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Ukraine sunoil exports fell 36.2% in April year-on-year, according to traders' union
Ukraine, which is the largest sunflower oil exporter in the world, has reduced its exports of sunoil to 417, 000 metric tons from 654,000 tons a year ago and 503, 000 tons in March. This was down from 654,000 tons a month earlier as well as from 503, 000 tons in march, according to the Ukrainian traders' union UGA. The union did not give any reason for the decline. Some sunoil refineries have been forced to stop production and exports due to a spike in sunflower seed prices. This was caused by the smaller harvest. According to the Ukrainian UCAB agricultural association, this year Ukraine's exports of sunoil could drop to 4,74 million tonnes in 2024/25 from 6,25 million tons during 2023/24 season as the sunseed crop fell 21,4% to 11 millions tons. UCAB reported that Ukraine's total agricultural exports fell by 23.4% in April compared to the previous month, reaching 4.1 million metric tonnes. It also noted that exports were down in almost all product categories. (Reporting and editing by Louise Heavens, Pavel Polityuk)
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South Korea's MFG purchases about 67,000 T of corn, traders claim
Major Feedmill Group of South Korea (MFG) bought approximately 67,000 metric tonnes of animal feed corn at an international tender held on Thursday. The corn was expected to come from South America, traders in Europe said. A consignment of grain was purchased at an estimated cost and freight rate (c&f), plus an extra $1.20 per ton for port unloading. The seller was thought to be CJ International, with grain due for arrival in South Korea on September 10. Two consignments of 55,000 to 70,000 tons corn were requested for arrival in South Korea. The other consignment, which was also said to include MFG partner Cargill Agri Purina, for arrival in August has not been reported as a purchase. If South America was the source of the consignment, it was sought to be shipped between July 13 and august 1 if they were from South America. The reports reflect the opinions of traders, and it is still possible to estimate prices and volume later. South Korean importers have continued to purchase heavy corn in the last two weeks, following a drop in Chicago corn prices. South Korean buyers are traditionally active ahead of the U.S. Department of Agriculture's (USDA) monthly report on world grain and oilseeds, which can create market turmoil. The USDA report will be released on Monday. Michael Hogan (reporting, Susan Fenton, editing)
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South Korea's MFG purchases about 67,000 T of corn, traders claim
Major Feedmill Group of South Korea (MFG) bought approximately 67,000 metric tonnes of animal feed corn at an international tender held on Thursday. The corn was expected to come only from South America, traders in Europe said. A consignment of grain was purchased at $239.67 per ton, cost and freight included. There was also an extra $1.20 surcharge per ton for port unloading. The seller was thought to be CJ International, with grain due for arrival in South Korea in September. Two consignments of up to 140 000 tons of corn were requested for arrival in South Korea. The tender for the August arrival of corn was not won by the second consignment, which also included MFG partner Cargill Agri Purina. The reports reflect the assessments of traders, and it is still possible to estimate prices and volume later. Michael Hogan is reporting.
