Latest news with #commodity
Reuters
8 hours ago
- Business
- Reuters
Vitol paid out $10.6 billion to shareholders in buybacks in 2024
LONDON, July 28 (Reuters) - Global commodity trading house Vitol Group paid $10.6 billion to employees who own shares in the company, through its annual share buyback scheme in 2024, company filings seen by Reuters showed. Vitol's $10.6 billion in buyback payments were up from the $6.4 billion it paid in 2023 - extending its highest ever. Buybacks rose in 2024 as a continuation of record earnings even though profits started to drop from all-time highs. Vitol made around $8-8.5 billion in net profit last year, down from $13 billion in 2023 and $15 billion in 2022. Vitol and rival global commodity traders such as Trafigura and Gunvor made lower net profit in their 2024 financial year, as markets stabilised after a period of turmoil in 2022-2023 as trading houses made record earnings during Europe's energy crisis and Russia's invasion of Ukraine. As well as funding its share buybacks, Vitol has been putting its bumper earnings towards investments in upstream and downstream assets across the globe. In 2024 Vitol acquired Italian refining company Saras. It has also diversified from its traditionally oil-heavy portfolio, increasing its activities in the natural gas trading business, as well as coal and metals. The total equity attributable to company owners for the 2024 financial year was $30.6 billion, down from $32.4 billion in 2023 according to the earnings document.
Reuters
21-07-2025
- Business
- Reuters
British stocks inch higher as China stimulus hopes buoy miners
July 21 (Reuters) - London's main stock indexes nudged higher on Monday, supported by industrial metal mining stocks that jumped on hopes of a stimulus from the world's largest commodity consumer, China. The internationally-oriented FTSE 100 (.FTSE), opens new tab was up 0.1% as of 0929 GMT, after logging its fourth straight week of gains on Friday, while the domestically-oriented midcap FTSE 250 index (.FTMC), opens new tab rose 0.3%. The blue-chip index had surged to all-time highs last week as investors took comfort in a relatively U.S. tariff-shielded market, higher commodity prices and hopes of a Bank of England rate cut. On the day, the UK industrial metal mining stocks index (.FTNMX551020), opens new tab led sectoral gains with a 3.3% rise, tracking a rise in metal prices after China vowed to stabilise its industrial growth, and on hopes for more stimulus from the world's largest commodity consumer. Miners Glencore (GLEN.L), opens new tab gained 3.7%, Anglo American (AAL.L), opens new tab rose 3.5%, Antofagasta (ANTO.L), opens new tab advanced 3.3%, and Rio Tinto (RIO.L), opens new tab up 2.8%. Banks and financial services (.FTNMX301010), opens new tab were down 0.3%, with Standard Chartered (STAN.L), opens new tab losing 0.9%, while Barclays (BARC.L), opens new tab fell 0.6%. The Bank of England has asked some lenders to test their resilience to potential U.S. dollar shocks, three sources told Reuters. Aerospace and defence index (.FTNMX502010), opens new tab lost 1.1%, led by a 2.1% fall in BAE Systems (BAES.L), opens new tab. The UK's personal goods index (.FTNMX402040), opens new tab lost 1.6%, dragged down by Burberry (BRBY.L), opens new tab that lost 1.9% after surging to a near 17-month high on Friday. Meanwhile, a Deloitte survey showed British consumer sentiment had a marked fall for the first time in nearly three years last month, reflecting increased worries about job security. Property site Rightmove said that asking prices for newly advertised British houses and apartments recorded their biggest July fall in more than 20 years this month. In corporate updates, BP (BP.L), opens new tab named Albert Manifold, the former boss of building materials producer CRH (CRH.N), opens new tab, as its new chairman on Monday. The Financial Times reported on Sunday that London Stock Exchange Group (LSEG.L), opens new tab is weighing whether to launch 24-hour trading and is looking into the practicalities of increasing its trading hours.
News.com.au
20-07-2025
- Business
- News.com.au
ASX Copper Tier List: Part 2 – who's best positioned for the upswing?
