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
Commodities Update High inventories & strong US dollar to wilt wheat prices The price of US wheat has been on a rollercoaster over the past two months. However, with high global stocks and a stronger US dollar, we think prices will trend down over the remainder of the year. 29th July 2015 · 1 min read
Commodities Update Short-term supply concerns boost prices Renewed strength of the US dollar over the past month and a deterioration in sentiment towards commodities in general as an asset class, have been headwinds for commodity prices. However, short-term... 24th July 2015 · 1 min read
Commodities Update Asia Cocoa Grindings (Q2) Data on Asia’s Q2 cocoa grindings revealed a 12% y/y decline, the fourth consecutive y/y fall. This follows data released last week which showed continued weakness in North America and Europe. 24th July 2015 · 1 min read
Commodities Update Brazil Sugar Production (1st-16th Jul.) Wet weather in the first half of July meant that the amount of sugar cane harvested in Brazil fell 37% compared to the second half of June. As a result, both sugar and ethanol production dropped... 23rd July 2015 · 1 min read
Commodities Update Investor sentiment towards commodities tanks Broad-based weakness saw industrial commodity price indices slip between mid-June and mid-July. The S&P GSCI agriculture index bucked the trend, although it too has eased back recently. What’s more... 22nd July 2015 · 1 min read
Asia Economics Update Drought adds to Thailand’s economic headwinds A severe drought in Thailand is hurting its agricultural sector and adding to the country’s economic woes. Rising downside risks to growth will increase pressure on the Bank of Thailand (BoT) to... 21st July 2015 · 1 min read
Commodities Update China’s corn and wheat imports surge in June China’s imports of agricultural commodities were generally strong in June, suggesting a pick up in underlying demand. However, opportunistic buying due to lower prices is likely to have been a factor... 21st July 2015 · 1 min read
Commodities Update Subdued demand will undermine cocoa prices The latest European and North American cocoa grinding data continue to point to subdued demand. Combined with a rebound in Ghanaian production, we think that the price of cocoa will fall this year. 17th July 2015 · 1 min read
Commodities Update Sales of China’s cotton stocks to push prices lower The price of cotton has been one of the better performing among agricultural commodities this year. However, we think prices are likely to fall as China seeks to sell its huge cotton reserves. 14th July 2015 · 1 min read
Commodities Update Lower opening corn & soybean stocks mask the bigger picture Although market prices reacted positively to the USDA’s latest WASDE report, there is no evidence to suggest that world grain and soybean supplies are facing a significant tightening. We think the... 13th July 2015 · 1 min read
Commodities Weekly Ouch! Commodity investors could be forgiven for a huge sigh of relief that this week is over. The combination of the crisis in Greece and – especially – worries about the fallout from the slump in China’s... 10th July 2015 · 1 min read
Commodities Update Malaysia Monthly Palm Oil Data (Jun.) Data released earlier today by Malaysia’s Palm Oil Board show that although crudepalm oil production declined in June, it was still 12% higher y/y. Inventories alsoremain significantly higher on a... 10th July 2015 · 1 min read