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U.S. natural gas liquids exports reach record highs in April
Ship tracking data revealed that U.S. natural gas liquid exports reached a new record in April despite a trade dispute between the U.S. Recent trade developments have put at risk U.S. Exports of Natural Gas Liquids (NGLs), like ethane butane and propylene, which are used in the manufacture of plastics, chemicals, as well as heating and cooking. U.S. Exports have reached a new record every year since 2010, thanks to an abundance cheap shale gas. NGLs are the newest energy products caught up in the trade war between two of the largest economies. According to the U.S. government's statistical agency, nearly half of U.S. exports of ethane go to China. China has no other options, as there are few alternatives. Chinese petrochemical companies use it as a feedstock as it is cheaper than alternatives naphtha. Meanwhile, U.S. producers of oil and gas need China to purchase their natural gas liquids because domestic supply exceeds the demand. Data from the ship tracking companies Kpler & Vortexa revealed that in April, the U.S. exported NGLs at a record-breaking rate of 2.9 million barrels a day (bpd). Kpler data shows that exports to China dropped 35% in November to 619,00 bpd, the lowest level since November 2023. Two sources said this week that China has waived the 125% duty on imports of ethane from the U.S., imposed earlier in the month. In the global rerouting of oil, other countries have increased their purchases of U.S. NGLs to compensate for the loss of Chinese purchasing. Kpler data shows that India has more than tripled the amount of oil it purchases, reaching a new record of 179,000 barrels a day. Brazil increased its purchases by more than doubling to 113,000 barrels per day, which is the highest level in five years. Japan, as the second-largest buyer of U.S. Natural Gas Liquids, increased shipments to nearly 400,000 barrels per day, the most since February 2023. The Energy Information Administration predicted that U.S. ethane production would rise by 3.6% this year to 2.9 millions bpd. It added that the majority of this increase in production would be exported to meet growing international demand. In a quarterly earnings conference, Jim Teague, co chief executive officer Enterprise Products Partners, one of the largest exporters of U.S. Natural Gas Liquids, said that the market had already begun rerouting the barrels to the Middle East and U.S., which are the two biggest suppliers of liquefied petrol gas (a mixture of butane and propane). The biggest importers were China and India. The company stated that it did not see any disruptions in its exports of butane, ethane or propane. Rival Energy Transfer is also one of the largest exporters in the U.S. of NGL and said that it had no problem finding a buyer for its LPG or ethane. Enterprise Products reported that total NGL pipe transportation volumes increased 5% while volumes at marine terminals grew 11%. Energy Transfer increased its NGL exports by 5% and transportation volumes by 4%. (Reporting and editing by David Gregorio in Houston, Arathy McCartney and Georgina Mccartney from Houston)
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Tariffs are expected to end the near-record US container import streak in May
U.S. containers imports surged as companies raced against President Donald Trump's new tariffs. These include a 145% tax on goods imported from China. However, executives at two of the busiest ports in the country said that the trend was likely to reverse itself in May. Descartes, a provider of supply chain technology, reported that April container imports increased 9.1% compared to a year ago, topping 2.4 million 20 foot equivalent units (TEUs), which is the second highest monthly total ever. Imports of goods from China, which is the U.S.'s top maritime trading partner, increased by 6.2% in April and represented 33.4% all imports. Trump imposed 145% tariffs against China on April 9, more than doubling their cost to U.S. consumer. This prompted retailers such as Walmart, Amazon.com, and other importers, like Walmart and Amazon.com, to suspend or cancel certain factory orders. He also imposed tariffs of 10% on other countries and warned that these rates could rise. The Port of Los Angeles is the nation's leading gateway for goods from China and the United States' No.1 seaport complex. This week, import cargo will drop 35% year-over-year at the port. The United States' No. 1 seaport complex, and the nation's top gateway for Chinese goods, is expected drop by 35% this week. Seroka said that the overall May ship traffic may decline by around 20%, as operators of large cargo ships cancel their scheduled voyages because demand is weak. Trucks and trains are used to transport many of the goods entering the Port of Los Angeles or the adjacent Port of Long Beach across the United States mainland. Port of Long Beach CEO Mario Cordero anticipates a 20% drop in May compared to a year earlier. Descartes stated that the rapidly evolving U.S. Trade Policies and the retaliatory actions of U.S. Trading Partners as well as the ongoing instability in the Middle East, and Eastern Europe raises the risk of global supply chain disruption. Descartes stated that "the full impact of tariffs - and the expiration of de minimis exemption on May 2 - has yet to reflect in import volumes from China", referring to the popular duty-free shipping for low-value shipments out of China and Hong Kong. (Reporting and editing by Nia William in Los Angeles, Lisa Baertlein from Los Angeles)
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Doba crude oil to be imported in greater quantities thanks to new Mediterranean fuel regulation
