Commodities Update 45

Commodities Update 45

den 16 juni 2016

Important legal information

At the beginning of the week, Brent slipped below USD 50 and WTI approached USD 48. Growing risk aversion among investors and concerns the UK may exit the European union are the two main drivers for falling oil prices. According to Baker Hughes, a 50 USD oil price made production economically viable for some producers in the USA. Among other thingsa the oil drilling activity in the USA went up last week by 3 to 238.However, the growing oil production could have a negative impact on oil prices in the future.

Gold got support from a possible Brexit. Gold jumped to a 4 week high to USD 1285 per ounce and even to a 3 month high in euro at EUR 1140 per ounce, also driven by May’s disappointing US jobs report. The actual pessimism in the stock market helped the major gold ETF’s to get high inflows. According to Saxo’s bank analysts, the yellow metal could soars to a year high in the upcoming months. However, the future development remains to be seen.

Because of severe drought in Ivory Coast and Ghana, the upcoming cocoa harvest is jeopardized. These two west African countries account together for more than half of the worldwide cocoa production. Ivory coast is especially touched by the drought, which led the COFFEE-COCOA board to lower their forecast for the Ivorian 2015/2016 harvest. According to ICCO’s (International Cocoa Organization) forecast, the upcoming harvest could barely yield over 4 million tonnes, a 4,6 percent drop compared to last year’s production.

 

 

2019-07-19 15:10:39