2025-06-26 06:49
US PCE data due on Friday Palladium climbs 7-month peak Platinum hits highest level since 2014 June 26 (Reuters) - Gold prices held steady on Thursday as investors awaited U.S. inflation data to gauge the interest rate outlook and kept an eye on the Middle East as geopolitical tensions eased, while palladium and platinum saw sharp rises. Spot gold was flat at $3,333 per ounce, as of 0227 p.m. ET (1827 GMT). Sign up here. U.S. gold futures settled 0.2% higher at $3,348. "Gold has declined over the past few sessions due to de-escalation in the Middle East. Also, adding pressure was the anticipated interest rate cut, eagerly awaited by the market that continues to be delayed, amid rising inflation expectations driven by Trump-era tariffs," said David Meger, director of metals trading at High Ridge Futures. Markets currently anticipate two rate cuts totalling 50 basis points this year, starting in September. Investors are now eyeing Friday's Personal Consumption Expenditures (PCE) data for more clues on the Federal Reserve's policy path. Non-yielding gold thrives during times of uncertainty and inflation, but higher interest rates make it less attractive. Elsewhere, spot silver rose nearly 1% to $36.63, its highest level since June 18. "If silver does get above $37.50, then it has potential to go higher," said Michael Matousek, head trader at U.S. Global Investors. Palladium jumped over 8% to $1,136.68 after hitting its highest since October 31, 2024. Platinum added 5.1% to $1,423.26, climbing near its September 2014 peak. "The strength in platinum and palladium prices is just a June phenomenon, which reflects speculative buying with some investors increasing their inventories believing prices were undervalued given the tightness in the market," said Jeffrey Christian, managing partner of CPM Group. In May, the World Platinum Investment Council (WPIC) reported a rise in demand for platinum jewelry in China, worsening the structural market deficit. Platinum may touch $1,500/oz over next few days and drop to $1,200 in two weeks, while palladium could be back down to around $1,050 by mid-July, Christian added. https://www.reuters.com/world/india/gold-rises-weaker-dollar-trumps-powell-criticism-fuel-uncertainty-2025-06-26/
2025-06-26 06:43
India allocates 5.2 million tons of rice for ethanol Rice ethanol helps to achieve 19.8% blending in gasoline Rice inventories rose to 59.5 million tons as of June 1 MUMBAI, June 26 (Reuters) - India is allocating record rice volumes for ethanol production as it struggles with unprecedented inventories that are likely to swell further with the arrival of the new season crop, a reversal from earlier shortages that led to export curbs. Turning more rice to ethanol is helping to reduce rice stocks in the world's biggest producer and exporter of the grain and keeping India's ambitious ethanol blending programme on track despite a drop in supplies of traditional feedstock sugar cane. Sign up here. In March, India removed the last of roughly two years of restrictions on rice exports, which had been prompted by poor rains that curtailed production. This year's ample monsoon rains are poised to deliver an abundant harvest. "Our top priority is making sure we have enough food," a senior government official told Reuters, declining to be named because he was not authorised to speak with media. "But since we have way more rice than we actually need for that, we’ve decided to use some of it for ethanol production," the official said. The state-run Food Corporation of India (FCI) has allocated a record 5.2 million metric tons of rice for ethanol, equivalent to nearly 9% of global rice shipments in the 2024/25 marketing year ending in June. In the previous year, less than 3,000 tons of FCI rice went into ethanol. FCI buys nearly half of India's rice crop and currently has reserves, including unmilled paddy, of a record 59.5 million metric tons on June 1, far exceeding the government's target of 13.5 million tons for July 1. The availability of rice for ethanol has taken pressure off corn prices, which jumped to record high last years, forcing record imports by India. Grain-based distilleries use corn, rice and damaged food grains as feedstock, switching between them depending on price. India, the No.3 oil importer and consumer of petroleum products, aims to increase the blending of ethanol into gasoline to 20% by 2025/26. Last month, it nearly hit that target, reaching 19.8% ethanol, thanks to plentiful rice. The 20% goal had appeared to be beyond reach when sugarcane supplies, which accounted for 80% of ethanol feedstock until three years ago, tumbled because of drought in 2023, forcing the world's biggest consumer of the sweetener to sharply reduce diversion of sugar for ethanol. Last year, India's gasoline included 14.6% ethanol. PROBLEM OF PLENTY Even more rice will be used for ethanol if the government either lowers rice prices or increases the ethanol buying price, said Arushi Jain, joint secretary at the Grain Ethanol Manufacturers Association. The FCI is selling rice at 22,500 Indian rupees ($262.19) per ton, while oil marketing companies are procuring rice-based ethanol at 58.5 rupees per litre, which doesn't provide enough margin to