From gold to wheat, gas to oil, mixed price moves seen in commodity markets
Commodity markets saw a mixed course last week; while expectations that the Fed’s interest rate hikes ending was positive for the market, continued concerns about global economic activity caused selling pressure.
Inflation concerns in the US continued to lose strength and expectations that the Fed would be able to ensure a soft landing in the economy continued to affect asset prices.
Ongoing concerns over the Chinese economy also had a negative impact on the commodity market.
Last week, gold gained 1.3%, silver 2.5%,palladium 1.6% and platinum 3.7%.
With the macroeconomic data announced worldwide revealing that the weak course in economic activity continued, a downward trend prevailed in base metals.
Copper gained 1.5%, lead 3.3%, nickel 4.8% and zinc 1%.
In the US, the manufacturing industry Purchasing Managers Index (PMI) decreased by 0.6 points monthly to 49.4 in November, below market expectations.
The index, which fell to its lowest level in three months in this period, pointed to a contraction in the manufacturing sector.
In the Eurozone, manufacturing PMI was 43.8, below the 50 level.
Expectations that the Fed would ensure a soft landing in the economy had a positive impact on copper prices.
A mixed course was observed in the energy group.
Brent oil ended the week with an increase of 0.6%, while natural gas traded on the New York Mercantile Exchange fell by 3.5%.
The American Petroleum Institute’s announcement that crude oil stocks in the country increased by 9.05 million barrels, well above the expectations of 1.5 million, approved the predictions that demand declined.
The OPEC+ group was expected to meet in the capita Vienna on Sunday to assess market conditions and review production policies; however, the meeting was first postponed to November 30, and then it was announced that it would be held online.
This led to speculation that the group was in disagreement and that some member countries aimed to increase their production.
Analysts stated that although Brent oil ended the week with an increase, demand concerns persisted.
High storage levels and mild weather conditions caused natural gas prices to fall.
Last week, there was also a mixed course in the agricultural group.
Wheat trading on the Chicago Mercantile Exchange gained 0.5% and rice 0.9%, while corn and soybeans lost 0.6% and 0.8%, respectively.
Cotton traded on the Intercontinental Exchange, the commodity exchange operating in the US, decreased by 0.8%, sugar by 0.7%, cocoa by 0.5%, while coffee rose by 0.9%.
The decline in world wheat production forecasts compared to the previous month caused an increase in prices.
Concerns that rice production would decrease in the Far East and high demand caused an increase in prices.
The low course of oil prices and the increase in production forecasts led to the depreciation of corn.
Oil prices also had a downward impact on sugar prices.
Increasing expectations of a production deficit in the coffee market led to a rise in prices.