Commodities Update — Gold down; Soybeans rise, wheat falls; P&G raises sales forecast

Commodities Update — Gold down; Soybeans rise, wheat falls; P&G raises sales forecast
Wheat lost more ground, while corn eased. (Shutterstock)
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Updated 21 April 2022

Commodities Update — Gold down; Soybeans rise, wheat falls; P&G raises sales forecast

Commodities Update — Gold down; Soybeans rise, wheat falls; P&G raises sales forecast

RIYADH: Gold prices eased on Thursday as a rebound in US Treasury yields tempered bullion’s safe-haven demand stemming from the Ukraine crisis and its potential impact on the global economy.

Spot gold was down 0.4 percent at $1,950.61 per ounce, as of 0502 GMT. US gold futures were down 0.1 percent at $1,953.00.

Benchmark US 10-year Treasury yields firmed after they fell from three-year highs on Wednesday. 

Silver dips

Spot silver dipped 0.6 percent to $25.07 per ounce. 

Platinum dropped 0.7 percent to $980.00, while palladium slipped 0.8 percent to 2,431.81.

Soybean rise

Chicago soybean futures ticked higher on Thursday, holding on to gains made in recent sessions, as expectations of higher demand for US supplies underpinned the market.

Wheat lost more ground, while corn eased.

The most-active Chicago Board of Trade soybean contract added 0.1 percent to $17.19 a bushel, as of 0159 GMT.

Wheat lost 0.7 percent to $10.90 a bushel and corn gave up 0.3 percent to $8.07-3/4 a bushel.

P&G raises sales forecast

(Shutterstock)

Procter & Gamble Co. raised its full-year sales forecast on Wednesday as consumer demand for cleaning and personal care products remained stronger than expected despite higher prices, sending its shares up more than 2 percent.

P&G’s sales growth is at its strongest in at least 15 years, according to analysts, but there are concerns that consumers will start to swap branded items for cheaper own-label products, as supply chain constraints and soaring commodity prices push inflation ever higher, squeezing household budgets.

P&G executives said, however, that for now, consumers were switching to better-value premium products such as single-dose detergents or higher-priced diapers, adding they would focus marketing efforts on such offerings.

Executives also announced fresh price hikes in US feminine, home and oral care from this summer, even though they expect consumer demand to soften as the higher prices feed through to shop shelves.

(With inputs from Reuters) 

 


Oil Updates — Crude down; China’s July refinery output drops to over 2-year low; Singapore marine fuel sales rebound

Oil Updates — Crude down; China’s July refinery output drops to over 2-year low; Singapore marine fuel sales rebound
Updated 16 sec ago

Oil Updates — Crude down; China’s July refinery output drops to over 2-year low; Singapore marine fuel sales rebound

Oil Updates — Crude down; China’s July refinery output drops to over 2-year low; Singapore marine fuel sales rebound

RIYADH: Oil prices dropped for a second session on Monday as weak China economic data triggered concerns about demand at the world’s largest crude importer while the head of the world’s top exporter, Saudi Aramco, said it was ready to ramp up output.

Brent crude futures fell 89 cents, or 0.9 percent, to $97.26 a barrel by 0034 GMT after settling 1.5 percent lower on Friday. 

US West Texas Intermediate crude was at $91.27 a barrel, down 82 cents, or 0.9 percent, after a 2.4 percent drop in the previous session.

July refinery output in China drops to over 2-year low on plant outages

China’s refinery crude throughput fell last month to its lowest since March 2020 as several state refiners underwent unplanned shutdowns and their independent peers trimmed production in response to thinning margins.

Refiners processed 53.21 million tons of crude oil in July, 8.8 percent less than a year earlier, according to data from the National Bureau of Statistics.

That is equivalent to 12.53 million barrels per day, the lowest daily rate since March 2020, and compared with 13.37 million bpd in June.

The weaker throughput in July extended a rare decline in China’s refinery processing seen in the first half of 2022 as strict COVID-19 lockdowns and fuel export controls curbed their production.

During the first seven months, refineries processed 380.27 million tons, down 6.3 percent from a year before and equal to about 13.09 million bpd.

Prolonged outages at large state-run refineries such as Sinopec Shanghai Petrochemical Corp’s 320,000-bpd crude facility and PetroChina Wepec’s 200,000-bpd plant weighed on national production.

Sinopec did not resume refining at some of the units at the Shanghai plant until last week, while the northeast Liaoning-based Wepec was not expected to resume operation until late August after nearly three months’ shutdown, said an industry source.

Singapore marine fuel sales rebound to 7-month high in July

Marine fuel sales in Singapore, the largest bunkering hub in the world, rose by 10 percent month-on-month to a seven-month high of 4.12 million tons in July, the latest data from the Maritime and Port Authority of Singapore showed.

The uptick came amid a rise in vessel arrivals for bunkering, which climbed 8 percent month-on-month to 3,181 vessel calls in July. Bunker fuel prices were also lower in July versus June, amid softer upstream crude prices.

Sales for both low-sulfur fuel oil and high-sulfur fuel oil grades climbed from the previous month, the MPA data showed.

LSFO supplied to ships climbed by 7 percent month-on-month to 2.51 million tons in July, though the sales fell by 7 percent year-on-year.

Low-sulfur bunker fuel premiums were still elevated in the first half of July, at a time when cargo premiums rallied to record highs, before trending lower toward the end of the month.

Meanwhile, HSFO supplied to ships rose by 16 percent month-on-month to 1.27 million tons in July, and was 20 percent higher year on year.

(With input from Reuters)


TASI almost flat on higher inflation: Opening bell

TASI almost flat on higher inflation: Opening bell
Updated 26 min 46 sec ago

TASI almost flat on higher inflation: Opening bell

TASI almost flat on higher inflation: Opening bell

RIYADH: Saudi stocks started Monday’s session almost flat after the Saudi annual inflation rate increased to 2.7 percent in July, inciting uncertainty among investors.