A proposed 50% tariff on copper imports triggered the metal's biggest overnight surge in months earlier this year, with spot prices smashing through the critical $US5.50/lb barrier and setting pure-play copper companies up for potentially massive windfalls. To grasp the market's reaction, it helps to consider copper's vital role in everyday life. From the wiring behind every power outlet in our homes to the infrastructure of skyscrapers, copper is everywhere. It powers our computers, cars, and smartphones, making it a foundational material in modern technology and construction. For retail investors looking for the best copper opportunities on the ASX, the most compelling lie with companies highly leveraged to the commodity with minimal diversification. With strong exposure to copper prices, these businesses stand to benefit from any price increases. But a lack of major discoveries, aging mines and declining ore grades, particularly over the past decade, is raising concerns about future supply as demand for EVs continues to rise. According to Benchmark Mineral Intelligence, to meet demand for copper – which BHP reckons will accelerate 2.6% CAGR versus the 1.9% CAGR over the past 15 years – 61 new mines are needed by 2030. Perhaps more troubling is that very few non-major companies control projects with the potential to deliver ~100,000tpa of copper. We've done the hard yards for you here, compiling part two of our look at companies producing and exploring for copper internationally, with potential to make it big. In this article we're focusing on miners, developers and explorers. Large cap producers The top miners in the world continue to look to copper for growth as the concurrent adoption of copper-intensive technologies like EVs, renewables and data centres intensifies over the next 25 years. BHP (ASX:BHP) Alongside its ownership of three of Australia's top four copper operations, the world's largest miner also co-owns Chile's Escondida mine – the world's top copper producer – through a joint venture with Rio Tinto and JECO Corporation. Copper overtook coal in BHP's earnings mix in FY23 as the miner pivoted towards future-facing commodities needed for EVs, wind turbines and solar panels to support the energy transition. In the second half of 2024, Esondida achieved its highest production levels in a decade, producing 644,000t of copper, marking a 22% increase year over year. This year, the Big Australian lifted copper output across its operations by 8% to 2.017Mt, boosted by a strong performance at Econdida, where production rose 16% to a 17-year high of 1.305Mt. BHP is spending US$2b toward concentrator optimisation as part of a broader US$10.8b investment plan over the next decade at the project, which contributes to about 2.5% of Chile's GDP. BHP's Pampa Norte copper project is also in production, consisting of two mines (Spence and Cerro Colorado) in Chile's Atacama region. The Spence mine recently achieved fully autonomous haulage operations and BHP is exploring options to extend Cerro Colorado's operational life. Rio Tinto (ASX:RIO) Like BHP, Rio Tinto is actively seeking to expand its copper production with a focus on both organic growth at existing operations and potential acquisitions. At the end of last year, the miner announced plans to grow output by 40% to 2030, putting the red metal at the centre of its next phase of expansion. Rio Tinto's copper output rose 15% year-on-year to 229,000t in April–June 2025, thanks largely to record production levels at the Oyu Tolgoi underground mine in Mongolia. The company kept its 2025 copper production guidance unchanged at 780,000–850,000t but indicated in its latest quarterly report that output is likely to reach the top end of the target. The Oyu Tolgol mine hit peak production of 87,000t of copper in concentrate in April – June, up 65% on the year as the company plans to ramp up production at the mine over the next few years, reaching an average of 500,000t per year of copper by 2028 – 2036. Meanwhile, plans for Rio Tinto and BHP to develop one of the world's largest undeveloped copper mines got the go ahead after the US Supreme Court declined to hear an appeal challenging the Resolution copper project in Arizona. Backed by more than $2 billion in investment, the project is home to over 18.1Mt of copper, potentially enough to satisfy 25% of the US's future demand for the metal. Sandfire Resources (ASX:SFR) Sandfire owns two producing copper projects overseas, the MATSA mining hub in Spain and the Motheo copper mine in Botswana's prolific Kalahari copper belt. The MATSA hub comprises three underground mines and a 4.7Mtpa central processing facility in the Iberian Pyrite Belt, producing copper, zinc and lead concentrates with gold and silver credits. The Iberian Pyrite Belt is a rich volcanogenic massive sulphide province that has been actively mined for over 5000 years, dating back to the Phoenician and Roman eras. Last year, the MATSA hub produced 109,000t of copper. The company has poured more than US$500 