Commodities Update Sugar prices likely to recover well before soybeans Sugar and soybean prices have followed similar paths in recent years. But while the fundamentals areturning in favour of sugar, the same factors point to further weakness for soybean prices. 20th August 2015 · 1 min read
Commodities Update Agricultural prices go into reverse After a generally positive mid-June to mid-July period, the prices of mostagricultural commodities have since gone into reverse, with many sufferingheavy falls. Indeed, six of the eleven commodities... 19th August 2015 · 1 min read
Industrial Metals Update Fears, not facts, driving copper prices lower The recent slump in copper prices has more to do with investors’ fears about China’s future copperdemand, than with the reality of Chinese copper usage. As such, we would expect a sharp rebound... 19th August 2015 · 1 min read
Energy Update Recovery in drilling activity likely to be temporary We doubt that the rise in the number of active drilling rigs in the US over the last few weeks will continue for much longer, despite improvements in efficiency. A renewed decline should weigh on US... 18th August 2015 · 1 min read
Industrial Metals Update Why hasn’t China’s new resource tax led to higher REE prices? The costs of rare earth elements (REEs) have continued to fall despite China’s new tax regime. However, we think that it is only a matter of time before higher taxes and positive demandfundamentals... 18th August 2015 · 1 min read
Industrial Metals Update Lead and zinc markets set to tighten Subdued demand in the first half of this year meant that the lead and zinc markets were in surplus. However, with supply expected to tighten and demand to strengthen, prices should pick up from here. 18th August 2015 · 1 min read
Precious Metals Update Gold price to be supported by central banks’ buying In the last month, China has added a further 19 tonnes to its official holdings of gold. This supports our view that China’s gold accumulation will continue and that official purchases will be one of... 18th August 2015 · 1 min read
Commodities Update No respite for commodities yet Commodity prices have continued their decline over the past month, with both the GSCI and Bloomberg commodity indices falling to levels last seen in mid-2009. As a result, the gulf between returns... 17th August 2015 · 1 min read
Industrial Metals Update Will the fall in aluminium prices lead to output cuts? The sharp fall in aluminium prices this year could be expected to lead to output cuts across the industry. But with China’s production less sensitive to prices, output cuts are more likely elsewhere... 14th August 2015 · 1 min read
Precious Metals Update Q2 World Gold Council Demand Trends In its latest World Demand Trends report, published today, the World Gold Council depicted a challenging time for gold in Q2. Demand was weak across all sectors but supply also fell, meaning that... 13th August 2015 · 1 min read
Commodities Update Boost to US harvests puts prices under more pressure Higher estimates by the USDA for US corn and soybean production this year (2015/16) have seen crop prices plummet. But with ample world supplies and rising stocks, we think prices can fall further. 13th August 2015 · 1 min read
Commodities Update What China’s ‘‘devaluation’’ means for commodity prices All else equal, a weaker renminbi means that US dollar-denominated commodities will be more expensive in local currency terms for Chinese buyers. However, with the renminbi unlikely to go into... 12th August 2015 · 1 min read
Commodities Update Further fall in Brazilian real could add to sugar’s woes Continued weakness in the Brazilian currency could undermine the price of sugar further. However, we think greater ethanol production and consumption in Brazil will provide some support to the price... 11th August 2015 · 1 min read
Energy Update Additional cuts in investment to help oil prices rise next year The renewed decline in oil prices has prompted another round of investment and job cuts in the sector. Slower growth in non-OPEC output should therefore support a partial recovery in prices over the... 11th August 2015 · 1 min read
Industrial Metals Update Investor sentiment shows tentative signs of improvement The prices of precious metals (PMs) have fallen sharply since mid-July as sentiment towards commodities in general plummeted. A further slump in Chinese equities and unexpectedly weak Chinese PMI... 10th August 2015 · 1 min read
Commodities Update Malaysia Monthly Palm Oil Data (Jul.) Data released earlier today by Malaysia’s Palm Oil Board show that crude palm oil production in July reached its highest monthly level since October last year. Stocks also rose sharply, adding to... 10th August 2015 · 1 min read