ramp up rice-based ethanol production even further, said Akshay Modi, managing director at Modi Naturals Ltd, an ethanol manufacturer. FCI stocks could rise further as India is likely to harvest a bumper crop from October, said B.V. Krishna Rao, president of the Rice Exporters Association. India can increase exports only so much, said Rao, as it already accounts for more than 40% of global rice shipments. Since removing export curbs, India has been aggressively exporting rice, with shipments likely to rise nearly 25% to a record 22.5 million tons in the 2025 calendar year, denting exports of rivals including Thailand and Vietnam. India harvested a record 146.1 million tons of rice this crop year ending in June, far surpassing local demand of 120.7 million tons, according the Food and Agriculture Organization. Rising stockpiles will force India to allocate even more rice for ethanol production next marketing year, said Himanshu Agrawal, executive director at rice exporter Satyam Balajee. "The government's going to have a hard time offloading all that rice they bought from farmers," said Agrawal. ($1 = 85.8140 Indian rupees) https://www.reuters.com/sustainability/climate-energy/shortage-surplus-india-pours-record-rice-crop-into-ethanol-2025-06-26/
2025-06-26 06:42
MUMBAI, June 26 (Reuters) - The Indian rupee strengthened alongside regional peers on Thursday as the dollar was weighed down by concerns over the independence of the U.S. Federal Reserve and a pullback in geopolitical risk premium. The rupee rose nearly 0.4% to 85.74 as of 11:40 a.m. IST, broadly in line with gains seen among Asian peers. Sign up here. The offshore Chinese yuan was perched near its strongest level since Donald Trump's victory in the U.S. elections, while the dollar index hovered near a three-year low. The euro and the Swiss franc climbed to multi-year highs against the greenback as investors fretted over the independence of the U.S. central bank following Trump's remarks on Chair Fed Powell. Trump on Wednesday called Powell "terrible" for not lowering interest rates sharply. While Powell has urged a cautious approach on policy rates, markets are now pricing a near 25% chance of a rate cut in July, up from 12% a week earlier, according to CME's FedWatch tool. The heightened rate cut odds have also helped lift dollar-rupee forward premiums, with the one-year implied yield rising to a near one-month peak of 2.02% before paring gains. On the day, traders pointed to broad-based interbank dollar sales, which helped lift the rupee. FX strategists at DBS see "the scope for USD/INR to consolidate in an 84-86 range with a downside bias, aligning with its historical tendency to regain equilibrium after sharp currency movements," the firm said in a note. The rupee had weakened to a low of 86.8925 last week as the conflict between Iran and Israel deepened, but has pared losses since a ceasefire helped cool oil prices. Brent crude oil futures were last quoted at $67.8 per barrel, down nearly 12% on the week. https://www.reuters.com/world/india/rupee-climbs-with-asian-peers-forward-premiums-stick-uptrend-2025-06-26/
2025-06-26 06:40
LONDON, June 26 (Reuters) - Shell (SHEL.L) , opens new tab has not bid for BP (BP.L) , opens new tab and is not actively considering such a move, it said on Thursday, adding it was bound by UK regulations which mean such a statement ban it from making a bid for BP for the next six months. The Wall Street Journal cited sources on Wednesday saying that Shell was in talks to acquire BP, in response to which Shell said no talks were taking place. Sign up here. "In response to recent media speculation Shell wishes to clarify that it has not been actively considering making an offer for BP and confirms it has not made an approach to, and no talks have taken place with BP with regards to a possible offer," Shell said in a statement. "This is a statement to which Rule 2.8 of the Code applies and accordingly Shell confirms it has no intention of making an offer for BP. As a result Shell will be bound by the restrictions set out in Rule 2.8 of the Code." The six-month ban on making an offer for over 30% of BP's shares can be shortened if another bidder for BP emerges or if BP invites an offer, according to the regulations. https://www.reuters.com/business/energy/shell-says-it-is-not-considering-buying-bp-uk-rules-ban-bid-6-months-2025-06-26/
2025-06-26 06:39
Brent, WTI trading below levels before Iran-Israel conflict Market focus switching to fundamentals, analysts say US dollar index drops to three-year low NEW YORK, June 26 (Reuters) - Oil prices edged higher on Thursday as crude inventories in the United States fell on higher demand as summer driving season ramped up, while concerns over Middle East supply risks eased, offsetting some gains. Brent crude futures settled 5 cents, or 0.07%, higher to $67.73 a barrel. U.S. West Texas Intermediate crude gained 32 cents, or 0.49%, to $65.24 a barrel. Sign up here. Both benchmarks climbed nearly 1% on Wednesday, recovering from losses earlier in the week after data showed resilient U.S. demand. Brent futures were trading below their close of $69.36 on June 12, the day before Israel started airstrikes on Iran. The U.S. driving season had started