TASI edged down 0.08 percent at 12,504, while the parallel market, Nomu, fell 0.16 percent at 22,005, as of 10:06 a.m. Saudi time.

Saudi Aramco shed 0.25 percent, despite achieving its highest quarterly profit since going public in 2019 with SR182 billion ($48.4 billion), a 90 percent jump over analysts' expectations.

Saudi Tadawul Group Holding Co. dropped 1.65 percent, following the announcement of a 23 percent decline in profits during the first half of the year to SR278 million.

Red Sea International Co. gained 4.96 percent to lead the gainers, after the real estate firm announced that its accumulated losses have been cut to zero, following a reduction in the company’s capital by SR298 million.

Saudi Printing and Packaging Co. climbed 2.45 percent, after the company narrowed its losses by 91.8 percent to SR2 million during the first half.

Basic Chemical Industries Co. lost 0.97 percent, despite achieving a 63 percent profit increase to SR46 million for the first half.

solutions by stc increased 0.43 percent, after its acquisition of Egypt’s Giza Systems has been approved by the Saudi competition authority.

Wafrah for Industry and Development Co. increased 1.86 percent, after the company swung to a profit of SR11 million during the first half of 2022.

Arabian Shield Cooperative Insurance Co. edged up 0.43 percent, despite a 30 percent profit decline to SR16 million for the first half.

The country's biggest lender Saudi National Bank declined 0.27 percent, while the Kingdom’s largest valued bank Al Rajhi fell 0.34 percent.


Here’s what you need to know before Tadawul trading on Monday

Here’s what you need to know before Tadawul trading on Monday
Updated 36 min 21 sec ago

Here’s what you need to know before Tadawul trading on Monday

Here’s what you need to know before Tadawul trading on Monday

RIYADH: Saudi stocks closed slightly lower on Sunday, tracking oil’s Friday drop.

TASI slipped 0.13 percent to 12,514, with shares of oil giant Aramco down 0.9 percent after reporting a record second-quarter profit of SR182 billion ($48.4 billion).

Aramco’s profit soared 80 percent in the second quarter of 2022 from SR95.5 billion a year earlier, beating the median of analysts’ forecasts with the highest quarterly profit since going public in 2019.

The Kingdom’s parallel Nomu market finished 0.08 percent higher at 22,041.

Elsewhere, Oman, Qatar, and Bahrain advanced 0.1, 0.4, and 0.8 percent, respectively, while the Kuwaiti index lost 0.7 percent.

Outside the Gulf, the Egyptian index EGX30 ended the session flat.

Oil prices continued to drop on Monday. Brent crude fell to $97 a barrel and US West Texas Intermediate reached $91.03 a barrel by 8:57 a.m. Riyadh time.

Stock news

Red Sea International Co. said its accumulated losses have dropped to zero, following an SR298 million capital reduction

Basic Chemical Industries Co. recorded a 63 percent profit increase to SR46 million for the first half of 2022

solutions by stc’s acquisition of a controlling stake in Egypt’s Giza Systems has been approved by the Saudi competition authority

Al Hassan Ghazi Ibrahim Shaker Co. achieved a net profit of SR26 million in the first half of 2022, a 72 percent increase from the first half of last year

Lazurde Co. for Jewelry reported a 22 percent profit rise in the first half of 2022 to SR22.2 million

Saudi Printing and Packaging Co.’s losses narrowed by 91.8 percent to SR2 million during the first half of 2022

Halwani Bros Co. reported a first-half profit decline of 65 percent to SR18 million

Middle East Paper Co.’s board proposed a 33 percent capital raise to SR666 million to support the company’s financial position and growth plans

Watani Iron Steel Co. saw its profit drop 15 percent to SR25 million during the first half of 2022

Calendar

August 15, 2022

Naqi Water Co. will start trading its shares on TASI


Saudi jeweler L’azurde posts 22% profit jump in H1 on strong retail sales

Saudi jeweler L’azurde posts 22% profit jump in H1 on strong retail sales
Updated 15 August 2022

Saudi jeweler L’azurde posts 22% profit jump in H1 on strong retail sales

Saudi jeweler L’azurde posts 22% profit jump in H1 on strong retail sales

RIYADH: Saudi jeweler L’azurde has reported a 22 percent profit rise in the first half of 2022 on the back of higher retail sales.

It reported a profit of SR22.2 million ($5.9 million) in the first half compared to SR18 million in the same period last year, according to a bourse filing.

The results were helped by higher revenues, higher gross profits, and reduced financing costs.

Saudi retail revenues surged 12.6 percent over the same period last year following the easing of precautionary measures regarding COVID-19.

In Egypt, retail revenues rose 5 percent due to an increase in revenues at the same stores, the opening of new outlets in the past year, and the increase in selling prices to counter the lower exchange rate, it said.


Red Sea International reduces $80m capital to write off accumulated losses 

Red Sea International reduces $80m capital to write off accumulated losses 
Updated 15 August 2022

Red Sea International reduces $80m capital to write off accumulated losses 

Red Sea International reduces $80m capital to write off accumulated losses 

RIYADH: Red Sea International Co. said its accumulated losses have dropped to zero, following an SR298 million ($80 million) capital reduction.

The Saudi-listed construction firm brought down its capital to SR302 million from SR600 million, by canceling nearly 30 million shares, according to a bourse filing.

The purpose of the transaction was to extinguish accumulated losses, which amounted to almost 58 percent of the capital, or SR346 million, as of June end.

Most recently, Red Sea International reported that its net loss widened by 7 percent to SR67 million in its financial results for the first half of 2022.