-consumer/walmarts-mexico-unit-posts-10-dip-q2-profit-even-sales-rise-2025-07-16/
2025-07-16 22:25
HOUSTON, July 16 (Reuters) - Oil major Exxon Mobil (XOM.N) , opens new tab bought Mars crude for August delivery, two sources said on Wednesday, after briefly halting purchases of the flagship offshore grade due to a zinc contamination issue. The zinc contamination in the Mars crude oil stream had pushed Exxon to borrow up to 1 million barrels of crude oil from the Strategic Petroleum Reserve for its Baton Rouge refinery in Louisiana. Sign up here. The start-up of an offshore well caused the zinc contamination in Mars crude, Chevron (CVX.N) , opens new tab said last week. Chevron was actively working to resolve the issue, the company said on Tuesday. Exxon and Chevron did not immediately reply to requests for comment on Wednesday. The crude grade was trading at a 30-cent discount to U.S. crude at the Cushing, Oklahoma, hub, due to the persistent quality issue. That compared with a $1 premium at the end of June. https://www.reuters.com/business/energy/exxon-restarts-purchases-mars-crude-after-brief-pause-over-zinc-issues-sources-2025-07-16/
2025-07-16 21:59
Australia nears deal with China to ship five trial canola cargoes Shipments will total 150,000-250,000 tons, industry sources say Phytosanitary rules have restricted Australia's canola exports to China Australian canola prices may rise with increased Chinese demand CANBERRA/BEIJING, July 16 (Reuters) - Canberra is close to an agreement with Beijing that would allow Australian suppliers to ship five trial canola cargoes to China, sources familiar with the matter said, a move towards ending a years-long freeze in the trade. China, the world's largest canola importer, sources nearly all of its imports from Canada but those supplies could be limited by an anti-dumping probe Beijing is conducting. China imposed 100% tariffs on Canadian canola meal and oil this year amid strained diplomatic ties. Sign up here. Australia, the second-largest canola exporter, has been shut out of the Chinese market since 2020, mainly due to Chinese rules to stop the spread of fungal plant disease, but the trial cargoes could reopen trade and reduce Canada's market share. Chinese and Australian officials are finalising a framework to address Beijing's phytosanitary requirements aimed at preventing the spread of blackleg disease, according to two Australian agriculture industry sources briefed on the negotiations. "It looks like we've found a pathway that works for everyone," said one of the sources. "Now we need to run a few ships and see if it all works." The five trial cargoes will be handled by trading companies once the framework is agreed, the sources said. Two trading company sources familiar with the negotiations said the shipments would carry between 150,000 and 250,000 metric tons of Australian canola, also known as rapeseed, to China. The sources declined to be named as they were not authorised to speak publicly on the matter. In response to a query from Reuters, Australia's agriculture ministry said: "This is an active and ongoing government-government discussion and details have not yet been finalised." China's Ministry of Commerce and General Administration of Customs did not immediately respond to a request for comment. China has bought an average of 4 million metric tons of canola, worth over $2 billion, each year for the last five years, for use in cooking oil, renewable fuels, and animal feed. Australian Prime Minister Anthony Albanese is currently visiting China, underscoring a warming of ties since his Labor government won power in 2022. The planned shipments follow smaller test deliveries last year, when Australia exported 500 tons of canola to China in both June and July 2024, according to Australian trade data. The negotiations have focused on addressing China's requirement that canola shipments contain less than 1% admixture — impurities such as chaff and broken seeds - and its concerns of blackleg contamination, the two sources briefed on the talks said. Unlike Canadian exporters, who clean their canola before shipping, Australian suppliers often exceed this limit. Additional demand from China should lift Australian canola prices, traders said, but Australia may not be able to fully replace Canadian canola in China. The Australian government expects the upcoming harvest later this year to produce 5.7 million tons of canola, the least in five years, due to unfavourable weather and a smaller planted area. Of that, Australia will likely export around 4 million tons of canola, much of which may be earmarked for longstanding customers in Europe and elsewhere, said one of the trade sources. "China might struggle to get more than their trial volume depending on how quick they move," the person said. China had 159,000 tons of imported canola in its stockpiles as of July 4, the lowest level for this time of year in nearly four years, said Zhang Deqiang, an analyst at Shandong-based Sublime China Information. https://www.reuters.com/world/china/australia-nears-breakthrough-canola-deal-with-china-sources-say-2025-07-16/
