Commodities Update Strong fundamentals will ultimately support palladium prices Palladium prices rose strongly for much of 2014 as rising concerns about supply attracted investor interest. In the last month, however, investors have been selling. In our view, solid demand growth... 26th September 2014 · 1 min read
Commodities Update Sugar prices to remain less than sweet Like many agricultural commodities, sugar has seen a price rout as earlier concerns over supply have evaporated. Despite the benchmark ISA sugar price being nearly 18% below its 2014 mid-May peak, we... 26th September 2014 · 1 min read
Commodities Update Focus on carbon emissions to weigh on coal and oil prices This weekend’s protests about climate change and yesterday’s UN summit are just the latest signs that the issue of climate change is being taken more seriously again. Whilst any sort of meaningful... 24th September 2014 · 1 min read
Commodities Update What next for platinum prices? Disappointing growth in demand at a time of high stocks is weighing on the price of platinum. Weexpect lower prices to encourage some buying, notably of jewellery, but a sustained recovery is... 24th September 2014 · 1 min read
Commodities Update How to interpret the weakness in commodity prices The recent slide in the Bloomberg index of spot commodity prices to its lowest level since 2010 has caught the attention of many commentators. But the underlying picture is far more nuanced than the... 23rd September 2014 · 1 min read
Commodities Update Commodities demand unlikely to get a boost anytime soon The increase in the flash PMI for China has helped to assuage fears about a hard landing. However, the index is still low by historical standards and the fall in the euro-zone’s flash PMI highlights... 23rd September 2014 · 1 min read
Commodities Update Can Indonesia dictate global tin prices? Indonesia appears to be exercising its power as the world’s largest tin exporter, withholding shipments when prices are low. However, with only subdued growth in demand, there is a risk that other... 19th September 2014 · 1 min read
Commodities Update Zinc losing its zing? Zinc prices have started to fall in recent weeks. Whilst acknowledging that the market was set to tighten in 2015, we had felt the recent rally was premature. However, the scale of mine closures... 18th September 2014 · 1 min read
Commodities Update Climate change not all bad news for agricultural commodities Rising global temperatures are often assumed to be unambiguously negative for the output of agricultural commodities. However, while there is plenty of debate about the causes and impacts of climate... 17th September 2014 · 1 min read
Commodities Update What would a “yes” vote mean for UK oil & gas production? The general economic uncertainty created by a “yes” vote in Scotland’s independence referendum could hamper investment in the oil and gas sector too. Nonetheless, an independent Scottish government... 16th September 2014 · 1 min read
Commodities Update Expectations for global soybean output get another boost The price of major grains and soybeans are at near five-year lows thanks in part to another large upward revision in the USDA’s expectations for global crop output. However, assuming there is no... 15th September 2014 · 1 min read
Commodities Update The dollar is not the only driver of metals’ prices Unusually, both base and precious metals prices have fallen this week. The common factor appears tobe the strength of the dollar and the prospect of imminent US monetary tightening. In our view, this... 12th September 2014 · 1 min read
Commodities Update Will global oil prices remain below $100? Some of the factors that have dragged the price of Brent crude below $100 per barrel may prove temporary, notably the weakness of European demand. Saudi Arabia might also cut output again in an... 11th September 2014 · 1 min read
Commodities Update How far can iron ore prices fall? Sluggish Chinese demand amid a ramp up in supply, notably from Australia, has sent iron ore pricesinto freefall. Higher-cost producers will eventually be forced out of the market and prices will at... 11th September 2014 · 1 min read
Commodities Update Coal prices to fall further as environmental regulations bite The recent sharp falls in imports of coal by China and consumption of coal in the US are just the latest evidence that environmental measures enacted over the last year have begun to reduce demand in... 9th September 2014 · 1 min read
Commodities Update China’s trade data confirm weaker commodity demand China’s commodity import demand weakened in August as the slowdown in the property sector continued to weigh on industrial metals consumption. While crude oil imports increased, this was matched by... 8th September 2014 · 1 min read