Every week, our commodities roundup gives you the opportunity to review the latest developments on the commodities markets, and to gain a better understanding of the price variations in energy, metals and agricultural commodities.
Energy: Oil continues to yo-yo as crude prices alternate between rising and falling. Last week, it was on the rise. The context remains uncertain in the Middle East, with Israel’s rejection of a ceasefire offer in Gaza and the US elimination of pro-Tehran groups in Iraq. At the same time, the US Energy Agency revised its production outlook for 2024, expecting it to peak below 13.3 million barrels per day. On the price front, Brent crude oil climbed back above the USD 80 mark, to USD 81.5, while US WTI is trading at around USD 76.70. As for natural gas, the European benchmark continues to lateralize at 27 EUR/MWh for the Rotterdam TTF.
Metals: Industrial metals ended last week in mixed order. Aluminum and tin gained ground, while copper, zinc and lead retreated. In London, a tonne of copper traded at around USD 8,200, penalized by the rise in the US dollar and increased production in Peru, the world’s second-largest producer. In precious metals, gold is treading water at USD 2015, silver is losing ground at USD 22.60 and palladium continues its decline to USD 870.
Agricultural products: Chicago remains depressed, with grain prices still on a downward trend. The latest report from the US Department of Agriculture doesn’t change the situation, on the contrary, as the USDA has revised upwards its stock forecasts for wheat and corn due to weaker domestic demand. A bushel of corn is trading at around 435 cents. Wheat is trading at around 600 cents.