million into Botswana since 2021, and with Motheo now operating at a 5.6Mtpa run rate – exceeding its original production targets—it's eyeing further growth in the region. South32 (ASX:S32) South 32 acquired a 45% stake in the large scale Sierra Gorda copper-molybdenum mine in Chile in 2022. The mine began production in 2014 and delivered 150,000t of copper in 2023, along with 3,000t molybdenum. In 2024, the mine produced 86,200t. A fourth grinding line was added in 2024 to lift capacity by 20%, extending its mine life beyond 16 years. The miner also owns a resource development opportunity with its Ambler JV in Alaska, which contain a combined estimated 8bn lb of copper, focused exploration in South Africa and early stage growth in North America. New World Resources (ASX:NWC) New World Resources holds the Antler Project in Arizona, one of the most prospective copper regions in the US. While it may not match the scale of the nearby Resolution mine – jointly owned by Rio Tinto and BHP with potential output of 400,000t per annum – Antler's development timeline appears significantly more near-term and realistic. With most of its infrastructure on public land and key approvals already well progressed, the previously operating underground mine could be approved by early next year and in production as soon as 2027, within the term of pro-mining US President Donald Trump. At 30,000tpa copper equivalent (including 16,000tpa of the red metal), the project is ready to benefit as copper surpluses shift to deficits amid surging demand for the metal from clean energy technologies. The company has become the centre of a heated contest between rival suitors Central Asia Metals and Kinterra Capital, fielding 6.5c and 6.6c bids respectively. Xanadu Mines (ASX:XAM) Xanadu owns a portfolio of copper projects in the emerging mining jurisdiction of Mongolia, on the doorsteps of the world's number one copper consumer – China. Its flagship project is the giant Kharmagtai asset, backed by 730Mt in high-grade reserves, packing in 1.6Mt of copper and 4m ounces of gold at grades of 0.21% and 0.17g/t respectively. The long-awaited feasibility study for Kharmagtai, released late last year, pegged the project's NPV at US$930m (A$1.45b) using an 8% discount rate, with a US$890m (A$1.4B=b) capital cost and projected annual EBITDA of US$293m (A$458m). The project is expected to produce up to 80,000 tonnes of copper and 170,000 ounces of gold annually, with a low operating cost of US$0.70 per pound of copper over an impressive mine life of 29 years. Xanadu is developing the project in a joint venture with major Chinese multinational mining company Zijin Mining Group. With the project situated ~120km northwest of Rio's Oyu Tolgoi Mine (currently moving towards 500,000tpa copper production) on a granted mining licence with 30-year tenure and an option to extend another 40 years, it's easy to see why Singapore mining entity Bastion Mining has made an off-market $160m takeover bid for Xanadu. Bastion stepped in after talks between Xanadu and Zijin, underpinned by an exclusivity agreement aimed at finalising a control deal, ultimately fell through. After Zijin signalled its acceptance, Xanadu's independent takeover committee promptly reiterated its recommendation that shareholders accept Bastion's offer in the absence of a superior proposal. Alara Resources' active copper projects are primarily located in Oman, including the Al Wash-hi Majaza asset, the Mullaq and Al Ajal exploration licences under the Al Hadeetha JV and Block 7 inder the Daris JV. Al Wash-hi Majaza achieved first concentrate production in March 2024 with the first shipment of copper concentrate dispatched a month later, after some initial delays due to a manufacturing defect. The project, situated on the Semail Phiolite belt in northern Oman, comprises a 1Mtpa copper concentrate plant, a key part of Alara's strategy to become a mid-tier minerals producer. The asset contains a defined indicated resource of 6.84Mt grading 0l90% copper and 0.17g/t gold, along with an inferred resource of 7.27Mt at 0.71% copper and 0.20g/t gold. Capstone Copper Corp (ASX:CSC) Capstone Copper owns multiple operating mines and projects, including the Mantoverde mine in Chile's Atacama region, which is currently ramping up production. The mine – 70% owned by Capstone and 30% by Mitsubishi Materials Corporation – recently expanded into processing sulphide ores after receiving authorisation from the Atacama Regional Environmental Assessment Commission. With this approval, the Mantoverde plant is set to increase its processing capacity from 32,000 to 45,000t of ore per day, extending the operating life of the deposit from 19 to 25 years. The company's Santo Domingo asset is less than 30km away, is fully permitted and operationally complements the Mantoverde complex. Meanwhile, Capstone's Pinto Valley mine in Arizona is an open-pit mine with a 60,000tpd sulphide milling capacity that is fully permitted until 2039. The mine has been in operation since 1975, and