While Crude corrected ahead of key resistance on easing ME tension, grain traders were surprised by the USDA corn and soybeans ending stocks (higher than estimates) and acreage estimates (surprisingly balanced). Sugar is on the other hand pressured by strong production in India despite Brazilian producers are shifting to ethanol and its a surprise its holding so well despite the
Crude oil testing January highs as well as the revival of gold rally after the FOMC were supporting commodities last week. As energy sector and precious metals pulled the market to the upside, the agricultural contracts and industrial metals were suffering losses from rising fears that the escalating trade war could hamper global growth. Oil While speculative net long reached
A great week for traders is behind, the volatility finally arrived to the commodity markets and more sectors had nice moves during this period. The biggest movers were in the Energy sector were oil and distillates joined the falling natural gas as the updated 2018/19 predictions of increasing US production surprised the markets. The Agri sector had on the other
After a supportive week of depreciating dollar commodities are getting hit by sell off in equities and overall negative sentiment in risk assets. While the dollar should have been helping commodities rise, it wasn’t entirely the case even last week and the air was filled with tension especially after the FOMC meeting on Wednesday where the Fed noted inflation is
Last week continued the spectacular oil rally as inventories are dropping and Trump threatened to abandon Iran nuclear deal. The grains had hard time after bearish WASDE report although soybeans seem to get some extra boost, both corn and wheat were suffering. The soft sector had a rather bad week too with Sugar #11 dropping almost 7% testing key support
The second week of the year is usually about Commodity Index rebalancing. During this process Commodity Index funds adjust their portfolios to those indices they follow. This often results in buying the worse performing commodities and selling the high performers. Some commodities may see a short term bounce or drop but without fundamental support any correction will be short lived Oil
2017 was very good year for the metals, especially industrial metals were in favour of investors after the EV euphoria spread all over the market place. Crude had also a good year, lathough the main rally came on the second half of the year. The agricultural sector was hot hard by another strong harvest season. The coming year is promising for
The last week was pretty bad for commodities in general as we experienced sell off all over the commodity market place. The most where sold out metals and softs, but energy sector was also hit. Main drivers were strengthening dollar, the changes in Chinese industry goin more green and also the rise of bitcoin as a possible substitute of gold
Commodities had a bad week caused primarily by correction in metals which couldn’t be compensated by slight bounce in Energy and Agriculture. The OPEC delivered extension of the production cut as the market expected, however as this was already priced in there wasn’t enough buying power to take prices to new highs. As the huge rally from the end of
The last week was rather quiet due to Thanksgiving but we had some interesting moves in the commodity space due to unexpected events. First of all the tired oil bulls got some support from the Canadian supply disruption while the grain market was kept low due to huge ending stocks and good weather forecast from South America. We saw also