Commodities Update — Gold slowly climbs up; grains fall on recession fear; copper slides

Commodities Update — Gold slowly climbs up; grains fall on recession fear; copper slides
The most-active corn contract on the Chicago Board of Trade lost 0.8 percent to $5.73-3/4 a bushel as of 0252 GMT. (Shutterstock)
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Updated 06 July 2022

Commodities Update — Gold slowly climbs up; grains fall on recession fear; copper slides

Commodities Update — Gold slowly climbs up; grains fall on recession fear; copper slides

RIYADH: Gold found temporary respite on Wednesday after touching a near seven-month low in the previous session, as the dollar paused for breath after a blistering surge to 20-year highs.

Spot gold rose 0.3 percent to $1,770.27 per ounce by 0330 GMT. 

US gold futures also firmed 0.3 percent to $1,769.10.

Silver drops

Spot silver dipped 0.1 percent to $19.27 per ounce, while platinum was down 0.7 percent at $859.52. 

Palladium slipped 0.2 percent to $1,929.35.

Grains fall

Chicago corn futures lost more ground on Wednesday, with prices trading near a multi-month low reached in the previous session on worries around a global recession.

Wheat eased, while soybeans ticked higher.

The most-active corn contract on the Chicago Board of Trade lost 0.8 percent to $5.73-3/4 a bushel as of 0252 GMT, while wheat gave up 0.6 percent to $8.02-1/2 a bushel.

Soybeans added 0.3 percent to 13.19-1/4 a bushel.

Copper dips

Copper prices fell on Wednesday to their lowest since November 2020, weighed down by a robust US dollar and threats to demand from heightened fears of a global recession and renewed lockdowns in top consumer China.

Three-month copper on the London Metal Exchange was down 2.5 percent at $7,483 a ton, as of 0440 GMT, its lowest since November 27, 2020.

The most-traded August copper contract in Shanghai dropped 5.5 percent to $8,582.76 a ton by the midday break.

(With inputs from Reuters)


NRG Matters — Oman aims to produce 3,350MW electricity from renewables by 2027; Malaysian utility expedites energy transition

NRG Matters — Oman aims to produce 3,350MW electricity from renewables by 2027; Malaysian utility expedites energy transition
Updated 12 sec ago

NRG Matters — Oman aims to produce 3,350MW electricity from renewables by 2027; Malaysian utility expedites energy transition

NRG Matters — Oman aims to produce 3,350MW electricity from renewables by 2027; Malaysian utility expedites energy transition

RIYADH: Oman is planning to boost its daily power production using renewable energy to 3,350 MW by 2027, up from its current 650 MW, according to Oman Daily Observer.

The country also aims to become one of the top 40 countries globally in the environmental performance index. 

Electric vehicle 

China’s Geely Automobile is aiming to increase the proportion of electric vehicles in its total sales to 50 percent in 2023, Reuters reported. 

It is part of the company’s objectives to accelerate its transition to EV production amid weakening demand for petrol-driven cars.

Green hydrogen conference

The Connecting Green Hydrogen MENA 2023 event will be held on March 14-16, 2023, in Palazzo Versace Dubai, according to Trade Arabia. 

The event will include 1,500 policymakers, oil and gas firms, energy utilities, investors, project developers, suppliers, hydrogen mobility and transportation firms.

The conference will focus on future development and prospects of the Middle East and North African region’s hydrogen industry.

Energy transition 

Malaysian utility Tenaga Nasional Bhd is aiming for capital expenditure of about 20 billion ringgit ($4.48 billion) annually till 2050 to fast track its energy transition plans, Reuters reported citing a statement. 

The investments will help Tenaga reach net-zero emissions by 2050 and “open opportunities in more than doubling its earnings before interest and taxes,” said CEO Baharin Din. 


Saudi IT firm Arab Sea plans new Egyptian branch to meet rising demand 

Saudi IT firm Arab Sea plans new Egyptian branch to meet rising demand 
Updated 24 min 37 sec ago

Saudi IT firm Arab Sea plans new Egyptian branch to meet rising demand 

Saudi IT firm Arab Sea plans new Egyptian branch to meet rising demand 

RIYADH: Information technology services provider Saudi Arab Sea Information Systems Co. plans to open a new office in Egypt in order to address the rising demand for its systems.

Based in Riyadh, the company said in a bourse filing that the decision was approved by the company’s board of directors on Aug. 17.

It added that any developments will be announced in due course.

Most recently, Arab Sea reported weak earnings for the first half of 2022, turning into losses of SR5.5 million ($1.33 million) from SR4.4 million in profit a year earlier.

The results were attributed to a year-on-year revenue drop of 22 percent to SR17 million, in addition to higher costs from establishing its unit, Arab Sea Financial Co.


Saudi insurer Enaya seeks capital reduction of $13m to recoup losses

Saudi insurer Enaya seeks capital reduction of $13m to recoup losses
Updated 32 min 33 sec ago

Saudi insurer Enaya seeks capital reduction of $13m to recoup losses

Saudi insurer Enaya seeks capital reduction of $13m to recoup losses

RIYADH: Saudi Enaya Cooperative Insurance Co.’s board proposed a capital reduction of SR50 million ($13 million).

Upon the reduction, the company will increase its capital by SR130 million through a rights issue, bringing the company's capital to SR230 million, the company said in a bourse filing.

Enaya is reducing its capital to amortize its accumulated losses, it said.


Saudi Aslak to acquire 30% stake in UAE A-1 Fence’s Dammam-based unit

Saudi Aslak to acquire 30% stake in UAE A-1 Fence’s Dammam-based unit
Updated 40 min 20 sec ago

Saudi Aslak to acquire 30% stake in UAE A-1 Fence’s Dammam-based unit

Saudi Aslak to acquire 30% stake in UAE A-1 Fence’s Dammam-based unit

RIYADH: Saudi cable manufacturer Aslak has signed a deal with UAE’s A-1 Fence DMCC C0. to acquire a stake in its wholly owned unit based in Dammam.  

Formally known as United Wire Factories Co., the firm revealed in a bourse filing that it will acquire a 30 percent stake of the capital of A-1 Fence Arabia Co. for Industry.

The share purchase agreement is subject to approval from the Kingdom’s General Authority for Competition and relevant regulatory authorities.

This potential deal comes as Aslak aims to diversify its sources of income and maximize profitability through a pool of investments.


Saudi cement producer Umm Al-Qura’s profit drops 55% as sales slump

Saudi cement producer Umm Al-Qura’s profit drops 55% as sales slump
Updated 59 min 57 sec ago

Saudi cement producer Umm Al-Qura’s profit drops 55% as sales slump

Saudi cement producer Umm Al-Qura’s profit drops 55% as sales slump

RIYADH: Saudi cement producer, Umm Al-Qura Cement Co. has posted a 55 percent decline in net profit during the first half of 2022 owing to lower cement sales.

Profits in the first half dropped from SR49 million in the same period last year to SR22 million ($5.9 million), according to a bourse filing.

The company attributed the decline in net profit to a decrease in sales value and an increase in selling, marketing, and administrative expenses.

Its revenue declined 19 percent to SR125 million during the current period from SR154 million during the previous period.