produces both copper concentrate and copper cathode, as well as molybdenum. It has produced over 4 billion pounds of copper, including 0.5 billion pounds of copper cathode. A district growth study is underway to potentially extend the mine life to 2050. Explorers Smaller, high-grade explorers are hoping to enter production quicker, leveraging the benefits of higher prices before the hypothetical new wave of supply from the majors comes online. Hot Chili owns the Costa Fuego copper-gold project in Chile, which includes both the Cortadera and Productora assets, as well as the newly defined La Verde copper-gold discovery. Costa Fuego sits within the coastal range of Chile's Atacama region and contains probable reserves of 502Mt at 0.37% copper, 0.1g/t gold, 0.49g/t silver and 97ppm molybdenum. The project is one of the largest-scale, lowest-elevation copper resources in the world not already controlled by a major miner. HCH's subsidiary, Huasco Water, is now the only company with permitted access to supply seawater in the Huasco Valley region following a 10-year regulatory approval process. Development study activities to optimise the recent Costa Fuego PFS are underway, building on the recently released PFS, which highlighted impressive post-tax numbers for the asset including an NPV of US$1.2b and IRR of 19%. All-in sustaining costs totalled US$1.85/lb from the production of 1.5Mt of copper and 780,000oz of gold over a 20-year mine life. Costs are low compared to its peers due to Costa Fuego's low elevation and proximity to the coast. Firetails owns the Skyline copper project in Newfoundland, Canada as well as the Picha asset in Peru, where BHP is helping in the search for a discovery commensurate with its investment hurdles via the BHP Xplor incubator project. Skyline produced ~100,000t at between 3-12% copper, 7% zinc and 1-3oz/t silver at the turn of the 20th century but has gone little explored since it was held by Noranda in the 1990s. The explorer raised $3m in February to fund a high-impact exploration program at Skyline, which recently defined an 800m strike trend of copper volcanogenic massive sulphide-style mineralisation at Earl's target. Meanwhile at Picha, the BHP Xplor program will provide approximately US$500,000 in non-dilutive funding and technical support to accelerate the company's copper exploration plans. The team is set to meet again this month for another bootcamp, with the new Anta Qillqa target becoming a focus of ground activities. White Cliff Minerals (ASX:WCN) After a string of positive developments, including a strongly supported 14.4m capital raise and standout RC maiden drilling results from the Rae copper project in Canada – which delivered 105m at 2.25% copper – a diamond drilling campaign is now underway. The program is targeting the large Hulk sub basin that extends deep into the sedimentary basin that has never been drill tested. White Cliff believes the basin has all first order controls required for a sedimentary copper deposit. The company has secured a material footprint of prospective high-grade copper ground at its Rae project in Nunavut (1,288km2) and Great Bear Lake asset (2,900km2) in the Northwest Territories. White Cliff is up already 140% this year following a very successful maiden RC drilling program, which returned a whopping 175m at 2.5% copper from 7.6m, ranking among the most significant copper intersections globally within the past 50 years. Given current supply challenges, the company believes it is well placed to advance development considering its near surface mineralisation and proximity to an open water port just 80km away. Challenger Gold (ASX:CEL) Challenger Gold owns two significant discoveries of both grade and scale in South America but its copper focus lies with the El Guayabo and Colorado projects, which boasts a gold equivalent resource. The Ecuador-based assets cover 36.1km2 and adjoin the 20.5Moz Cangrejos gold project owned by TSX-listed Lumina Gold which recently secured a $300M financing deal with Wheaton Precious Metals. Cangrejos, El Guayabo, and Colorado V have the same geology, surface footprint and mineralisation style, and are interpreted as being part of the same system. The Colorado V concession is about 750m deeper in the system and is a high-level porphyry intrusive and intrusive-related breccia complex with mineralisation controlled by regional scale and local scale fault-fracture zones, breccia zones and lithology contacts. Soil geochemistry has generated 15 regionally significant gold-copper soil anomalies across the Colorado V and El Guayabo concessions, with completed exploration drilling on 13 of the soil anomalies, and all holes intersecting mineralisation. With the upgraded MRE concluding Challenger's exploration program in Ecuador, the company is now positioned to advance the monetisation process through several strategic options – a TSX listing to spin the projects off into a standalone entity, strategic sale or farm-in partnership. Belararox (ASX:BRX) Belararox owns a global