Commodities Update — Gold flat; Wheat nears record peak; UN warns on child nutrition due to price hikes

Commodities Update — Gold flat; Wheat nears record peak; UN warns on child nutrition due to price hikes
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Updated 17 May 2022

Commodities Update — Gold flat; Wheat nears record peak; UN warns on child nutrition due to price hikes

Commodities Update — Gold flat; Wheat nears record peak; UN warns on child nutrition due to price hikes

RIYADH: Gold prices were little changed on Tuesday, as a pullback in the dollar supported demand for greenback-priced bullion and countered pressure from a recovery in US Treasury yields.  

Spot gold was last up 0.1 percent at $1,825.29 per ounce, as of 2.18 a.m. GMT, while US gold futures gained 0.6 percent to $1,825.60. 

Spot silver dropped 0.2 percent to $21.56 per ounce, while platinum was flat at $945.76. 

Palladium fell 1.2 percent to $2,002.17. 

Wheat up on supply worries

Chicago wheat futures on Tuesday neared a record peak set in March, after the US Department of Agriculture reported a worsening condition of the winter crop, deepening supply worries in an already-tight market.

The significance of US crops has risen after the Russian invasion of Ukraine hampered shipments from the key Black Sea region, and India unexpectedly closed its doors on wheat exports.

The most-active wheat contract on the Chicago Board of Trade rose as much as 2.2 percent to $12.75 a bushel, the highest since March 8, when it hit a record high of $13.64.

CBOT corn was down 0.5 percent at $8.05-1/4 a bushel as of 0204 GMT, after touching a two-week peak in the previous session.

CBOT soybeans were 0.1 percent higher at $16.58 a bushel.

London copper at near 1-week high

Prices of London copper, often used to gauge global economic health, rose to a nearly one-week high on Tuesday, as top metals consumer China’s decision to ease some COVID-19 restrictions fueled expectations of a recovery in demand.

Benchmark three-month copper on the London Metal Exchange was up 1.1 percent at $9,338 a ton, as of 0504 GMT, after hitting its highest since May 11 at $9,341.50.

The most-active June copper contract on the Shanghai Futures Exchange rose 0.8 percent to $10,573.36 a ton by the midday break.

UN warns of ‘catastrophic’ child malnutrition due to price hikes, Ukraine war

The cost of life-saving treatment for the most severely malnourished children is set to jump by up to 16 percent, due to Russia’s invasion of Ukraine and pandemic disruptions, according to the United Nations’ children’s agency.

The raw ingredients of the ready-to-eat-therapeutic food have leapt in price, amid the global food crisis sparked by the war and pandemic, UNICEF said.

Without further funding in the next six months, 600,000 more children may miss out on the essential treatment, which is a high-energy paste made of ingredients including peanuts, oil, sugar and added nutrients.

UNICEF did not specify how much increased spending would be needed to maintain the program. It said a carton of the specialized nutrition containing 150 packets — enough for 6 to 8 weeks to bring a severely malnourished child back to health — goes for about $41 on average.

Alongside the wider pressure on food security, including climate change, the price rise could lead to “catastrophic” levels of severe malnutrition, the children’s agency warned in a statement.

“The world is rapidly becoming a virtual tinderbox of preventable child deaths and child suffering from wasting,” said UNICEF Executive Director Catherine Russell.

(With input from Reuters) 


Oil rises as tight supply trumps recession fears

Oil rises as tight supply trumps recession fears
Updated 04 July 2022

Oil rises as tight supply trumps recession fears

Oil rises as tight supply trumps recession fears
  • OPEC misses target to boost output in June: Survey

