Precious Metals: Palladium soared on softer greenback
Precious metals rose on Monday amid positive news from Spain. The EU Commissioner Rehn stated that Spain has to continue austerity measures and the country’s 2012 deficit target is feasible. Mixed news from the US and broadly weaker US Dollar also lifted the commodity group.
Gold climbed after dismal US construction spending numbers sent the greenback lower. Positive data from the single currency union also supported the yellow metal.
Silver soared, drawing strength from strong global equities and soft US Dollar. However, disappointing manufacturing data from China capped gains of the white metal.
Platinum jumped as tensions between South African miners, mining companies and the government escalated. On Monday, Anglo American Platinum threatened that it would fire miners who did not attend disciplinary hearings.
Palladium was the top-gainer despite weak manufacturing data releases from Asia. Rising optimism over eurozone sent the precious metal higher.
Industrial Metals: Zinc rose despite elevated inventories at LME
Industrial metals jumped on Monday on positive manufacturing data from the US. US ISM purchasing managers index climbed to 51.5 in September compared to 49.6 in August. A reading above 50 indicates expansion. However, persistent weakness of China’s manufacturing activity capped the upswing.
Aluminum added 0.66% on hopes that recent move of the POBC will ease liquidity conditions and stimulate demand from the world top-producer.
Copper surged despite elevated inventories at China’s warehouses. Inventories at Shanghai warehouses rose by 6.67% over the week.
Nickel was the top-gainer amid better spot market activity. Adding to gains of the commodity, Xstrata closed down its Cosmos Nickel mine, citing rising production costs and soft metal prices.
Zinc inched up as high inventory levels at the LME-monitored warehouses continued to weight down on the metal.
Energy: Heating oil sank ahead of the US inventory report
Energy commodities were mixed on Monday, balancing between encouraging news from Spain and dismal manufacturing data releases from Asia. The HSBC China Manufacturing purchasing managers index attained 47.9 last month compared to 47.6 in August. The level below 50 indicates contraction.
Crude oil ended Monday’s session slightly higher amid optimism over Spain after the country announced that it needs EUR59.3 billion to recapitalize its banks. The figure is in compliance with expectations.
Brent oil inched down despite supply-side support. Tensions between Iran and Israel escalated on speculation that Iran may be able to build nuclear weapon by 2013.
Natural gas surged almost to 10-month high as cooler-than-normal weather forecasts in the US in the first half of October boosted demand prospects.
Heating oil was the top-loser ahead of the US inventory data due on Wednesday. Broadly weaker US Dollar limited the downswing of the commodity.
Agriculture: Coffee soared on Brazilian crop concerns
Agricultural commodities apart from wheat gained on Monday amid softer greenback and optimism over eurozone. However, improved weather conditions in the world top-growing regions weighted down on the rural commodities.
Wheat plunged the most in two weeks as rains in the US improved crop conditions for the winter varieties. Kansas, US top-growing regions of winter varieties, got four times higher-than-normal amount of rain last week.
Corn edged up despite brighter supply prospects. Dry weather in the US accelerated harvesting; about 54% of corn was gathered by the end of last week compared to 39% a week earlier.
Sugar was the top-performer despite potential increase in global supplies. USDA reported that Australian sugar production is expected to rise to 4.3 million MT in the year starting July 1 compared to an output of 3.9 million MT this year.
Coffee advanced on Brazilian harvest concerns as dry weather hampers development of crops.
Gold - spot 995 fine gold
Silver - spot 999 fine silver
Platinum - spot platinum with minimum purity 99.95%
Palladium - spot palladium with minimum purity 99.95%
Aluminium - three-month forward contract on the London Metal Exchange
Copper - three-month forward contract on the London Metal Exchange
Zinc - three-month forward contract on the London Metal Exchange
Nickel - three-month forward contract on the London Metal Exchange
Crude oil - light, sweet crude oil active contract on the New York Mercantile Exchange
Brent oil - Brent oil active contract on the New York Mercantile Exchange
Natural Gas - natural gas active contract on the New York Mercantile Exchange
Heating oil - heating oil active contract on the New York Mercantile Exchange
Sugar - white sugar wheat active contract on the Chicago Board of Trade
Wheat - wheat active contract on the Chicago Board of Trade
Coffee - benchmark Arabica coffee active contract on the NYB-ICE Futures Exchange
Corn - corn active contract on the Chicago Board of Trade
Dow Jones-UBS Precious Metals Subindex Total Return - commodity group subindex composed of gold and silver; the index reflects return on underlying commodity futures price movement
Dow Jones-UBS Industry Metals Subindex Total Return - commodity group subindex composed of futures contracts on aluminium, copper, nickel and zinc; the index reflects return on fully collateralized futures positions
Dow Jones-UBS Energy Subindex Total Return - commodity group subindex composed of futures contracts on crude oil, heating oil, unleaded gasoline and natural gas; the index reflects return on fully collateralized futures positions
Dow Jones-UBS Agriculture Subindex Total Return - commodity group subindex composed of futures contracts on coffee, corn, cotton, soybeans, soybean oil, sugar and wheat; the index reflects return on fully collateralized futures positions
SMA (20) - Simple Moving Average of 20 periods
SMA (60) - Simple Moving Average of 60 periods
Correlation - a statistical measure of the linear relationship of two random variables. It is defined as the covariance divided by the standard deviation of two variables
Daily Ranked Price Moves - daily price changes in an ascending order for positive changes and in a descending order for negative or mixed changes
Monthly Ranked Price Moves - monthly price changes in an ascending order for positive changes and in a descending order for negative or mixed changes