Tamil Nadu's textile hubs caught unawares, pray for tariff reversal
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2 hours ago
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Cocoa Prices Sharply Lower on the Outlook for Adequate Supplies
September ICE NY cocoa (CCU25) on Friday closed down -274 (-3.22%), and September ICE London cocoa #7 (CAU25) closed down -165 (-2.92%). Cocoa prices settled sharply lower Friday as supply concerns eased on speculation that cocoa will be exempt from President Trump's tariffs. US Commerce Secretary Lutnick noted earlier this week that goods not produced in the US could be exempted from tariffs. More News from Barchart Brazil Tariff Risks Underpin Arabica Coffee Prices Arabica Coffee Rises as Tariff Risks Remain Cocoa Prices Settle Sharply Higher on Supply Woes Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Earlier this week, cocoa prices rallied to 1-month highs on concern that the slowdown in the pace of Ivory Coast cocoa exports could tighten global supplies. Monday's government data showed that Ivory Coast farmers shipped 1.75 MMT of cocoa to ports this marketing year from October 1 to July 27, up +6.1% from last year but down from the much larger +35% increase seen in December. Concerns about dry weather in West Africa are also bullish for cocoa prices. According to the European Centre for Medium-Range Weather Forecasts, rainfall in the Ivory Coast and Ghana this season remains below the 30-year average, and combined with high temperatures, risks hurting cocoa pod development for the main crop harvest that starts in October. Concerns over tepid chocolate demand are bearish for cocoa prices. Last Tuesday, chocolate maker Lindt & Spruengli AG lowered its margin guidance for the year due to a larger-than-expected decline in first-half chocolate sales. Also, chocolate maker Barry Callebaut AG reduced its sales volume guidance earlier this month for a second time in three months, citing persistently high cocoa prices. The company projects a decline in full-year sales volume and reported a -9.5% drop in its sales volume for the March-May period, the largest quarterly decline in a decade. Cocoa prices sold off last month, with NY cocoa sinking to an 8.5-month nearest-futures low and London cocoa slumping to a 17-month nearest-futures low. Weakness in global cocoa demand has hammered prices. The European Cocoa Association reported on July 17 that Q2 European cocoa grindings fell by -7.2% y/y to 331,762 MT, a bigger decline than expectations of -5% y/y. Also, the Cocoa Association of Asia reported that Q2 Asian cocoa grindings fell -16.3% y/y to 176,644 MT, the smallest amount for a Q2 in 8 years. North American Q2 cocoa grindings fell -2.8% y/y to 101,865 MT, which was a smaller decline than the declines seen in Asia and Europe. In a bearish development, ICE-monitored cocoa inventories held in US ports reached a 10.5-month high of 2,368,141 bags last Tuesday. Higher cocoa production by Ghana is bearish for cocoa prices. On July 1, the Ghana Cocoa Board projected the 2025/26 Ghana cocoa crop would increase by +8.3% y/y to 650,000 from 600,000 MT in 2024/25. Ghana is the world's second-largest cocoa producer. Cocoa prices have support from quality concerns regarding the Ivory Coast's mid-crop cocoa, which is currently being harvested through September. Cocoa processors are complaining about the quality of the crop and have rejected truckloads of Ivory Coast cocoa beans. Processors reported that about 5% to 6% of the mid-crop cocoa in each truckload is of poor quality, compared with 1% during the main crop. According to Rabobank, the poor quality of the Ivory Coast's mid-crop is partly attributed to late-arriving rain in the region, which limited crop growth. The mid-crop is the smaller of the two annual cocoa harvests, which typically starts in April. The average estimate for this year's Ivory Coast mid-crop is 400,000 MT, down -9% from last year's 440,000 MT. On May 30, the International Cocoa Organization (ICCO) revised its 2023/24 global cocoa deficit to -494,000 MT from a February estimate of -441,000 MT, the largest deficit in over 60 years. ICCO said 2023/24 cocoa production fell by 13.1% y/y to 4.380 MMT. ICCO stated that the 2023/24 global cocoa stocks-to-grindings ratio declined to a 46-year low of 27.0%. Looking ahead to 2024/25, ICCO on February 28 forecasted a global cocoa surplus of 142,000 MT for 2024/25, the first surplus in four years. ICCO also projected that 2024/25 global cocoa production will rise +7.8% y/y to 4.84 MMT. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
3 hours ago
- Yahoo
Smurfit Westrock reports $7.94bn net sales in Q2 2025
Paper-based packaging solutions provider Smurfit Westrock has reported its performance results for the second quarter (Q2) ending 30 June 2025. The company's net sales reached $7.94bn in Q2 2025, representing a substantial rise of 167.5% from $2.96bn in Q2 2024. However, the company experienced a net loss of $26m in Q2 2025, a decline from a net income of $132m in Q2 2024, resulting in a negative shift in net income margin from 4.4% in 2024 to 0.3% in 2025. Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) saw a significant increase of 152.7%, reaching $1.21bn in Q2 2025 from $480m in Q2 2024, although the adjusted EBITDA margin slightly decreased from 16.2% in 2024 to 15.3% in 2025. Additionally, net cash provided by operating activities rose 144.1% to $829m in Q2 2025 from $340m in Q2 2024. Adjusted free cash flow improved to $387m in Q2 2025, compared to $189m in 2024, reflecting a growth of 104.8%. Smurfit Westrock president and CEO Tony Smurfit said: 'I am pleased to report a strong second-quarter performance as we continue to deliver in line with our adjusted EBITDA guidance. 'This performance is driven by the significant improvement in our North American business and continued excellent results from our Latin American operations, somewhat offset by a resilient performance from our EMEA [Europe, the Middle East and Africa] and APAC [Asia-Pacific] businesses.' For the six months ended 30 June 2025 (H1), the company's net sales reached $15.59bn, indicating an increase of about 164% from $5.89bn in 2024. Smurfit Westrock has reported a net income of $356m for the first six months of 2025, reflecting an increase of approximately 10.2% from $323m reported in the same period last year. In addition, the company announced that its board has approved a quarterly dividend of $0.43 per ordinary share. In March 2025, Smurfit Westrock reported an increase in net sales for Q1 2025, totalling $7.66bn, compared to $2.93bn in the same period last year. "Smurfit Westrock reports $7.94bn net sales in Q2 2025" was originally created and published by Packaging Gateway, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