portfolio of copper projects with the Toro-Malambo-Tambo (TMT) in Argentina's central Andes and the Kalahari copper project in Botswana which the company acquired in September last year. TMT is positioned between the El Indo and Marcunga Metallogenic Belts, a region known for its high potential for copper-gold deposits near the Chilean border, and sits to the south of the Filo del Sol asset, a 50/50 joint venture between BHP and Lundin Mining. The company recently wrapped up Phase 1 drilling at TMT, which tested two of several high priority target areas where surface sampling returned assays up to 1.41% copper and 1.28ppm gold. Meanwhile, work is underway to begin drilling at Kalahari with four priority targets ready for drilling in August. The sediment-hosted copper deposits of the Kalahari have become prime mining and exploration ground in recent years, with the discovery of the massive Khoemacau mine, owned by MMG, and Motheo, owned by Sandfire Resources. BRX's targets lie along strike of prospects in Cobre's Kitlanya West and its wholly owned Ngami project, with one of the highest priority drill targets held by BRX, Target 3, along strike of a Cobre intercept totalling 209.05m at 0.85% copper and 20g/t silver. The remaining targets are along strike of prospects BHP is reviewing to drill. Norfolk Metals (ASX:NFL) Norfolk is targeting a shallow copper oxide resource with potential for a low-cost, high-margin heap leach operation at the Carmen copper project in Chile's Atacama region. The asset contains an historical NI 43-101 copper oxide resource of 5.6Mt at 0.6% copper and multiple drill ready targets across more than 7.5km of untested strike. Having met all conditions of the earn-in agreement with the vendors (Transendentia) in June, the coming is now transitioning to Stage 1, aiming to earn a 70% stake in the company by spending $3m on Carmen over three years. Permitting is underway and a 5100m drilling program is in the works for Q3, comprising a combination of RC and diamond drilling to extend the mineralisation defined in the foreign resource. While Carmen is currently shaping up as a copper oxide project with highly soluble mineralisation near surface, historical drilling has also flagged strong sulphide potential that Norfolk plans to follow up.
News.com.au
18-07-2025
- Business
- News.com.au
Monsters of Rock: BHP's big year and battery metals comeback
BHP sees "resilience" in commodity demand amid trade stoushes Big Australian posts copper and iron ore records Lithium and graphite stocks rise with higher prices and US tariffs respectively BHP (ASX:BHP) CEO Mike Henry has shrugged off concerns about global trade, calling commodity markets resilient despite a porous Chinese property market and the impact of Donald Trump's tariffs on the Middle Kingdom's exports. The Big Australian is strongly wedded to the Chinese economy, producing a record 290Mt of iron ore from its Pilbara operations in FY25 while it increased met coal sales by 5% after the sale of its Blackwater and Daunia mines to Whitehaven Coal (ASX:WHC) last year was taken into account. It also lifted copper output 8% to 2.017Mt, with its flagship Escondida mine in Chile lifting 16% to a 17-year high of 1.305Mt. Unit costs are expected to be on track, with Escondida and NSW energy coal divisions exceeding the top end of guidance, while the Spence, WA iron ore and BMA (Qld coal) ops were all in the upper half of the guidance range. "Commodity demand globally has remained resilient so far in 2025," Henry said. "That resilience largely reflects China's ongoing ability to grow its overall export base despite a significant decline in exports to the USA and its ability to deliver robust domestic demand despite the dislocation in the property sector. "Copper and steel demand have benefited from a sharp acceleration in renewable energy investment, electricity grid build out, strong machinery exports and EV sales. "While slower economic growth and a fragmenting trading system remain potential headwinds, stimulus efforts by China and the USA would help to mitigate the near-term impact. "Going forward, China's 15th 5-year plan is likely to provide more visibility on policies to sustain longer term growth and development.' At 70Mt on an equity basis and 77.5Mt on a 100% basis, BHP's iron ore shipments rose 14% to a quarterly record in the three months to June 30. But prices were down 8% QoQ and 12% YoY to US$79.93/wmt FOB, with full year pricing 19% lower at US$82.13/t. It comes as traders get more bullish on China in the hopes capacity controls and potential stimulus could revive property demand, with iron ore up 1.6% in Singapore this morning to US$102.45/t. Jansen pottering But not all is well. A predictable update saw BHP lift cost estimates for its Jansen potash mine in Canada from US$5.7bn to US$7-7.4bn, with the company reverting the first stage of the development to its original completion timeline of mid-2027. Guidance is a little hum-drum for next year as well. Copper production for FY26 is guided at 