Igors Aleksejevs
The estimated value of open interest across global commodity markets surged by 6% over the week to about $71 billion, to a six-month high of $1.33 trillion, driven by a significant increase in price and contract flows across crude oil and base metals, J.P. Morgan Commodities Research said.
As of March 15, inflows calculated across all trader types, persisted across global commodity markets for a consecutive week, reaching a seven-month high of $43 billion week-on-week, the Bank said in a note dated March 19.
Inflows in crude oil amounted to $14 billion, the highest since September 2023, while in base metals market, it reached $15.6 billion, supported by stronger-than-expected Chinese activity in January and February, which was led by industrial production, manufacturing, and strong exports.
Repeated drone attacks by Ukraine on Russian oil facilities helped push oil prices to multi-month highs. However, prices have retreated on the back of a stronger dollar, as markets eagerly await the Federal Reserve’s interest rate decision and a subsequent press conference by Chair Jerome Powell. On the day, Brent crude (CO1:COM) eased -0.72% to $86.75/bbl, and WTI (CL1:COM) fell 0.74% to $82.12/bbl.
Among metals, the estimated value of open interest across base metals markets spiraled upward by 13.4% week-over-week primarily driven by copper. Copper prices rallied last week, with Shanghai copper prices hitting a record high and prices in London reaching an 11-month peak.
Potentially relevant stocks: Freeport-McMoRan (FCX), Southern Copper (SCCO), Teck Resources (TECK), Ero Copper (ERO), BHP (BHP), Rio Tinto (RIO), Glencore (OTCPK:GLCNF) (OTCPK:GLNCY) and Anglo American (OTCQX:AAUKF) (OTCQX:NGLOY).
However, prices of most metals are trading lower today, with Gold (XAUUSD:CUR) -0.14% to $2,154.17 and Silver (XAGUSD:CUR) -0.38% to $24.823/t.oz.
Recent Commodity Price Movements and A look At Some ETFs
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Energy
Metals
Agriculture
Commodity ETFs
Gold ETFs:
Other Metal ETFs:
Oil ETFs:
Agriculture ETFs:
