The Paradigm Shift Channel ⏳

2022-05-28 00:22:31 Oil Tanker Piracy/Robbery has begun on the high seas between Greece (following US orders) and Iran retaliating!

The United States has confiscated Iranian oil held on a Russian-operated ship. The ship formerly named Pegas, (renamed Lana on March 1st using the same IMO 9256860) is near Greece and will send the cargo to the United States aboard another vessel.

Iran responds in kind - Two Greek oil tankers have been boarded by Iranian military personnel while navigating through the Middle East Gulf. The vessels had loaded at Basrah, Iraq, and is carrying an oil cargo for the US. Western outlets say 'international waters'. Iran's media says the Delta Poseidon was seized in front of Asalouyeh port, while Prudent Warrior was seized in front of Bandar Lengeh port both in Iran's territorial waters). Open / Comment

2022-05-27 19:28:32 Fire demolished a grain storage facility in Prosser, Benton County, Washington USA, and left one person with burns. M & E Seed and Grain Co. owned the property. A smoldering pile of twisted metal and charred lumber was all that remained. About 22 fire units from various fire agencies through the valley were called out to the old feed store and grain elevator where flames could be seen shooting into the air. Open / Comment

2022-05-26 22:16:50 California adopted an emergency water conservation regulation to “ensure more aggressive conservation by local water agencies across the state”. Commercial, industrial and institutional properties cannot water their turf with few exceptions. Major water reservoirs have been largely used with capacities well below their historical averages. The most intense week of drought in the past 22 years was in late July 2014.

"Exchange contract" is pitting California farmers against each other. This legal agreement never mattered much during wet years, but during droughts it allows a small group of Central Valley farmers to claim enormous amounts of water while their neighbors make deep cuts. Officially, water rights in the U.S. operate on a principle of seniority. Open / Comment

2022-05-26 15:40:01 Natural gas futures spiked to $9.40 per million Btu earlier today, the highest since the huge twin spikes between 2005 and 2008. Price have have tripled from a year ago, when it was $2.98, and have more than tripled from the $2-3 that predominated from 2011 through the spring of 2021.

U.K. Treasury Chief today outlined a new 25% tax on the profits of oil-and-gas companies and will be used to fund subsidies for households.

Bolivia said it is seeking higher prices for natural gas sold to Brazil's state-run Petrobras. Bolivia's energy ministry said Petrobras pays between $6 and $7 per million BTU for Bolivian natural gas, while alternative private buyers in Brazil are willing to pay between $15-$18 per million BTU. Open / Comment

2022-05-26 15:11:18 Europe’s energy 'independence' push and sanctions against Russia weigh on the steel industry. Reports of decreasing retail steel sales is preventing any expected price increases due to drop in production. Steelmakers rely on natural gas for ironmaking in blast furnaces as well as for steelmaking in electric arc furnaces.

Traders -“Energy costs are hitting people hard. There are more defaults on energy bills.” "Summer holidays in the Northern Hemisphere will also mean lower building activity and lower demand. This is sure to put further downward pressure on steel.

Chinese iron ore port inventories registered their sharpest decline of the past 12 months. This is with rebar production well off last year levels. (Photo)

India imposed an export tax of 15% on some steel products last weekend, at a time steelmakers are looking to make up for tepid local demand. The taxes were part of a series of measures India has taken to rein in retail inflation. Open / Comment

2022-05-26 00:10:06 Update to Monday's post on the Canadian Pacific freight train derailment of potash fertilizer east of Fort Macleod in southern Alberta, Canada which occurred on Sunday morning. Clean up is underway and rail track repairs close to completion. No injuries reported.

This coincidently comes after last week's collision between a potash cargo train which derailed and a passenger train in Catalonia, Spain, which killed one and wounded 85 people. The collision took place at Sant Boi station in northeastern Spain.

BHP to accelerate construction timelines on its multibillion-dollar Jansen potash mine project near Humboldt, Saskatchewan, Canada.

The Canadian government is urging farmers to increase production of wheat, barley and other grains this year. Open / Comment

2022-05-25 23:31:48 Europe’s primary aluminium smelters are continuing to curtail production in the face of soaring energy costs. The region’s output of the light metal has fallen by an annualised 550,000 tonnes over the last year with the slide still accelerating. European buyers are paying record physical premiums or that aluminium is now being imported from as far away as China. Aluminium smelting is an energy-intensive business and Europe’s smelters are struggling with elevated power pricing.

5.3% demand growth for the aluminium industry in North America (U.S. and Canada) through Q1 2022. Aluminium exports (excluding scrap) to foreign countries declined 29.8%. Imported aluminium and aluminium products into the North America (US and Canada) grew by 37.4% year-over-year in the quarter after growing 21.3% in 2021.

Aluminium is trading near $3,000 USD/ton, after hitting all-time high of $4,000 USD/ton in March. Main uses include auto industry, construction, long distance power lines, food/beverage cans and electronics. Open / Comment

2022-05-25 23:24:44 Lithuania claims to have dropped Russian energy imports including oil, natural gas and electricity.
For liquefied natural gas, the terminal in Klaipėda has received cargoes from the US. At the same time, local power generation and imports from EU countries through existing interconnections with Sweden, Poland and Latvia cover the country’s electricity needs.

Reality- However, Inter RAO, the only importer of electricity from Russia to Lithuania, confirmed the suspension of deliveries. "Inter RAO has received notices from [exchange operator] Nord Pool about the suspension of trading by subsidiaries due to the risk of being unable to pay for Russian electricity,".

Annual inflation in Lithuania was 16.8% in April, compared to the same period in 2021. The price changes were mainly driven by higher fuel and heating costs. The most expensive items in April this year, were water, electricity, gas, and other fuels, the price of which increased by 37.9% Open / Comment

2022-05-25 01:18:12 Avian influenza (Bird Flu) has already impacted more than 37 million birds across 34 US states this year. The fast-spreading virus has sent the production of eggs tumbling and prices at the supermarket soaring. US eggs in April plunged as millions of egg-producing hens were slaughtered to mitigate the virus' spread.

The 2021-22 outbreak of avian flu in North America is already the worst in seven years among U.S. domestic flocks. So far about 38 million domestic birds have died in the outbreak, mostly through depopulations at infected poultry farms.

Farms in B.C. and Alberta, Canada are latest to have confirmed outbreaks of avian influenza. Open / Comment

2022-05-25 00:13:52 Wheat prices have surged to record highs over the past two months as major producers like Russia, Kazakhstan and India scrapped exports to protect their domestic markets. Anti-Russia sanctions forced international companies to sever long-standing business ties and leave Russia, which caused supply disruptions.

World Economic Forum (WEF) in Davos, Switzerland, David Beasley, executive director at the UN World Food Programme, warned the world's food security conditions are "worse" than what was observed during Arab Spring over a decade ago.

U.S. spring #wheat planting is advancing at the slowest pace in more than 20 years and was only 49% complete as of Sunday. Average for the date is 83%. Minnesota is only 11% planted vs 90% avg. North Dakota 27% vs 80% avg. Those two states grow two-thirds of the U.S. crop. Open / Comment