1.8-2Mt, with Escondida's output forecast to fall, iron ore 284-296Mt, the Samarco JV with Vale in Brazil is forecast to lift from 6.4Mt in FY25 to 7-7.5Mt in FY26, while steelmaking coal will come in at 36-40Mt on a 100% basis and the Mt Arthur thermal coal mine will deliver 14-16Mt, around the same as its 15Mt output in the past year. RBC's Kaan Peker said the guidance was in line with consensus, saying strong operating and cashflow performance in Q4 would lead the stock to trade well today, offset by the Jansen news. Net debt of US$13bn was below RBC's and consensus estimates of US$13.9bn and US$14.2bn. BHP's Nickel West business will also report US$250-300m of negative EBITDA for the second half of FY25, after shutting down progressively over the course of the year in response to high costs and weak nickel prices caused by oversupply out of major producer Indonesia. Battery metals not booming, but maybe blooming A little bit of positivity creeping in for battery metals producers, with China starting to crack down on "illegal" mining activities at loss-making operations. In a situation that largely benefits battery maker CATL and EV giant BYD, a radical ramp up in production by Chinese producers, along with supply rushes a couple years back out of Africa, WA and South America, has sent lithium into a deep oversupply situation. That's left the industry in the Middle Kingdom effectively eating itself at the expense of BYD and CATL's bottom lines as they try to get battery costs down for electric vehicle buyers. But China's Zangge Mining – a subsidiary of Zijin – said local officials in Qinghai had told it to halt mining, according to a notice on the Shenzhen Exchange, Reuters said. The response has been swift. According to Fastmarkets, lithium carbonate prices were up US$200 to US$8500/t yesterday, with spodumene rallying to US$722.50/t from US$700/t thanks to a rise in futures prices. However, S&P Global reported that a slow down in US demand was hurting the lithium market, with power battery sales in China also growing at just 1% in May compared to 30.7% in March and 6.4% in China. Further data from the China Automotive Power Battery Industry Innovation Alliance shows installations in June lifted 1.9% MoM, but 35.9% YoY, with CATL and BYD accounting for 65% of the market between them. For the whole first half installed capacity rose 47.3% in China to 299.6GWh. S&P says low cost brine producers are also hampering the supply-demand balance by ramping up output in a bid to dilute fixed costs. With lithium prices running higher and the Zangge news, Pilbara Minerals (ASX:PLS) shares lifted 6.35%, Mineral Resources (ASX:MIN) rolled 5% higher, IGO (ASX:IGO) ran 2% and Liontown Resources (ASX:LTR) was up 6.5%. Graphite run Not to be outdone, it's been a good morning for graphite bulls, thanks to the announcement of a 93.5% anti-dumping duty on Chinese natural and synthetic graphite producers in the US. The measure was lobbied for by a consortium of American graphite hopefuls, including Novonix (ASX:NVX) and Syrah Resources (ASX:SYR), which are attempting to establish, respectively, synthetic and natural graphite based battery anode material factories in the US. NVX shares charged 18% after the preliminary determination by the US Department of Commerce, which would make the effective tariff rate on Chinese graphite some 160%. Final determinations on the DoC investigations are due on December 5. Novonix CEO Michael O'Kronley said the decision underscored the 'strategic importance' of building a North American graphite supply chain. It owns one operating plant in Chattanooga, with Riverside, while a second known as Enterprise South is also being planned for an eventual total production rate of 50,000tpa. "It affirms our business strategy as well as the diversification strategy of our customers to source critical battery materials and components locally," O'Kronley said. "Novonix, with the most advanced synthetic graphite production facility in North America, will be increasing significantly the United States production of an essential strategic mineral while strengthening American manufacturing, and creating high-quality jobs locally.' The ASX 300 Metals and Mining index rose 3.63% over the past week. Which ASX 300 Resources stocks have impressed and depressed? Making gains Iluka Resources (ASX:ILU) (mineral sands/rare earths) +33.8% ioneer (ASX:INR) (lithium) +25% IperionX (ASX:IPX) (titanium) +23.8% Lynas (ASX:LYC) (rare earths) +21.9% Eating losses Ora Banda (ASX:OBM) (gold) -10% Vulcan Energy Resources (ASX:VUL) (lithium) -8.9% Catalyst Metals (ASX:CYL) (gold) -6.8% South32 (ASX:S32) (diversified) -5.8% After the news of the DoD and Apple's big investments in US rare earths producer MP Materials, investors are lining up in both rare earths and US critical minerals, powering the outsized gains for Iluka, Ioneer, IperionX and Lynas. South32 was a notable loser given its $13bn heft, flagging issues around electricity supply at its Mozal aluminium smelter in Mozambique.
