Commodities Update 17

Commodities Update 17

den 21 oktober 2015

Important legal information


At the beginning of this week oil prices slid due to announced Chinese economic growth data. China’s third-quarter growth of 6.9% is the lowest figure since six years. Chinese economic growth fell below 7 percent, the first time since the financial crisis. New fiscal policy which supports economic activity could lift oil prices back up again. WTI lost 1 percent while Brent lost 1.25 percent. Iranian oil minister Namdar Zanganeh calls on OPEC to decrease their oil production in order to increase prices to 70 to 80 USD/ barrel. This might be due to the fact that Iran wants to increase their market share, after sanctions have been lifted. To achieve this, Iran has to invest in their obsolete infrastructure.

Last week, gold prices have reached a 4-months-high of 1,190 USD. At the beginning of this week, prices continued their downwards trend that started last Friday, though. New incentives could come from China. The country is buying a large amount of gold to decrease their foreign currency reserves.


Coffee prices decreased sharply at the beginning of this week. Robusta coffee lost 3.2 percent while Arabica lost 6 percent. Columbia decreased their quality requirements surprisingly, which led to an increased coffee supply. Standards were lowered as the drought caused a worse development of coffee beans than usual. The amount of coffee beans that don’t meet quality requirements increased by 8 percent. In Brazil beneficial heavy rains could lead to an increased supply of Arabica next year. This year Robusta exports already increased by 51 percent.

 

 

2020-12-04 21:12:09