Tuesday, September 9, 2014

Weak Economic Data Suppress Crude Prices

And this, despite bellicose talk and acts from Russia.

New York - Brent crude fell below $100 a barrel on Monday, the first time in nearly 15 months, before returning to close in three-digit territory but down on the day as fear of Opec output cuts helped the market recover from weak Chinese and US data.
Slower-than-expected growth in the world's top oil consumers, and ample supply, has pushed prices down from a high for the year above $115 in June, complicating central banks' efforts to ward off deflation.

Global Weakness Collapses Copper Prices

Copper tends to be a bellwether commodity because prices tend to reflect overall supply and demand. Here is the headline from FT yesterday:

This chart doesn't show broad-based weakness, at least not yet!

Corn Continues Weak

Corn extended a slump to trade near the lowest level in four years on speculation yields in the U.S., the biggest grower, will be bigger than the government estimated last month. Soybeans and wheat also declined.

Sugar Prices to Go Higher

Cutbacks in the world's largest sugar producer could end a multi-year supply glut, sending prices higher next year, according to traders.

 But there is no sign of a price shift yet in this chart!