FINWIRES · TerminalLIVE
FINWIRES

Market Chatter: SouthEast Asian Rice Farmers Bear Brunt of Burgeoning Costs Amid Middle East Conflict

By

-- Rice farmers across South and Southeast Asia face mounting cost pressure ahead of the planting season as fertilizer prices spike, raising concerns over regional food supply, Nikkei Asian Review reported Wednesday.

Fueled by geopolitical instability in the Middle East, urea prices climbed 18% in April after surging 54% in March. Benchmark urea prices hit $857 per ton in April, according to the World Bank, more than doubling from a year earlier and surpassing March's four-year high, the report said.

This follows the closure of the Strait of Hormuz, which disrupted exports from Qatar and Saudi Arabia. The two countries account for roughly a third of global supply, according to the report.

Higher input costs are forcing farmers to cut fertilizer use, risking weaker yields as the rice-growing season begins. With Asia heavily reliant on Gulf supplies, prolonged disruption could trigger shortages, while rising energy and transport costs may push overall production expenses up by as much as 80%, the Nikkei said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Related Articles

Oil & Energy

EMEA Natural Gas Update: Futures Slip Amid Strong Renewables Output, Mild Weather

European natural gas futures opened lower on Wednesday with no major advances in the US-Iran conflict, while relatively strong renewables output displacing gas-fired generation and mild weather averting consumption from air conditioning were among influences.Dutch TTF futures were down 2.2% to 45.88 euros ($53.83) per megawatt hour while UK NBP futures fell 2.9% to 111.7 British pence ($1.52).ANZ Senior Commodities Analyst Daniel Hynes said in a daily update that cooler European temperatures and strong renewables output were one reason why its benchmark futures prices were not currently climbing.US President Donald Trump said in a social media post on Tuesday that he was pausing Project Freedom or the escort of ships through the Strait of Hormuz, at the request of mediator Pakistan and "other countries" while the US would continue to block access in and out of Iranian ports.Trump said that Project Freedom "will be paused for a short period of time to see whether or not the Agreement can be finalized and signed," in reference to a deal he is seeking with Iran, with the abandonment of its nuclear enrichment ambitions chief among his demands.Speaking to reporters on Tuesday, Trump said that while higher, he said energy prices had not risen that dramatically and he said the higher prices were "a very small price to pay," to prevent Iran from developing a nuclear weapon.He said Iran's economy meanwhile was on the verge of collapse with galloping inflation, army salaries unpaid and a worthless currency. Trump also reiterated that Iranian negotiatorscontinued to engage keenly with the US behind the scenes while telling the public no such engagement was taking place.Analysts have grown somewhat immune to such messages with no significant progress on the single most pressing issue - the reopening of the Strait of Hormuz through which 20% of the world's oil and LNG-gas supplies flowed prior to the conflict.

Asia

SPML Infra Secures New Order Worth INR11.3 Billion; Shares Up 4%

SPML Infra (NSE:SPMLINFRA, BOM:500402) has bagged an order worth 11.3 billion Indian rupees from power producer NTPC (NSE:NTPC, BOM:532555), according to a Wednesday filing to the Indian stock exchanges.The contract is to develop a 1 GWh battery energy storage system (BESS) at NTPC's Barauni Thermal Power Station in Bihar, India. The company will undertake the supply, civil works, and erection of the 250 MW/1,000 MWh BESS, comprising 5 MWh DC containers with battery management system and thermal management system, and all associated accessories.The project will be executed over 18 months period, followed by 15 years of operation and maintenance.The company's shares were up nearly 4% in recent trade.

$BOM:500402$BOM:532555$NSE:NTPC$NSE:SPMLINFRA
Asia

Magni-Tech Industries to Buy Penang Land for MYR133 Million

Magni-Tech Industries (KLSE:MAGNI) unit Magni Land signed an agreement to acquire a freehold land parcel in Penang, Malaysia, according to a Tuesday filing with Bursa Malaysia.Shares of the apparel maker gained 1% in Wednesday's midday trade.The 19,080-square-meter property is being purchased from Neoh Choo Ee & Co. for 133.3 million ringgit.Magni-Tech intends to use the property for potential development or long-term investment.

$KLSE:MAGNI