In U.S. butadiene contracts for November fell on average by 18%

(ICIS) -- US butadiene (BD) contracts for November fell on average by 18% in the first single settlement for the US contract in eight months, market sources said on Monday. The reduction to $1.15/lb ($2,535/tonne, ┬1,800/tonne) marks a return to the way US BD used to settle, with the four main producers agreeing to match the lowest price nominated for the month.

The last time BD settled at a single price in the US was in March 2011, when contracts rose by 5 cents/lb to $1.04/lb FOB (free on board) USG (US Gulf).

In September 2010, a producer did not match nominations from two other suppliers, ushering in a series of split settlements for US BD contracts.

The market has since been mostly split between a group of three producers, which tends to converge to a single price, and a stand-alone fourth supplier that sets its own contract value. Prior to 2010, there were only two split BD settlements going back to 1994.


MRC

(BASF) -- BASF Plant Science applied today for EU approval for Fortuna, a genetically optimized table potato. Fortuna has a wild potato's natural protection to late blight, a disease causing severe problems in agriculture. The application for approval covers commercial cultivation as well as use as food and feed within the EU. In the next step of the approval process, the European Food Safety Authority (EFSA) will assess the safety of Fortuna for humans, animals and the environment.


BASF Plant Science started research efforts on the disease-resistant potato in 2003. Fortuna has been tested in field trials for six years and has been subjected to extensive safety assessments. Market introduction is expected for 2014/15.


⌠Fortuna provides decisive benefits for agriculture, says Peter Eckes, President of BASF Plant Science. ⌠The processing characteristics of Fortuna are as good as the parent variety. In addition, Fortuna offers complete protection from one of the world's most persistent potato diseases. By coupling Fortuna with modern plant protection measures, we are now in a position to offer a food which is produced with a highly sustainable method. Consumers ultimately stand to benefit from this too.


Fortuna represents the further development of one of Europe's leading potato varieties for the production of french-fried potatoes. The researchers at BASF Plant Science have given Fortuna complete resistance to late blight. Late blight is the most important potato disease in the world and is caused by the fungi-like pathogen Phytophthora infestans. Up to 20 percent of annual harvests the world over are lost to this disease. Farmers expend a huge amount of time and effort into fighting Phytophthora.


MRC

(Arabian oil and gas) -- ExxonMobil has announced thrid quarter earnings of $10.33 billion, an increase of 41% or $2,980 million from the third quarter of 2010. The company also confirmed capital and exploration expenditures for the period of $8.6 billion, roughly consistent with the third quarter of 2010. ExxonMobil's chairman Rex Tillerson said: ⌠ExxonMobil's results for the third quarter of 2011 reflect a continued commitment to operational integrity, disciplined investing and superior project execution.

⌠Third quarter earnings of $10.3 billion were up 41% from the third quarter of 2010, reflecting higher crude oil and natural gas realizations and improved refining margins. Earnings for the first nine months of 2011 were $31.7 billion, up 49% over the first nine months of 2010.

⌠In the third quarter, capital and exploration expenditures were $8.6 billion, and reached a record level of $26.7 billion for the first nine months of the year as we continue pursuing new opportunities to meet growing energy demand while supporting economic growth, including job creation.

⌠Oil-equivalent production decreased 4% compared to the third quarter of 2010. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was in line with 2010.

⌠The Corporation distributed over $7 billion to shareholders in the third quarter through dividends and share purchases to reduce shares outstanding.

MRC

(ICIS) -- Polyethylene (PE) demand in Europe is weak and while cutbacks are being implemented across the board most market sources see little chance of an upturn for the remainder of 2011, several said on Monday.

A series of cutbacks at the cracker and polymer level has been in place for some weeks, but some sources are now questioning whether production really was reduced enough, as supply still outstrips demand, particularly low density polyethylene (LDPE) and linear low density polyethylene (LLDPE).
Crackers are now estimated to be running at 70-80% of capacity, and more cutbacks are planned and being implemented at the PE level.

Dow has cut production at several LDPE sites throughout Europe and reduced output at solution sites. It has also taken the unexpected step of targeting a ┬100/tonne ($141/tonne) increase for November PE.

Most PE sources view this as strange, given that earlier announced hikes for October were abandoned within days of being announced, but the company says this move is being supported by heavy cutbacks.

Several producers said they were cutting back output at several sites but are not prepared to give details at present.


MRC

(ICIS) -- Asia's naphtha spot prices are likely to fall sharply this week, with crack spreads and inter-month spreads already weakening amid surplus, squeezed margins and falling prices for key petrochemical products, traders said on Monday.

Continued deceleration in China, the world's second biggest economy, sparked worries over the plastic demand outlook for next year. In response to the bearish situation, some regional producers have begun to rein in operating rates.

⌠The market is bearish currently. The market will be weak until the end of the year. The economic policy of China, in terms of financing, will be important, said a trader in northeast Asia.
The open-spec Asian naphtha contract for the first half of December fell by $18.50/tonne (┬13.14/tonne) from Friday's close to $858.00-861.00/tonne CFR (cost and freight) on Monday midday, partly because of weaker global crude futures ahead of the G20 summit later this week, ICIS data showed.

The naphtha crack spread versus December Brent crude futures plunged to $30.38/tonne on 25 October, the weakest since 8 January 2009. The crack spread was assessed at $36.50/tonne on Friday versus $64.28/tonne on 21 October, the data showed.

The spread between the contracts for the first half of December and the first half of January weakened to a contango of $2/tonne on Friday, as compared a backwardation of $2/tonne in the week earlier.

MRC