2025-07-16 21:39
NAPERVILLE, Illinois, July 16 (Reuters) - Chicago corn futures hit contract lows yet again this week and soybeans have been flirting with single-digit prices as ample U.S. harvests are on the docket. December corn still hovers just above last year’s levels and November soybeans are at five-year lows for the date. But adjusting for inflation puts month-to-date averages for both corn and soybeans at the lowest July levels since 2006. Sign up here. This grim milestone comes as U.S. exporters struggle to defend their once-impenetrable global grain and oilseed market share against ever-expanding Brazilian production. Sagging prices are especially painful for U.S. farmers since input costs remain relatively high. Corn prices have tumbled at least 30% since mid-2022, both in nominal and adjusted terms. But the national average cost to produce corn this year is only 3% lower than in 2022, and 11% lower if inflation is considered. This means that $4-per-bushel corn is not the same as the years-ago $4 corn, even though current U.S. supply predictions are historically modest. 2006 BENCHMARK So far this month, CBOT December corn and November soybeans have averaged $4.21 and $10.20 per bushel, respectively. That compares with full-month 2024 averages of $4.12 and $10.67. U.S. data on Tuesday showed the June Consumer Price Index up 2.7% on the year, lifting the average July 2024 corn price to $4.23 in real terms, just above the current levels and matching July 2020’s adjusted price. In nominal dollars, there have been 11 Julys since and inclusive of 2006 in which average corn prices were lower than the current ones. But inflation-adjusted, today’s $4.21 is the lowest since $4.19 per bushel in 2006 ($2.65 nominal). There have been nine Julys since 2006 in which nominal soybean prices were lower than this month’s running average of $10.20. Once again, after adjustment, this is the lowest since 2006 ($9.74 per bushel; $6.15 nominal). Both corn and soybeans have enjoyed a bounce so far this week. But prices are well off yearly highs set back in February, when insurance guarantees to U.S. farmers are set for the upcoming harvest. However, price weakness since then has not been out of the ordinary, a potentially unfriendly factor for hopeful bulls. December corn so far this month is trading 10% lower than the average February price, a smaller loss than in the previous two years. November soybeans are about 3% lower than in February, though larger declines were observed over this period in four of the last seven years, including 2024. JUSTIFIED BY SUPPLY? The U.S. Department of Agriculture predicts 2025-26 U.S. corn ending stocks to rise 24% on the year. This follows a projected 24% decline throughout 2024-25, which ends on August 31. A year ago, a 12% increase was projected for 2024-25, similar to the comparable 2020-21 forecast for an 18% rise. Recall that adjusted corn prices in July 2020 and 2024 were nearly identical with the current ones, at least partly validating the current supply-price dynamic. The argument is weaker when comparing the volumes. Predicted 2025-26 corn carryout of 1.66 billion bushels is 21% and 37%, respectively, below the 2024-25 and 2020-21 outlooks at this same point. But the market may very well be trading a 2025-26 carryout closer to 2 billion bushels given the huge upside considerations for corn yield, aiding the case for low prices. 2025-26 U.S. soybean ending stocks are pegged to fall 11% on the year, the first year-on-year supply decline projected in July since 2020 (-32%). A 24% reduction was predicted in July 2019, though the adjusted average soybean prices during those two Julys exceed $11 per bushel. The July predictions for 2019-20 and 2020-21 U.S. soy carryout, 795 million and 425 million bushels, respectively, safely exceed the 2025-26 estimate of 310 million. This could be a supportive factor for bean prices, particularly if August weather forecasts turn unfavorable. Karen Braun is a market analyst for Reuters. Views expressed above are her own. Enjoying this column? Check out Reuters Open Interest (ROI) , opens new tab, your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI , opens new tab can help you keep up. Follow ROI on LinkedIn , opens new tab and X. , opens new tab https://www.reuters.com/markets/commodities/chicago-corn-soybeans-sink-effective-19-year-lows-2025-07-16/
