Commodities Update The price of US lumber set for strong recovery The price of US lumber has continued to fall since early June. But with single family unit starts andindustry confidence strengthening, we think that the price of lumber will end the year higher. 25th August 2015 · 1 min read
Commodities Weekly China panic spreads The negative sentiment prompted by the slide in the renminbi has been compounded by further weakness in Chinese equities and another soft reading of the country’s manufacturing PMI. What’s more... 21st August 2015 · 1 min read
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
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
Commodities Weekly China’s “devaluation” lifts precious metals prices The People’s Bank of China surprised markets on Tuesday by lowering the reference rate that determines the mid-point of the renminbi’s trading band against the US dollar. Although the bank explained... 14th 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
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
Commodities Update Corn prices to fall, despite lower EU harvest Despite a large downgrade to the outlook for the EU’s 2015 corn harvest, global supplies and stocks are likely to remain high. As such, we think the price of corn will fall further this year. 7th August 2015 · 1 min read
Commodities Update Weak demand to push soybean prices lower The continued fall in China’s pig herd is likely to undermine soybean demand growth over the second half of the year. Coupled with ample supplies, we think soybean prices will end the year lower. 6th August 2015 · 1 min read
Commodities Update Investor sentiment wanes Surging prices of a number of agricultural commodities from mid June to early July saw investors increase the number of net long non-commercial positions. However, recent improvements in the prospects... 6th August 2015 · 1 min read
China Economics Update Pork prices boost headline inflation Consumer price inflation is likely to have risen to an 11-month high in July on the back of surging pork prices. Volatility in food inflation aside, the bigger picture is that inflation is set to edge... 5th August 2015 · 1 min read
Commodities Update Plenty of upside for the price of lumber The price of US lumber fell almost 30% between the start of the year and mid-May, weighed down by a poor start to the year for US housing starts. After a brief rally in June, the price has slumped... 31st July 2015 · 1 min read
Commodities Update Weak demand will push palm oil prices lower With huge soybean supplies likely to push down the price of soy oil, we expect demand for palm oil to remain weak. Combined with high stocks, we think the price of palm oil will fall further this year... 30th July 2015 · 1 min read