Dutch and German oil refining companies have purchased all four cargos of Chadian Doba Crude in April, to take advantage of the soaring demand in Europe for cleaner marine fuel from shipping companies such as Maersk. Kpler reports that Asia was the primary destination for Doba cargoes before April. China and Malaysia both received multiple cargoes. The International Maritime Organization (IMO) designated the Mediterranean Sea an Emission Control Zone in May. This means that ships must switch from 0.5% sulphur to 0.1% sulphur. Exports of Doba crude to Europe soared as a result. The heavy, sweet Doba is ideal for ultra-low sulfur fuel oil (ULSFO), which has a maximum of 0.1% sulphur. Rystad Energy analyst Valerie Panopio said that Doba was ideal for ULSFO blending. Increasing exports to Germany in April and to the Netherlands could be a way to take advantage of the expected surge in ULSFO. She said that there are not many grades of coffee with the same qualities as Doba Blend. Even harder to find, is one in a steady and ample supply. Shipping data from Kpler indicates that Chad exports approximately 130,000 barrels of this grade per day and regularly ships it to Asia and Europe, as well as the Middle East. According to Kpler, four Suezmax vessels were in place in April, delivering about 127,000 bpd Doba into Europe. This would be the highest volume of Doba on this route in an entire year. Kpler data show that two oil refineries, including Chane's Rotterdam facility in the Netherlands and HES International Wilhelmshaven in Germany, have been the sole European recipients of Doba Crude since January. Maersk Energy Markets (the Danish shipping company’s bunker buyer) has signed a contract to purchase ULSFO at Chane’s Rotterdam facility to make its fleet compliant with new requirements for the Mediterranean, Maersk announced. Chane and HES did not reply to requests for comments sent via email. Enes tunagur reported the story. (Editing by Alex Lawler and Dmitry Zhdannikov)
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Sources say that Indonesia's Karimun Terminal is a key Russian oil hub
According to eight sources in the industry and data from ship tracking, Indonesia's Karimun Terminal has increased imports of Russian oil to become a major transshipment hub. This is where traders store cargoes that are rebranded to reflect their countries of origin before being reexported. After Moscow's invasion of Ukraine in 2022, Russian oil exports shifted from Europe to Asia. Western sanctions meant to limit Moscow's oil revenues make direct imports of Russian oil difficult for many buyers. The system of traders and shippers, as well as the transshipment points in Fujairah, United Arab Emirates and the floating hubs along the Malacca Straits, Singapore Straits, and the Straits of Malacca, has helped to keep Russian oil flowing despite sanctions. Kpler's ship tracking data showed that since October, the terminal located in a free-trade zone on an island 37 km (23 mi) southwest of Singapore has received Russian oil every month. The exports were to Malaysia, Singapore, and China. The data indicates that before this, Russian oil products were arriving at Karimun only on a sporadic basis. Kpler data shows that more than 500,000 tons of fuel oil (3.2 million barrels), loaded at Russia's Ust Luga terminal, have arrived in Karimun this year. This is nearly five times as much as the volume for the same period in 2024. Karimun has received 217,000 tons of Russian diesel this year, as opposed to none last year. The imports of Russian naphtha this year are also up from the previous year. Kpler data shows Karimun exporting a record amount of oil products. This helped keep Asia supplied with refined products. Sources spoke under condition of anonymity, as this is a sensitive matter. Indonesia's Energy Ministry said that it had no information about activities in Karimun, as it was a free-trade zone outside its jurisdiction. Requests for comments were not responded to by officials at Indonesia's Coordinating Ministry of Economics, which is a part of the Special Economic Zone and the Free Trade Zone Board. Novus Middle East DMCC of Dubai, which purchased the 720,000 cubic metre PT Oil Terminal Karimun from Germany's Oiltanking in the second quarter of last year, has not responded to a comment request. PT Oil Terminal Karimun did not also respond to a comment request. SANCTIONED TANKERS Kpler data shows that the share of Russian oil imports to the Karimun Terminal has jumped from 0-26% per month during the first half 2024, to over 60% in October, and as high as 100 percent in April. Kpler data shows that at least three cargoes were delivered to Karimun between March and April by tankers sanctioned either by the European Union (EU) or Britain. Three sources claim that some of these cargoes get blended before being re-exported. Eight sources confirmed that cargos are transported through intermediaries - often unidentified trading firms whose names change frequently - before reaching their final destination. Tan Albayrak is an international trade attorney specializing in economic sanctions and export control at Reed Smith LLP. He said that a storage facility can be exposed to sanctions if it receives cargoes from a vessel sanctioned, but blending or refining products would give a new country as the source. Albayrak stated that if the oil product received was transformed into another oil-product, it would be considered Indonesian and the sanctions against Russia will not apply. He added that "at this point, there wouldn't be any exposure to players further down the chain such as buyers or traders."
