Commodities: Mixed performance as fall in the EUR tempered investor appetite - ANZ
Research Team at ANZ, notes that the commodities were mixed in the previous session, as falls in the euro dollar once again tempered investor appetite.
Key Quotes
“Brent crude oil prices inched higher despite comments from Russia suggested it may increase production in 2017. However Energy Minister Alexander Novak said production could be adjusted depending on talks with OPEC. Rigs operating in the US also rose for the eighth week to 443 (+11 w/w).
Industrial metals were weaker, with nickel coming under some heavy selling. China’s largest stainless steel producer, Tsingshan Holdings said it would reduce output by 200kt after a surge in raw material prices. This equates to 11% of China’s average monthly production. Aluminium was the only metal to end the day higher; despite data showing Chinese production climbed to 2.713mt in August, the highest in almost a year.
The stronger USD saw precious metals sector remain subdued. Gold was initially sold off but regained most of the losses by the end of trading. Platinum prices were a little weaker after unions in South Africa reached a tentative wage agreement with producers, thus avoiding large scale strikes that would have closed down operations.
The agriculture prices were mixed, with cotton slumping to a seven week low, while corn and soybean closing strongly. Concerns of rising production around the globe continue to weigh on cotton prices.”
Author
Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.