slowly but was now stoking demand, ANZ analysts said. "The market is starting to digest the fact that crude oil inventories are very tight all of a sudden," said Phil Flynn, senior analyst with the Price Futures Group. U.S. crude oil and fuel inventories fell in the week to June 20 as refining activity and demand rose, the Energy Information Administration said on Wednesday. Crude inventories fell by 5.8 million barrels, the EIA said, exceeding analysts' expectations in a Reuters poll for a 797,000-barrel draw. Also supporting oil prices, the dollar index , which measures the greenback against a basket of currencies, sank to a three-year low as a report that President Donald Trump was planning to choose the next Federal Reserve chief early fuelled fresh bets on U.S. rate cuts. A weaker dollar makes oil less expensive for holders of other currencies, increasing demand. However, signs of easing Middle East supply risks offset some gains. Shortly before oil markets settled on Thursday, Prime Minister Benjamin Netanyahu said the outcome of Israel's war with Iran presented opportunities for peace that his country must not waste. Trump hailed the swift end to war between Iran and Israel and said Washington would likely seek a commitment from Tehran to end its nuclear ambitions at talks with Iranian officials next week. Trump also said on Wednesday that the U.S. was maintaining maximum pressure on Iran - including restrictions on sales of Iranian oil - but signalled a potential easing in enforcement to help the country rebuild. "(The) rapid push for a ceasefire suggests that President Trump remains sensitive to high oil prices, in our view, potentially capping the geopolitical risk premium even as the conflict may linger," Citi said in a note on Thursday. https://www.reuters.com/business/energy/oil-rises-draw-us-crude-stocks-signals-firm-demand-2025-06-26/
2025-06-26 06:36
AB Foods says Hull plant could close by September Ensus plant on Teesside also facing closure Including supply chain, plants support thousands of jobs UK PM Starmer had hailed trade deal as good for jobs UK government disappointed with AB Foods' announcement June 26 (Reuters) - Associated British Foods (ABF.L) , opens new tab said it would close the UK's largest bioethanol plant by September if the government does not provide support and funding, potentially the first victim of Britain's tariff deal with U.S. President Donald Trump. Under last month's trade deal, the UK's 19% tariffs on U.S. ethanol will fall to zero, through a 1.4 billion-litre (370 million gallon) quota - a figure equating to the size of the UK's entire ethanol market. Sign up here. The possible closure would be an embarrassment for Prime Minister Keir Starmer who hailed the trade deal as a boost to businesses that would protect jobs and attract investment. It also underscores how Trump's assault on trade is being felt around the world, with the closure set to affect the production of byproducts including animal feed and carbon dioxide, and British arable farmers which supply the industry. Bioethanol is produced from crops such as wheat and is used to make petrol greener and to make sustainable aviation fuel. On Monday, Starmer's government launched its industrial strategy, promising to invest in the green economy. Britain has two major bioethanol plants in northern England - AB Foods' Vivergo plant and one operated by Ensus, owned by Germany's Sudzucker Group - which account for nearly all of the UK's production capacity. They have warned that the trade deal, along with existing regulations that give U.S. producers an advantage in the British market, has made the environment impossible. The industry supports thousands of jobs. Ensus, which has warned its Teesside plant also faces imminent closure, on Thursday welcomed the appointment of external advisers to work with the industry, and said it would work with the government "urgently". LEVEL THE REGULATORY PLAYING FIELD AB Foods said on Thursday it would begin consultations with employees for an orderly wind-down of its plant, while simultaneously continuing talks with the government, which it said is now committed to reaching "a sustainable solution". It said it would cease all manufacturing before September 13, its financial year-end, "unless the government is able to provide both short-term funding of Vivergo's losses and a longer-term solution." A spokesperson for the government said it was disappointed with AB Foods' announcement, having entered into negotiations with the company on financial support on Wednesday. The government would "present a plan for a way forward that protects supply chains, jobs and livelihoods," the spokesperson added. AB Foods wants the government to increase the amount of ethanol in UK petrol from 10% to 15% and support the development of sustainable aviation fuel. It also wants the industry to have access to short-term financial aid of up to 150 million pounds ($202 million). Britain's concession on ethanol was made in return for the removal of 25% additional tariffs on steel and aluminium, and a quota of 100,000 cars at a duty of 10%. https://www.reuters.com/sustainability/climate-energy/ab-foods-set-close-bioethanol-plant-after-us-uk-trade-deal-2025-06-26/
