Commodities prices fell across the board as some USD strength and some hawkish Fed comments weighed on risk assets, according to the analysts at ANZ.
Key Quotes
“Oil prices weakened and the recent rout turned into a bear market as persistent concerns over the supply of oil weighed on prices. A 1.9% fall saw WTI crude oil slide to its lowest level in 10 months. The fall came despite a fall in the crude inventories of 2.72m barrels. Other energy prices closed lower, with Brent crude, gasoline and heating oil all falling more than 2%.”
“Base metals closed flat to lower, with aluminium prices down marginally and copper falling 1%. Copper fell the most in six weeks on the USD strength and concerns that China is reducing demand. This is the fifth consecutive monthly decline for copper prices.”
“Precious metals were broadly lower, though the prices declines were modest. Gold fell USD2oz or 0.1%. USD strength and Fed comments weighed on the yellow metal.”
“Agricultural commodities softened as well, with corn, soybeans and coffee lower on larger stockpiles, although wheat prices flattened and sugar rose 0.7%.”
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