Commodities Update Slightly sweeter times ahead for the price of sugar A mountain of sugar has been the catalyst for prices falling to a six-and-a-half year low. However, higher ethanol output in Brazil and a small world sugar deficit in 2015/16 should help to lift the... 25th June 2015 · 1 min read
Commodities Update How will China’s rebalancing affect consumption patterns? In the short to medium term, rising incomes will remain the key driver of changing dietary patterns in China, particularly for meat demand. However, a shift towards consumption-led growth and... 24th June 2015 · 1 min read
Energy Update Lifting of sanctions on Iran is a major downside risk to oil prices The likely easing of sanctions on Iran is one of several downside risks to global oil prices over the remainder of the year. Admittedly, it may not be until 2016 before Iran can meet its side of any... 24th June 2015 · 1 min read
Energy Update What does China’s rebalancing mean for energy markets? China’s efforts to rebalance its economy away from investment, manufacturing and exports towards a more consumer-led growth model are likely to have major implications for all types of energy... 23rd June 2015 · 1 min read
Commodities Update A closer look at China’s import data China’s import data continue to suggest that, in general, demand for agricultural commodities remains weak. The main exception is sugar, where imports surged on low world prices. 23rd June 2015 · 1 min read
Commodities Update China & Euro-zone Flash PMIs (Jun.) Early business survey evidence for June supports our relatively positive view on the outlook for China’s commodity demand, especially metals. The latest euro-zone data are encouraging too, although we... 23rd June 2015 · 1 min read
Precious Metals Update India’s gold demand to remain strong despite poor monsoon According to the World Gold Council (WGC), rural households in India allocate 7-8% of their annual savings to gold. Good harvests raise income levels and translate into greater gold demand. However... 22nd June 2015 · 1 min read
Commodities Update What would “Grexit” mean for commodities? A Greek default has looked increasingly likely for some time and, in isolation, may have few implications for global commodity markets. However, the risks of contagion to the rest of the euro-zone... 19th June 2015 · 1 min read
Commodities Update Weather conditions take charge of crop prices Agricultural commodity prices have had mixed fortunes since mid-May, with roughly half seeing rises and half seeing falls. While concerns about supply constraints have helped support cocoa and robusta... 19th June 2015 · 1 min read
Commodities Update Why commodity investors shouldn’t fear the Fed The US central bank is edging towards a first interest rate hike, most likely in September. Thereafter, we expect rates to rise faster than the markets (and Fed officials themselves) generally... 18th June 2015 · 1 min read
Commodities Update Commodity markets come off the boil again After a strong performance between mid-April and mid-May, all four commodity sub-indices fell over the past month. The S&P GSCI industrial metals index fell particularly sharply, largely due to... 17th June 2015 · 1 min read
Precious Metals Update What does China’s rebalancing mean for PGMs? The potential impact on precious metals demand of China’s transition to a consumption-led growth model could be substantial. We believe that palladium and platinum in particular will benefit due to... 17th June 2015 · 1 min read
Industrial Metals Update Support for iron ore prices to wane Temporary supply bottlenecks and falling stocks at Chinese ports have prompted a rally in iron ore prices since early-April. However, supply is expected to pick up strongly, at a time of only subdued... 16th June 2015 · 1 min read
Commodities Update Deterioration in Thai stocks to boost rice prices The disposal of Thailand’s remaining high-quality rice stocks should keep prices under pressure in the near-term. However, with the world market expected to tighten in 2015/16, prices should start to... 16th June 2015 · 1 min read
Industrial Metals Update Investors turn even more negative on PMs Over the past month, precious metal (PM) prices have dropped sharply. Gold has fared better than its peers, as lingering risks in Europe have cushioned the price from further losses. Both the... 16th June 2015 · 1 min read
Industrial Metals Update The impact of China’s “new normal” on metals demand The sources of industrial metals demand will alter as China shifts away from investment-led growth, but demand should not collapse. Indeed, demand for metals used in consumer goods could benefit. 12th June 2015 · 1 min read