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
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
Global Economics Update Further thoughts on the impact of China’s exchange rate shift China’s move to shore up the renminbi suggests that the exchange rate policy changes it announced earlier this week will have little lasting impact on the world economy. Nor will the small step... 13th 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
Middle East & North Africa Economics Update UAE’s planned sales tax a positive step Reports that the UAE is planning to introduce a sales tax, coming soon after some fuel prices were deregulated, add to the impression that it is taking fiscal consolidation more seriously than the... 13th August 2015 · 1 min read
Metals Chart Pack Investor sentiment plumbs new lows The S&P GSCI industrial metals index has now fallen by nearly 10% since the end of the second quarter. A deterioration in investor sentiment weighed on prices throughout most of July, while the... 13th August 2015 · 1 min read
Energy Data Response US Weekly Petroleum Status Report US oil stocks have now fallen for the third consecutive week as demand remains very strong and oil production shows signs of falling back a little. 12th 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
OPEC Watch OPEC keeps the pumps on full blast Last month’s increase in supply from OPEC adds to the glut of oil already in the market and underlines the cartel’s commitment not to cut output just to support prices in the short term. 11th 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
Metals Data Response US silver imports and exports (May) US silver imports fell in May after a strong April, but exports of semi-manufactured silver surged, suggesting recovering industrial demand from the rest of the world. Meanwhile, retail appetite for... 11th August 2015 · 1 min read
China Economics Update Imports hint at policy-driven pick-up in demand Yesterday's inflation data suggest domestic price pressures remained broadly stablelast month. Meanwhile, although exports were subdued, policy easing appears to have supported commodity import... 10th 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
