Vontobel Certificates


  • Symbol BEAR KAFFE X8 VON
Price on
8X Short Index linked to Coffee C® FutureUSD 
Please note that this is an indication.


Commodities Update 27

Important legal information

On Monday WTI-oil was close to its 12-year-low again, which has been reached last week, caused by the developments in the Chinese stock market. WTI lost about 1.8 percent while Brent decreased by about 1.7 percent. Investors seem to follow this trend and bet on decreasing oil prices.

According to the Commodity Futures Trading Commission (CFTC) long positions in WTI were decreasing by about 24’300 to 49’400 contracts, which is the lowest level since 2009. In contrast short positions are on a record-high.

Baker Hughes said, that active oil drillings were further decreasing by 20 to 516 active oil platforms.

Gold prices are influenced by two contradicting effects. Labor market figures in the USA been stronger than expected, on the one hand. This could build the basis for further interest hikes, which might have a negative influence on gold prices. In addition to the general uncertainty caused by China this could strengthen gold. Gold started this week nearly unchanged.

Coffee prices were still week at the beginning of the second week of 2016. Lasting oversupply of coffee since February 2015 caused a decrease of coffee prices by 30 percent during last year. The weak Brazilian Real is also pressuring prices. The oversupply in Arabica coffee has been extended by record harvests in Brazil and Columbia. Only Indonesia suffers from bad weather conditions, which might lead to a decreased coffee production of the third largest coffee producer.