🔹Germany 🇩🇪- Many farmers besiege with tractors 🚜🚜🚜 the Bonn Ministry of Agriculture. German farmers revolt against EU climate change policies and the agenda behind them, which, if carried out, will surely bring the agricultural 🌾 industry to its knees.

Background:
💠 German 🇩🇪 farmers have been protesting 🔥 draconian climate change policies against them in the name of curbing nitrates in groundwater.

💠 There is a blackout of farmers 🚜 protests in European corporate media.

💠 German 🇩🇪 farmers have been standing in solidarity with Dutch 🇳🇱 farmers after the Netherlands plan to cut farmers nitrogen emissions.

🔹Water levels on Germany's 🇩🇪 Rhine River continued to decline today, hitting a new threshold. Top companies exposed to falling water levels that would disrupt barge traffic, 🚢 implying they would have to resort to trucks 🚛 or rail 🚂 to transport goods.

🔹Kaub's reading is just 6 centimeters (2.4 inches) from 2018's record low of 25 centimeters (9.9 inches), which then caused the waterway to close.

Background:
💠 Five days ago a warning ⚠️ was issued of the effects of lower levels.
💠 Freight shipping on the river continues but with vessels 🚢 sometimes forced to sail 75% empty.

💠 German 🇩🇪 companies faced supply bottlenecks and production problems in 2018 for this situation.

💠 This is preventing at least two power 🏭 plants in Germany from getting all the coal they need.

🔹Gold coins 💰used as currency in Zimbabwe 🇿🇼 will soon be available in smaller denominations, the central bank says. Sky-rocketing inflation 📈saw people rushing to cash in their Zimbabwean dollars for US dollars, to stop their savings losing value.

🔹This led to a shortage of US 💵 currency and drove up exchange rates, so the central bank reacted by halting loans. But it soon changed tack, and last month issued gold coins worth US$1,800 instead, to ease demand for US dollars.

🔹Inflation topped 256% in July - and the local currency tumbled in worth from Z$108.66 to US$1 at the start of the year, to 🇿🇼 Z$481.85 to US$1 in August. Banks have sold 4,475 of the one-ounce coins 🪙 so far, with 90% having been purchased with local currency.

🔹The Lithuanian 🇱🇹 Siauliai Bank that facilitates cargo transit payments between mainland Russia 🇷🇺 and its exclave of Kaliningrad went through with an earlier announced decision to stop operations in Russian rubles.

🔹The lender is also planning to completely cease operations with Russia 🇷🇺 and Belarus 🇧🇾 in any currency starting in September. Russia’s state rail operator, Russian Railways, 🚅 said today that it continues to successfully settle with Lithuania 🇱🇹 payments for transit to Kaliningrad but that these settlements are not made in rubles.

Background:
💠 Lithuania 🇱🇹 recently attempted to block Russian 🇷🇺 goods to Kaliningrad via rail citing EU 🇪🇺 sanctions. This action violated existing agreements and was reversed.

🔹China’s 🇨🇳 daily coal ⛏ output in July grew 16% year-on-year on growing energy demand. Overall production in July amounted to 372.66 million tons, or 12.02 million tons per day. China’s power 🔋 generation surged 4.5% year-on-year to 805.9 billion kilowatt-hours 💡. Analysts attribute the increase in power demand to high temperatures, 🌡 which has led to an increased use of air conditioning.

🔹South Africa’s 🇿🇦 coal sales to Europe 🇪🇺 have surged following an increase in demand for fossil fuel amid sanctions on Russia. Thungela Resources reported that its half-year profits were 20-times higher 📈 than the year before. South Africa's coal sales to Europe have risen eight-fold. 📈

🔹Australian 🇦🇺 mining firm BHP revealed that its profits jumped nearly 40% 📈 in the past year despite falling iron ore prices, bolstered by unprecedented demand for coal and copper.

🔹European power 💡prices surged to a record high for a fifth straight day. German 🇩🇪 baseload year-ahead power 🔋prices topped 500 euros today — up almost 500% from a year earlier.

🔹Dutch TTF natural gas futures, 🔥 were up almost 8% 📈 today to 237.50 euros a megawatt hour, their highest level since early March. Gas prices in 🇪🇺 Europe were above $2,600 per 1,000 cubic meters earlier today.

Background:
💠 Natural gas flows via Nord Stream 1 to Germany 🇩🇪 remains @ 20% capacity due to failure by Siemens Germany to service and return gas turbine to Russia's 🇷🇺 Gazprom.