4 hours ago
Ontario, Michigan business groups jointly warn of 'crisis' if Canada, U.S. can't reach trade deal
Two groups representing businesses in Ontario and Michigan are urging Canada and the U.S. to get a trade deal done in order to avoid prolonged instability. Prolonged instability could have serious consequences for key sectors, from automotive and advanced manufacturing to agriculture and logistics, a joint statement Friday from the Ontario and Michigan chambers of commerce said. This is not just a trade story, it's a North American competitiveness crisis. The chambers are calling on both governments to return to the negotiating table. The statement comes after the two countries failed to come to some sort of agreement by an Aug. 1 deadline. U.S. President Donald Trump signed an executive order on Thursday boosting tariffs from 25 per cent to 35 per cent on Canadian goods that don't comply with the Canada-U.S.-Mexico Agreement (CUSMA). Michigan and Ontario form one of the largest trade corridors between the two countries. The two jurisdictions are largely connected via the integrated auto sector. In addition to the 35 per cent tariffs on non-CUSMA compliant goods, Trump has also slapped a 25 per cent levy on the non-U.S. portion of assembled vehicles. The U.S. has also imposed 50 per cent tariffs on steel and aluminum imports from all countries. Enlarge image (new window) Tracking the trade war between the U.S. and Canada. Photo: CBC / Wendy Martinez, Graeme Bruce Prime Minister Mark Carney released a statement just past midnight on Friday saying Canada will continue to work toward a deal while focusing on providing supports for impacted industry and diversifying trade. Canada will be our own best customer, creating well-paying careers at home, as we strengthen and diversify our trading partnerships, the statement said. Trump's order cites Canada's lack of co-operation in stemming the flood of fentanyl and other illicit drugs across our northern border — even though Canada accounts for a small percentage of drug seizures entering the U.S. But a White House official gave CBC News a different explanation for the lack of an agreement with Canada, saying on background that Canada has repeatedly demonstrated a lack of seriousness in trade discussions as it relates to removing trade barriers. Trump gave Mexico, which accounts for the majority of drug seizures at the U.S. border, a 90-day extension of its current tariff regime with the goal of signing a new deal during that period. 'No deal better than a bad deal' Other Canadian business groups also expressed concerns about the lack of an agreement, but say it's better that Canada take its time rather than accept a bad deal. The Canadian Chamber of Commerce says it feels spending a little bit more time on crafting the right deal is well worth the wait because it will deliver lasting benefits. However, the group also feels businesses in Canada and the U.S. urgently need more certainty. Dan Kelly, the president and CEO of the Canadian Federation of Independent Business (CFIB), blasted the U.S. administration for its tariff rationale. The hike in U.S. tariffs to 35 per cent will harm small businesses on both sides of the border. The fentanyl rationale is even more ridiculous than the decision itself, Kelly said in a statement. CFIB supports the view that no deal is better than a bad deal, but the lack of resolution means small firms will not be able to plan for the future or continue to put off difficult choices. WATCH | Scarcity of goods will force a trade deal by September, O'Toole says: Kelly's sentiment was echoed by the United Steelworkers union on Friday. While we're disappointed an agreement wasn't reached to end this trade war, the worst outcome would have been a deal that locked in permanent damage to our economy, national director Marty Warren said in a statement. Warren encouraged Ottawa to take retaliatory action if necessary. This fight is far from over. The federal government must remain steadfast to secure the right deal for the Canadian economy and Canadian workers and must not accept anything less. Premiers urge Ottawa to stand its ground Ontario Premier Doug Ford called the tariff increase concerning and said Ottawa should retaliate with 50 per cent tariffs on U.S. steel and aluminum. Canada shouldn't settle for anything less than the right deal, Ford said on X Thursday night. Now is not the time to roll over. We need to stand our ground. Quebec Premier François Legault called Trump's latest move disappointing and argued that it will hurt Americans. Recent events highlight the importance we must place on diversifying our markets and increasing our economic autonomy, Legault wrote on X in French. We are in contact with the federal government and other provinces regarding the next steps. Discussions with the American administration must continue. In any case, we will defend the interests of Quebecers. New Brunswick Premier Susan Holt said Canada should still push for a good deal. Canada has what the world wants, and we should not settle for anything less than the best deal for New Brunswickers, she wrote Friday on X. Canada is coming together like never before to support our local businesses, workers and build a strong and resilient economy. We have your back. Darren Major (new window) · CBC News · Senior writer Darren Major is a senior writer for CBC's parliamentary bureau in Ottawa. He previously worked as a digital reporter for CBC Ottawa and a producer for CBC's Power & Politics. He holds a master's degree in journalism and a bachelor's degree in public affairs and policy management, both from Carleton University. He also holds master's degree in arts from Queen's University. He can be reached at With files from Katie Simpson and The Canadian Press
