Peru Mining Ban Cuts Gold Output by 20%; French Power Prices Plunge Below Zero
Key Takeaways
- Peru mining ban to cut gold output by 20%, costing $200 million.
- French day-ahead power prices tumble below zero amid solar generation surge.
- Indonesia to halt rice imports after 53% production jump.
- Coinbase rejected Saylor's Bitcoin buying strategy as too risky.
- Hedge funds reduce bullish Brent crude oil positions to a six-month low.
Top Stories
Peru mining ban to cut gold output by 20%
On May 9, 2025, Peru's central bank projected that a mining ban in the northern region would lead to a loss of approximately 60,000 ounces of gold production, valued at around $200 million, over the next 30 days, representing about 20% of the country's total February output; this ban is in response to increased criminal activity, including the murder of 13 mine workers.
French day-ahead power prices tumble below zero
On May 9, 2025, it was reported that French day-ahead power tumbled below zero for the first time since July last year, as solar generation this weekend (May 10, 2025) is set to overwhelm the grid; the daily average settled at €-1.05 a megawatt-hour in an auction on the Epex Spot SE exchange in Paris.
Indonesia to halt rice imports after 53% production jump
On May 9, 2025, it was reported that Indonesia produced 8.61 million tons of rice in the first quarter of 2025, a 53% jump from the same period last year, due to favorable weather; consequently, Indonesia is set to stop importing rice this year for the first time in decades.
Coinbase rejected Saylor's Bitcoin buying strategy as too risky
On May 9, 2025, Coinbase Global Inc. decided against implementing Michael Saylor’s Bitcoin buying strategy, deeming it too risky, even though CEO Brian Armstrong mentioned that Coinbase considered allocating 80% of its balance sheet to Bitcoin at one point.
Hedge funds reduce bullish Brent crude oil positions
On May 9, 2025, Bloomberg reported that hedge funds decreased their bullish positions on Brent crude oil following OPEC+'s agreement to a second major production increase; money managers reduced their net-long position on Brent by 12,383 lots to 97,558 lots in the week ending May 6, the lowest in about six months, and short-only bets against West Texas Intermediate also increased.
Commodity Corner
China increases wheat imports from Canada, Australia
On May 9, 2025, reports indicated that China is increasing its wheat purchases from Canada and Australia due to heat-related impacts on its own crop.
China cracks down on strategic mineral smuggling
On May 9, 2025, China's Ministry of Commerce announced a crackdown on the smuggling of strategic minerals by mandating officials to tighten checks in line with increased export controls.
Guinea to withdraw mining permits from non-compliant firms
On May 9, 2025, Guinea’s transitional President General Mamadi Doumbouya instructed his government to withdraw permits and concessions from mining companies that don’t respect their legal commitments to the country.
US oil and gas rig count hits lowest since January
On May 9, 2025, Baker Hughes reported that the US oil and gas rig count fell to its lowest level since January.
Brazilian pulp exports to US decline due to levies
On May 8, 2025, Bloomberg reported that Suzano SA, the world’s largest exporter of pulp, has seen that export levies have led to a decline in shipments of pulp from Brazil to the US; the company is now passing tariff costs on to US buyers.
UK ethanol sector threatened by US trade deal
On May 9, 2025, the National Alcohol Producers Association warned that a UK trade deal with US President Donald Trump will have "disastrous" consequences for Britain’s ethanol sector due to the removal of tariffs on ethanol.
Gold Insights
Luxury watch brands face challenges from soaring gold prices
Reported on May 8, 2025, luxury watch brands are facing challenges due to soaring gold prices, which have increased by 40 per cent, from about $2,300 an ounce a year ago to around $3,300 an ounce.
Global Finance
India prepared to use reserves for currency stability
On May 9, 2025, it was reported that India’s central bank is prepared to utilize foreign reserves to maintain currency stability amidst rising tensions with Pakistan.