💠 Norway 🇳🇴 will limit electricity 🔌 exports to Europe due to low water levels at hydroelectric power stations.

💠 France 🇫🇷 continues to face restrictions on nuclear 🏭 and hydroelectric power 🔋generation.

💠 Germany 🇩🇪 has moved to the second stage of a three-tier emergency gas plan.

💠 Low water levels on Germany's 🇩🇪 Rhine River continues to prohibit full cargo of coal ⛏ transported to coal power plants.

🔹UK’s 🇬🇧 inflation rate 📈 rose to a new 40-year high of 10.1% in July. It is only the fourth time in 70 years that inflation has breached the 10% threshold.

🔹The biggest increases came for bread 🍞and cereals, dairy, meat and vegetables, with the rising cost of food leading to record increases for restaurant and hotel prices. Price rose for other staple items such as pet food, toilet rolls, toothbrushes and deodorants.

🔹Annual energy 💡bills in Great Britain 🇬🇧 are forecast to rise to more than £3,500 from October, with a further jump to more than £4,200 in January expected, up from a current level of just under £2,000.

Related UK developments:
💠 Britain's 🇬🇧 cap on domestic energy prices is expected to rise by 70% in October.

💠 Dockers at England's Felixstowe (8th-largest container 🚢 port in Europe.) ⚓️ are planning eight days of strike action over pay.

💠 Thames Water may have shut down an emergency ☀️ drought plant (desalination plant in Beckton, east London) to save on power costs.

🔹OPEC Secretary-General Haitham Al-Ghais - "We are running on thin ice, because spare crude 🛢 capacity is becoming scarce. The likelihood of a squeeze is there". Saudi Arabia's 🇸🇦 production stands around 10.5 million bpd and has a production capacity ceiling of 12 million bpd.

🔹Saudi 🇸🇦 Aramco reported a net profit of $48.4 billion for the Q2 of the year, a record figure and a 90% increase on the year thanks to stronger oil prices.

🔹Exports of crude oil 🛢and condensates from Latin America, excluding Venezuela 🇻🇪, have fallen by 700,000 barrels per day to 3.1 million barrels per day in August compared to high levels in July, as more crude is being used by domestic refineries.

🔹Switzerland 🇨🇭might have to resort to using oil for electricity generation this winter as Europe faces low Russian 🇷🇺 natural gas supply. Major energy-intensive industries in France 🇫🇷are looking to convert gas boilers to run on oil 🛢.

🔹Russia 🇷🇺 proposes a new international standard for trading in precious metals: the Moscow World Standard (MWS) which will become an alternative to the London 🇬🇧 Bullion Market Association (LBMA) known to manipulate precious metals markets to depress prices.

🔹The Russian Finance Ministry, precious metals 🪙 prices will be fixed either in the national currencies of key member-countries or using new monetary units used in international trade—for instance, the new BRICS 🇧🇷🇷🇺🇮🇳🇨🇳🇿🇦 currency proposed by Putin.

🔹It aims to swiftly destroy the monopoly of LBMA and to provide for stable development of the precious metals sector. In essence, Russia 🇷🇺 proposes to create a market for gold, platinum, etc., which will be regulated by countries that control the resources for these metals.

💠Maneco64 talks on this today - link

💠My article from April 9th mentioned the moves to bring down the LBMA. - link

🔹Arizona and Nevada 🇺🇸 face deeper cuts on the amount of water they can draw from the drought ☀️-stricken Colorado River. Under new conservation efforts, 21% of Arizona's annual water allocation from the river system will be reduced in 2023. Nevada will see 8% of water deliveries reduced, and Mexico's share will be cut by 7%.

🔹Lake Mead supplies drinking water 💧and agricultural irrigation to 20 million people across seven states. It also generates hydroelectric 🔋power via water flowing back into the Colorado River via the Hoover Dam.

🔹For the Hoover Dam, 🔋 950 feet is the lowest water elevation at which the lake can produce power. It's currently at 1040 feet. Arizona is allocated nearly 19% of the energy 🔌 generated at Hoover Dam.

🔹Germany 🇩🇪- Shell slashed its refinery output at its Shell Energy and Chemicals Park Rheinland fuel-making facility as low Rhine River levels halted the 🚢 flow of goods. Shell did not reveal how much of the refinery’s capacity had been cut. It is capable of processing 345,000 barrels of crude oil per day.

🔹Switzerland 🇨🇭will further tap its strategic fuel stocks as imports along the River Rhine to the land-locked country have almost come to a standstill. The government will release another 490,000 cubic meters -- about 3 million barrels 🛢-- of fuel until the end of September.