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Initial report: Cause of Heathrow fire shutdown still unknown
In an interim report released on Thursday, the National Energy System Operator stated that the cause of the fire in the substation at Heathrow Airport was still unknown. The Heathrow airport closure on March 21, the busiest in Europe, cost airlines tens and millions of pounds. It also left thousands of passengers stranded. The incident also raised concerns about the resilience and stability of Britain's transport infrastructure. NESO, the company that manages the electricity network in the country, announced it would release a final report about the outage by June. The report will include recommendations regarding the resilience of the energy systems, as well as plans for restoration and response. The police reported In March, The fire was not suspicious. NESO's interim report stated that the London Fire Brigade, National Grid Electricity Transmission and other investigators are continuing to investigate the cause of fire. The power outage caused a stir among passengers, the government and airlines. They questioned why Heathrow had to close all four terminals and why it was 18 hours before power was restored. Heathrow expressed its hope that the final report will provide answers as to the cause of this fire. The airport stated that "further clarification on how the fire began and why two converters were then impacted can ensure greater resilience of the UK's electricity grid going forward," in a press release. (Reporting and editing by Muvija M., Sarah Young. Catarina demony aqnd Paul Sandle.
Traders say that Taiwan purchases approximately 99,200 T of wheat from the United States.
In a Thursday tender, the Taiwan Flour Millers' Association bought an estimated 99.200 metric tonnes of milling grain sourced from United States, European traders reported.
Two consignments of various types of wheat were purchased for shipment to the U.S. Pacific Northwest Coast.
They said that the first shipment for July 4-18 consisted of 34,550 tonnes of U.S. Dark Northern Spring Wheat with a minimum protein content of 14.5%. The wheat was purchased at an estimated price of $294.11 per ton (fob).
The contract also included 8,600 tons hard red winter wheat with a minimum protein content of 12.5%, bought for $254.16 per ton FOB and 6,700 tonnes soft white wheat with a protein content of between 8.5% and 10%, bought for $243.77 per ton FOB.
Consignment is subject to an additional freight fee of $32.49 per ton from the U.S. Pacific Northwest Coast to Taiwan.
Traders said that Viterra, a trading house, sold the dark northern winter and the soft white in their first consignment. United Grain Corporation then sold the hard-red winter.
The second shipment for the 22nd of July and 5th of August involved 34,100 tonnes of dark northern spring grain with minimum 14.5% of protein purchased at an estimated $284.01 per ton FOB.
The contract also included 9,350 tons hard red winter grain with a minimum 12.5% of protein, bought for $248.61 per ton FOB and 5,900 tonnes of soft white wheat with a minimum of 8.5%/maximum of 10% of protein, bought for $244.58 per ton FOB.
Consignment is subject to an additional freight of $33.03 per ton when shipping by ocean to Taiwan.
Traders said Bunge sold dark northern spring and United Grain Corporation hard red winter in the second consignment, while United Grain Corporation also sold soft white.
The reports reflect the assessments of traders, and it is still possible to estimate prices and volume later. (Reporting and editing by Susan Fenton, with Michael Hogan)
(source: Reuters)