Apr 25, 2018 – Commodity Weekly: Energy and metals driven commodity rally seems to lose momentum
Commodity markets were driven last week by energy sector and industrial metals due to US sanctions on Russian interest (especially aluminium and nickel prices were pushed higher). However beginning of the week we could see weakening oil bulls and an intensive correction in some metals due to easing pressure from US on Mr. Deripaska’s Rusal, the second biggest aluminium producer of the world. Sugar weakness continued after Indian government allowed to export 2 mil. tons of sugar. It is still not clear when will this extra supply really get to the global markets as the global prices are even lower than the domestic prices and Indian sugar mills are waiting for subsidies in order to start exporting sugar. Corn planting is behind schedule but it seems that hedge funds were a little over positioned and the price action also seems to signal hesitation. If the weather will improve as forecasted, farmers will still have a lot of time to plant their crops so don’t get overoptimistic with an only 3% progress in planting.
Good Luck and remember to watch your risk and be consistent
Mr. Tech Man
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