Background:
💠 Warnings ⚠️ of Rhine low levels have been recently issued.

💠 Freight shipping on the river continues but with vessels 🚢 sometimes forced to sail 75% empty.

💠 German 🇩🇪 companies faced supply bottlenecks and production problems in 2018 for this situation.

💠 This is preventing at least two power 🏭 plants in Germany from getting all the coal they need.

🔹Venezuela 🇻🇪 had restarted shipments to Europe after 2 years of US sanctions under a deal that allows them to trade oil for debt relief. However, the gov't has now suspended those shipments, 🚢 saying it is no longer interested in oil-for-debt deals and instead wants refined fuels from Italian 🇮🇹 and Spanish 🇪🇸 producers in exchange for crude.

🔹Venezuela's 🇻🇪 own refineries 🏭 are struggling to remain in operation because of lack of investment and lack of repairs. Refined fuels would help them to get back on their feet in terms of energy and industry.

🔹Venezuela's heavy oil 🛢 operations need imported diluents such as heavy naphtha. PDVSA has relied mostly on Iranian 🇮🇷 diluents to turn its extra heavy crude into exportable grades.

🔹US 🇺🇸natural gas prices rise to 14 year highs 📈 as concerns that increasing domestic and European demand for the fuel will result in tighter US supplies ahead of the winter season. Texas' Freeport LNG 🔥is expected to roar back online in October, which will divert more available natural gas supply towards LNG exports, keeping balances tight for the winter season.

🔹The US 🇺🇸 added only 18 billion cubic feet into its natural gas inventories for the week ending August 12. Heading into the fall and winter, this is a comparatively low injection rate. During the same week last year, the inventories gained 46 Bcf. U.S. supplies are still more than 10% below normal levels 📉 for this time of year.

🔹Germany's 🇩🇪 producer price inflation accelerated unexpectedly to a new record high 📈 in July. Producer prices grew 37.2% year-over-year in July, well above the 32.7 percent surge in June. Among other components of the producer price index, prices of intermediate goods increased 19.1% and those for capital goods grew 8.3%.

🔹Evonik Industries AG, the world’s second-largest chemical producer with plants in 27 countries, is substituting as much as 40% of its German gas volumes with LPG and coal, 🔥 and passing some higher costs on to customers. Europe’s largest copper producer, Hamburg-based Aurubis AG, aims to minimize gas use and pass on power costs to customers.

Background:

💠 Low water levels 💧affects trade along Rhine river.

💠 German electricity💡up almost 500% from 1 year ago.

💠 Farmers 🚜 protest climate change policy by German politicians.

💠 German gov't introduces new tax💰on gas users in October.

💠 German politicians continue to play sanction games with Russia's 🇷🇺 gas turbines.

🔹An 8-day strike at the UK's 🇬🇧 largest container port, Felixstowe, could see Britain lose out on nearly £700m ($824m) in trade and "severely disrupt" the supply chain. Maersk, the world’s second-largest container shipping firm, 🚢 said it would avoid the port and instead deliver UK-bound goods to other ports.

🔹Around 1,900 members of the Unite union based at the Port of Felixstowe in Suffolk walked out yesterday in an ongoing dispute over pay. The industrial action is the first of its kind at the port since 1989. Union members which include crane drivers 🏗 and machine operators ⚙️voted by more than 9-1 in favour of strikes.

🔹“Plus all of the products that are on the sea 🚢 which are perishable, which won't be delivered, which will all be waste. Felixstowe, on the Suffolk coast, handles the equivalent of 4m 20-ft shipping containers 🚢 every year.

🔹Norwegian 🇳🇴 owned Norsk Hydro is planning to shutter a 175,000-ton annual capacity aluminum smelter 🔥 in Slovakia. High electricity prices 🔋 is a major factor.

🔹The co. is also facing a workers strike at the largest and most modern aluminium plant in Europe located in Sunndal, Norway. 🇳🇴 The strike will initially lead to a gradual shut-down of 20% of production and a halt in the shipment of products to customers.

🔹The Budel zinc smelter in the Netherlands 🇳🇱, controlled by Trafigura Group’s Nyrstar -- will be placed on care and maintenance from Sept. 1 indefinitely.

💠Europe has lost about half of its zinc and aluminum smelting capacity 🔥within the past year.

💠Europe’s largest copper producer, Hamburg-based Aurubis AG, aims to minimize gas 📉 use.