LONDON: Oil rose on Monday as supply concerns driven by lower OPEC output, unrest in Libya and sanctions against Russia outweighed fears of a demand-sapping global recession.
Eurozone inflation hit yet another record high in June, strengthening the case for rapid European Central Bank rate increases, while US consumer sentiment hit a record low.
Brent crude rose $2.26, or 2 percent, to $113.89 a barrel by 12:47 p.m. ET (1648 GMT) after falling more than $1 in early trade. US West Texas Intermediate crude rose $2.20, or 2 percent, to $110.63, in thin volume during the US Independence Day holiday.
The Organization of the Petroleum Exporting Countries missed a target to boost output in June, a Reuters survey found.
In OPEC member Libya, authorities declared force majeure at Es Sidr and Ras Lanuf ports as well as the El Feel oilfield on Thursday, saying oil output was down by 865,000 barrels per day.
Meanwhile, Ecuador’s production has been hit by more than two weeks of unrest that has caused the country to lose nearly 2 million barrels of output, said state-run oil company Petroecuador.
Adding to potential supply woes, a strike this week in Norway could cut supply from Western Europe’s largest oil producer and reduce overall petroleum output by about 8 percent.
“This backdrop of mounting supply outages is colliding with a possible shortage in spare production capacity among Middle Eastern oil producers,” said Stephen Brennock of oil broker PVM, referring to the limited ability of producers to pump more oil.
“And without new oil production hitting markets soon, prices will be forced higher.”

British PM
British Prime Minister Boris Johnson on Monday called on the OPEC+ producer group to produce more oil to tackle a cost-of-living crisis.
Brent crude has come close this year to topping the 2008 record high of $147 a barrel after Russia’s invasion of Ukraine added to supply concerns.
Soaring energy prices on the back of bans on Russian oil and reduced gas supply have driven inflation to multi-decade highs in some countries and stoked recession fears.


Egypt In-Focus — Suez Canal’s revenues rise 20.7%; efforts on to develop sustainable transport sector

Egypt In-Focus — Suez Canal’s revenues rise 20.7%; efforts on to develop sustainable transport sector
Updated 04 July 2022

Egypt In-Focus — Suez Canal’s revenues rise 20.7%; efforts on to develop sustainable transport sector

Egypt In-Focus — Suez Canal’s revenues rise 20.7%; efforts on to develop sustainable transport sector

CAIRO: Egypt’s Suez Canal’s revenues increased 20.7 percent during the fiscal year 2021/22. The Ministry of International Cooperation has received $2.4 billion from bilateral and multilateral partners over the past two years for the development of sustainable transport sector.

Suez Canal

Suez Canal’s revenues increased by 20.7 percent during the fiscal year 2021/22, compared to the year earlier, to reach $7 billion, Asharq Al-Awsat reported citing Suez Canal Authority Chairman Osama Rabea.

Egypt’s fiscal year runs from July 1 to June 30.

Sustainable transport sector 

Egypt is working to provide development funds and technical support from multilateral and bilateral development partners in a bid to develop the transport sector, Asharq Al-Awsat reported citing the minister of international cooperation.

Rania Al-Mashat was quoted as saying that over the past two years, the ministry has received around $2.4 billion for the sustainable transport sector from the European Investment Bank, the French Development Agency, the European Bank for Reconstruction and Development, China, and the Kuwait Fund for Arab Economic Development.

BNPL service

Amazon Egypt has launched its buy now, pay later fintech platform valU, as part of its commitment to enhance shopping experience in the north African country and offer customers affordable and flexible payment options. 

 


Boubyan Bank and Visa celebrate launch of World Cup Qatar 2022 Prepaid Card

Boubyan Bank and Visa celebrate launch of World Cup Qatar 2022 Prepaid Card
Updated 04 July 2022

Boubyan Bank and Visa celebrate launch of World Cup Qatar 2022 Prepaid Card

Boubyan Bank and Visa celebrate launch of World Cup Qatar 2022 Prepaid Card
  • The card includes many events, exclusive discounts and offers for Visa cardholders

KUWAIT: Boubyan Bank and Visa announced the launch of Boubyan’s Visa FIFA World Cup Qatar 2022 Prepaid Card on Friday.

The launch event was attended by partners, media professionals, social media influencers, and bank customers.

“It is no secret that Kuwait, the region and the whole world are passionate about football,” Abdullah Al-Mejhem, Chief Private Banking and Consumer Banking, said.  “The fact it will be held in a GCC country makes us at Boubyan Bank proud of how far we have come as a region and our partnership with Visa.”

