Commodity markets that there were traded an mixed earlier this week along with supply increases hit oil prices and demand increases that lifted grains and metals regarding the Fed’s uncertainty will decide to decrease the intended economic stimulus.
The 19-commodity Thomson Reuters-Jefferies CRB index was able to finish its session down 0.44 %, was pressured by oil and metal prices. Moreover, higher gains and soft prices limited the said decline.
International oil prices declined approximately 1 % down more than $1 per barrel. Traders quoted higher crude output from Iraq, Libya and South Sudan and a possible softening in the US-Iran relations.
Prices dramatically dropped despite the upbeat economic data from Europe and China, with rudimentary figures only settling at $108.16 per barrel, down to $1.06 (0.97 %) while the US crude oil futures off $116 (1.11 %) which closed at $103.59. On the other hand, copper prices fell for a second straight session which was attributable to the weakening euro and growing concerns regarding the supply offset expectations of a possible rebound in the demand from the top consumer, China.
Despite a flood of new orders significantly aided the Chinese and European companies earlier this month, the weaker US factory was tempered by evidenced by a good indicator of a healing global economy. Furthermore, the dollar slumped for a second consecutive season while gold edged lower on renewed on reward worries suggesting that the US Federal Reserve will start cutting its bond buying purchases as early as the succeeding month. There is an uncertain timeline for the Fed to wind down its monetary stimulus having led to increased volatility in the gold market.
Gold is definitely going to see more downward pressure as the continued slowdown in the US growth should allow the Fed to ease out one of its many positions on stimulus according to a prominent precious metals dealer and commodities brokerage firm.
Spot gold was glumly down at 0.22 % at $1,322.07 per ounce this week. In Chicago, US wheat futures went up 1.1 % surprisingly due to the rising global demand and a round of short-covering. Corn futures edged higher on the spillover force from wheat, although soybeans plummeted on hopes that recent rains in the Midwest region of the US would bolster more of its final harvest yields.
among the soft commodities, coffee went up the most in nearly two weeks as investors covered short positions following last week’s slide with four consecutive year lows while rains in top grower Brazil intimidate a hampering of its harvest of an abundant harvest.