💠Each ton of aluminum takes about 14 megawatt-hours 💡of power to produce, enough to run an average UK home for more than three years. Zinc requires about 4 megawatt-hours of power per ton.

🔹Lithium carbonate, used for the production of the batteries used in EV's, has risen in the last few months. Lithium mining results in environmental pollution. Improperly disposed lithium batteries can cause landfill fires 🔥. The resultant toxic ☠️chemicals released into the air can impact air quality.

🔹Australia 🇦🇺 and Chile 🇨🇱 are the countries best positioned to capitalize on the lithium rush. Lithium producers in the Sichuan province of China, 🇨🇳 home to factories of some of the world’s biggest companies and the producer of about half the country’s lithium, have either suspended production or lowered their operating rates in response to a electricity crunch.

Recent lithium news:
💠 European Commission 🇪🇺 (EC) may classify lithium as a Category 1A reproductive toxin. Zimbabwe 🇿🇼 lithium reserves & China investment.

💠 Tesla 🚗 and automakers affected by high lithium prices.

💠 EV's face increase costs due to rising commodity prices 📈 of essential materials for EV production.

🔹Europe- New crop report forecasts corn 🌽 yields will drop 16% below the five-year average. That compares with a July forecast of an 8% decline. 📉 It will boost feed costs for livestock herds, adding to even more woes for farmers who are plagued with elevated diesel and fertilizer prices.

🔹US- 🇺🇸 Crop tours show much of the Western crop belt is plagued with drought conditions, especially in parts of Nebraska and South Dakota. South Dakota corn yield potential was estimated at 118.6 bushels per acre, well below the three-year average of 161.8 bushels.

🔹 Chicago 🇺🇸 grains futures extended gains today, with corn reaching its highest in nearly two months. Indiana corn 🌽 yield prospects are lower than last year and below the three-year average.

🔹Indonesia 🇮🇩 has the potential to export 🚢 corn on account of a production surplus reaching three million tons.

🔹The outlook for cotton production in Texas, 🇺🇸 the nation’s largest producer, took a turn for the worse . Only 11% of Texas crops were rated good-to-excellent in the week to Aug. 21, down from 14% a week earlier, matching the lowest since 2011.

🔹USDA 🇺🇸 projected Arkansas' state average yield to be the second highest on record at 1,195 pounds per acre. “Those who started irrigation on time have a good crop. Those who started late cut their effective bloom 🌱 period short with an early cutout. This will impact our yield average,” he said.

🔹India 🇮🇳 is responsible for over 40% percent of the world's total production of cotton, and is now India is dealing with flash floods 🌧 as well as a pest infestation that has caused severe damage to crops. India had to resort to importing supplies.

🔹Since late 2020, the US 🇺🇸 has been experiencing unusually hot and dry ☀️weather. The extreme circumstances have spurred demand for water and cooling, leaving reservoirs emptier than usual. While it has risen this high before, it rarely stayed there for so long. During the drought of 2018, it exceeded the threshold for only five weeks.

🔹Whiting, Vermont 🇺🇸- Beef cattle 🐂 pasture not growing back due to drought. Cattle feed quality and volume are both down about 50% from a normal year. Their corn crop is also taking a hit.

🔹At the Colorado River Basin, the Gila River Indian Community is protecting their own water resources. The tribe—located just south of Phoenix—would stop voluntarily contributing water 💧 to an important state reservoir.

Recently:
💠Arizona and Nevada 🇺🇸 face deeper cuts on the amount of water they can draw from the Colorado River.

💠The water levels in Lake Mead & Lake Powell are at their lowest ever, affecting 💡hydroelectric power stations.

🔹India 🇮🇳 cuts U.S. crude imports by 50% as it buys Urals crude from Russia 🇷🇺 which have been offered at record discounts.

🔹U.S. 🇺🇸crude oil inventories, excluding those in the SPR, were at only 425 million barrels, or 6% below the five year average. The SPR is expected to shrink to a 40-year low by the end of October, with inventories then at 358 million barrels, 🛢 compared to 621 million barrels a year ago.

🔹Iran 🇮🇷 Nuke Deal possibility - Iran’s state oil producer will try to win back customers in Europe, in the event sanctions against Iran is lifted. The idea of a production cut appears to be gaining momentum in Azerbaijan, Libya, Algeria, and Congo.

🔹Saudi Arabia 🇸🇦 suggested that OPEC+ could look at making production adjustments due to the disconnect between the physical and paper 🛢 crude markets.