He continued: “We take pride in our collaboration with Visa in this special launch of Boubyan Visa Prepaid Card along with its various benefits. I would like to seize this opportunity to reiterate the importance of our special partnership with Visa that dates back to many years, and which, thank Almighty Allah, introduced outstanding services to better serve our customers of all segments.

“Boubyan Bank is keen on changing traditional concepts about banking products and services out of its endeavors to become a “Way of Life” and to be always closer to customers. This can be clearly seen through our constant tracking of sports’ activities, especially popular sports such as football.”

At the event, customers enjoyed the activities and many benefits such as being issued the card with no fees.

“We are proud to join our longstanding partner Boubyan Bank in offering football fans in Kuwait access to the digital economy through secure and rewarding digital payment solutions. These FIFA-themed Visa prepaid cards are contactless enabled for quick and easy payments in store and backed by Visa’s security technology so cardholders can pay with confidence. For travelers, they also promise the peace of mind of worldwide acceptance at our 100 million merchant partner locations” Shashank Singh, Visa’s General Manager for Kuwait and Qatar, said.

“There is no doubt that the FIFA World Cup ™ is an international event that draws the attention of people around the world for more than one month. This time, the event enjoys a special importance since it will be held very near to us, an hour away, which gives it more focus and attention.” Yousef Al-Majed, the bank's Executive Manager, stated.

According to Al-Majed, the card's design includes many events, exclusive discounts and offers for Visa cardholders, as well as the ability to use it with all modern payment Apps and smart wearables.

“The card is easily available for all Boubyan Bank’s customers. It is a limited edition, which gives it more glamour and importance. Customers can get the card through Msa3ed, our digital assistant on Boubyan App, or through any of Boubyan Bank’s branches, where they can apply for the card and choose whether the card be delivered to their homes within 5 business days, or to receive the card from any branch within 3 business days.” he pointed out.

“This ceremony comes as a part of the campaign organized by the bank for this card, which started months ago, including the organization of Boubyan Football Cup during the Holy Month of Ramadan. The coming period will witness many events to be announced in due time through our social medial platforms as a part of the marketing campaign for the card,” Al-Majed concluded.


OPEC+ must produce more oil, says British premier

OPEC+ must produce more oil, says British premier
Updated 04 July 2022

OPEC+ must produce more oil, says British premier

OPEC+ must produce more oil, says British premier

LONDON: British Prime Minister Boris Johnson said on Monday OPEC+ must produce more oil to try to tackle a growing cost-of-living crisis and bring down prices.

“There is no doubt that we are going to need a lot more OPEC+ oil,” he told parliament, referring to a group that includes Saudi Arabia, Russia and other major oil producers.

“The UK has ... strong and productive relations with Saudi Arabia. We need to make sure the whole of the West does as well,” Johnson said, adding that Saudi Arabia needed to produce more oil. 


NRG Matters: Australia, India agree to strengthen clean energy deal; EU plan hydrogen deal with Namibia


NRG Matters: Australia, India agree to strengthen clean energy deal; EU plan hydrogen deal with Namibia

Updated 04 July 2022

NRG Matters: Australia, India agree to strengthen clean energy deal; EU plan hydrogen deal with Namibia


NRG Matters: Australia, India agree to strengthen clean energy deal; EU plan hydrogen deal with Namibia


RIYADH: On a macro level, Australia and India have agreed to a partnership to strengthen a clean energy deal. Zooming in, France’s Technip Energies has been awarded a contract to build the first carbon capture and storage project in the world. 

Looking at the bigger picture

• The EU is planning a deal with Namibia to support the country’s emerging green hydrogen sector and boost its own imports of the fuel, Reuters reported citing EU and Namibian officials.

It is part of the bloc efforts to reduce its dependence on Russian energy.

• Australia and India have agreed to a partnership to strengthen a clean energy deal, according to Reuters. 

The two countries agreed to cooperate in developing critical metal projects and supply chains.

Through a micro lens

• French engineering and technology firm for the energy industry Technip Energies has been awarded an engineering, procurement and construction contract for the world’s first carbon capture and storage project.

Awarded by Hafslund Oslo Celsio, the project is for a supplier of district heating in Norway, and will be the first full-scale waste-to-energy plant in the world with carbon dioxide capture, Trade Arabia reported.