Trade tensions between the US and China escalated after Beijing raised tariffs to a maximum of 25% on $60 billion worth of US goods in retaliation to the latest round of tariffs imposed by Washington. China's vice minister of agriculture and rural affairs Han Jun said the retaliatory tariffs now cover all US agricultural product exports to China, including soybeans.
Senior executives from China and Russia's oil and gas industry will meet at the Second Russian-Chinese Energy Business Forum on June 6–7 in St. Petersburg. The China-Russia energy relationship has become all the more crucial for China's energy security amid US-China trade disputes and the US sanctions on Iran and Venezuela.
In the wider oil market, participants are keeping a close eye on Middle Eastern crude oil official selling prices for Asia.
Meanwhile, new-build tankers are loading gasoil for deliveries as buyers are already stocking up months ahead of the implementation of the new sulfur emission cap on marine fuels. New special reports on IMO 2020 and its potential impact on the oil, shipping and petrochemical markets.
In coal, the market expects Australian coal producers to produce more semi-soft coking coal as the differential between SSCC and thermal coal prices widened to about $20 last week on falling Newcastle 6,000 NAR prices. A wide differential between thermal coal and SSCC prices means Australian producers can earn more profit by washing thermal coal to produce SSCC.
And in the corn market, participants in remain bullish after Asian prices rose almost 4% on week last week. Planting has been delayed in the US Corn Belt, pushing prices on the Chicago Board of Futures to their highest levels see in the past 12 months.