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Lithium Giant Albemarle Nears $4.3 Billion Liontown Takeover

This article from Bloomberg may be of interest. Here is a section:

A deal would cement the stunning rise of the Australian lithium sector, where the share prices of newly founded and previously little-known companies have soared more than 10-fold amid surging demand for the metal. The race for lithium has mining heavyweights, battery manufacturers and automakers from Rio Tinto Plc to Tesla Inc. chasing deals with firms with even early stage or pre-production projects.

Liontown, based in Perth, owns one of the most promising early-stage lithium projects in Australia, the world’s top exporter of the metal. It has supply agreements with major automakers including Tesla and Ford Motor Co.

US-based Albemarle, which already owns stakes in lithium mines in Australia and has a processing plant there, offered to acquire all of Liontown’s equity at A$3 a share. That follows a bid of A$2.50 in March.



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Cocoa Prices Surge on Poor Crop, Limited West Africa Sales

This article from Bloomberg may be of interest. Here it is in full:

Cocoa futures rallied in New York and London amid signs of weak forward sales from producing countries in West Africa that have been slammed by deteriorating crops. 

Even as heavy rains that wrought havoc on cocoa farms across West Africa have finally subsided, crop development continues to be very poor. Reports of swollen-shoot disease in top grower Ivory Coast and a shortage of fertilizers in the second-largest producer, Ghana, are among key concerns.

“Trees have not recovered as expected,” said Marex co-head of agriculture Jonathan​ Parkman, noting more research is needed to understand why the trees haven’t recovered better after the end of the rains.

Forward sales are also getting hit by confusion over new European deforestation regulations, Parkman said. Some sellers are afraid of getting hit with penalties if they can’t prove their beans come from a deforestation-free area. 



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Email of the day on silver's contango

I am asking why the next expiry in Silver futures is so much higher than it seems to me than in the past, is it simply because rates are higher?



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Florida Faces Major Hurricane Threat as Idalia Strengthens

This article from Bloomberg may be of interest. Here is a section: 

The exact spot Idalia will come ashore isn’t certain. “It cannot be emphasized enough that only a small deviation in the track could cause a significant change in Idalia’s landfall location,” Brown wrote. 

If it reaches forecast strength, Idalia would be the first major hurricane to hit Florida since last September when Hurricane Ian struck the western part of the state as a Category 4 storm, killing at least 150 people and causing more than $112 billion in damage, the hurricane center said. 

Idalia is expected to stay in the eastern Gulf, away from offshore oil and natural gas production. Most of the key citrus areas in central Florida would not be seriously impacted, World Weather Inc. President Drew Lerner said.



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Corn Harvest Is in Trouble as US Heat Fuels More Damage

This article from Bloomberg may be of interest. Here is a section:

“Things are changing right in front of our eyes,” said Thayne Larson, who has grown alfalfa, hay, corn in Kansas for 50 years. “It’s so disappointing when you have what you thought could be a healthy crop, and then the conditions just become extremely, extremely challenging.”

Crops Go ‘Backwards’ 
With food security already under threat from Europe to Asia, the world has been counting on a big corn harvest to help keep food inflation at bay. A disappointing US harvest could have ripple effects on markets across the globe.

Much will come down to Iowa, the No. 1 US corn grower and where sixth-generation farmer Ben Riensche is for the first-time ever watching his crop go “backwards” because of the heat. 

His corn stalks went from bright and green to slightly gray. Instead of sitting tight against the plant, the corn ears are flopping down, the husk has turned brown and the bottom of the stalk — where the plants connects to the roots that go deep underground — looks like it’s been burned. It means that the plant is dead.



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Ex-JPMorgan Gold Traders Get Prison for 'Prolific Spoofing'

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Smith and Nowak “used their positions as some of the most powerful traders in the worldwide precious metals markets to engage in an egregious effort to manipulate prices for their benefit,” Acting US Assistant Attorney General Nicole M. Argentieri said in a statement, adding the Justice Department was committed to holding “accountable those who engage in fraud and manipulation that undermines the investing public’s trust in the integrity of our commodities markets.”



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On way back from Brics Summit in South Africa, Modi skeds a quick visit to Greece

This article from the Hindustan Times may be of interest. Here is a section:

Speculation about a Modi-Xi meeting has grown following a series of high-level contacts between India and China in recent weeks. Both National Security Adviser Ajit Doval and external affairs minister S Jaishankar have met top Chinese diplomat Wang Yi, who is currently the foreign minister, on the margins of multilateral gatherings in recent weeks.

The joint statement issued after the latest meeting between Indian and Chinese military commanders on the standoff on the Line of Actual Control (LAC) has also fuelled speculation about a Modi-Xi meeting in Johannesburg. The statement, issued after the talks held during August 13-14, had described the discussions as positive and constructive.



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Hurricane Hilary Intensifies as Storm Charts Path to California

This article from Bloomberg may be of interest to subscribers. Here is a section: 

Still, Hilary is expected to bring widespread heavy rain to California and the US Southwest, raising risks of power outages, mudslides and flooding along with disruptions to ground transportation and air travel. The rain could start in the region as early as Saturday, with the worst of it arriving late Sunday into Monday.

A wide area could get 2 to 4 inches, Douty said, which would be similar to the powerful winter storms that sometimes hit California and bring flooding. Desert communities, such as Palm Springs, as well as the many railroad lines that cross the area and pass through the mountains could also be imperiled, he said.

Flood watches cover parts of California, Arizona, Nevada, and Utah, including Los Angeles, San Diego and Las Vegas. Flooding could be worst across Southern California, especially around San Diego, the California Governor’s Office of Emergency Services said in a statement.



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Eoin's personal portfolio: commodity trading and investment positions closed



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China Halts Youth Jobs Data, Stoking Transparency Concerns

This article from Bloomberg may be of interest. Here is a section:

The move is the latest example of how President Xi Jinping’s government is limiting access to information in order to more closely guard data it deems sensitive and manage the narrative about the weakening economy.

China has over the past year limited access to corporate data, court documents, academic journals and raided expert networks serving businesses, hampering investors’ ability to assess the economy. Officials have also been downplaying economic risks like deflation, with some Chinese-based analysts saying they were instructed by regulators and their companies not to discuss the matter publicly.



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