Zawya
08-07-2025
- Business
- Zawya
FAO: Meat and dairy lift food prices as sugar falls
Global food commodity prices edged up in June 2025, driven by rising costs for meat, dairy, and vegetable oils. The Food and Agriculture Organization's (FAO) index FAO Food Price Index rose modestly by 0.5% from May and was 5.8% higher than a year earlier, despite falling prices for cereals and sugar. Overall, food prices remain elevated compared to last year but are still below the peak reached in early 2022. Food Price Index rises slightly in June The cereal price index fell by 1.5% in June compared to May. World maize prices declined sharply for the second month amid abundant supplies from Argentina and Brazil. Prices of sorghum and barley also decreased. Wheat prices, however, increased due to weather concerns in parts of the European Union (EU), Russia, and the United States. International rice prices dipped slightly, mainly for Indica varieties, reflecting softer demand. The vegetable oil price index rose 2.3% from May, led by gains in palm, soy, and rapeseed oils. Palm oil prices climbed nearly 5% on strong global demand. Soy oil prices increased due to expectations of higher biofuel demand in Brazil and the USA, as well as stronger soybean prices in South America. Rapeseed oil prices rose amid tight global supply, while sunflower oil prices eased due to improved production in the Black Sea region. The meat price index increased by 2.1% in June, hitting a new all-time high. Prices rose for bovine, pig, and ovine meats, while poultry prices continued to fall. Dairy prices up; sugar falls to lowest since 2021 The dairy price index rose 0.5% in June. Butter prices reached a record high amid tight supplies in Oceania and the EU, alongside strong demand from Asia. Cheese prices increased for the third consecutive month, while skim and whole milk powder prices declined due to ample supply and subdued demand. The sugar price index dropped 5.2% from May, marking its fourth consecutive monthly decline and reaching its lowest level since April 2021. This decline reflects improved production prospects in Brazil, India, and Thailand. Record global cereal production forecast FAO also released its latest Cereal Supply and Demand Brief , forecasting global cereal production in 2025 to reach an all-time high of 2,925 million tonnes—up 0.5% from last month and 2.3% above 2024 levels. This upward revision is driven by improved outlooks for wheat, maize, and rice. However, hot and dry weather in key producing regions could impact yields, particularly for maize. Wheat output is forecast at 805.3 million tonnes, boosted by higher-than-expected yields in India and Pakistan. Maize production is expected to increase due to favourable conditions in Brazil and larger planted areas in India, offsetting declines in Ukraine and the EU caused by dry weather. Rice production is projected to reach a record 555.6 million tonnes (milled basis), supported by better prospects in India, Bangladesh, Pakistan, and Viet Nam. Despite strong overall forecasts, hot and dry weather in some key regions may reduce maize yields, posing risks to supply. Global cereal use and stocks expected to increase Global cereal utilisation in 2025/26 is forecast at 2,900 million tonnes, up 0.8% from 2024/25. Use of coarse grains has been revised upward, while wheat use forecasts were slightly lowered. Rice consumption is expected to rise, driven by food demand and ethanol production in India. World cereal stocks at the end of the 2025/26 season are projected at 889.1 million tonnes, a 2.2% increase from opening levels. The global stocks-to-use ratio is expected to rise to 30.3%, indicating a comfortable supply outlook. Cereal trade projected to grow Global cereal trade in 2025/26 is predicted to reach 486.9 million tonnes, up 1.2% from the previous year. Wheat and rice exports are forecast to increase, with rice trade reaching an all-time high of 60.8 million tonnes. Maize trade is expected to decline slightly, while trade in barley and sorghum will likely rise. The Agricultural Market Information System (AMIS), hosted by FAO, also published its monthly Market Monitor. This edition includes an article on strategic grain reserves (SGRs) and food security, offering principles to keep SGRs small, simple, and smart. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
