Agri commodities prices drop on good monsoon news, slide in copper prices & OPEC cuts oil demand forecast

08th June – 14th June

1. Copper drops on demand concerns over trade war worries

Jun 13, 2019

Copper prices dropped as demand may slow down on the back of poor economic data in the backdrop of the US-China trade war. China’s industrial output fell to a 17-year low in the first two months of 2019, indicating poor economic conditions for major consumers of base metals in the world.

Source: Reuters

2. Oil demand may drop if the trade war is not sorted out

Jun 13, 2019

The ongoing trade war is making the demand outlook for oil rather gloomy. Economic data coming in from major economies is weak, even as the trade conflict between the world’s two largest economies, the US and China, continues to escalate.

Source: Business Line

3. OPEC cuts oil demand forecast

Jun 13, 2019

The OPEC has cut its forecast for global oil demand growth for this year. OPEC has also warned of further potential cuts as international trade disputes continue to fester. The world oil demand will rise by 1.14 million barrels per day (bpd) this year, which is 70,000 bpd less than previously expected.

Source: Business Line

4. Federal Reserve may cut interest rates two times in the year 2019

Jun 13, 2019

Fed policymakers are scheduled to meet on June 18-19 against the backdrop of rising trade tensions, slowing growth and a sharp step-down in hiring in May, which have led financial markets to price in at least two rate cuts by the end of 2019.

Source : Economic Times

5. US blames Iran for attack on oil tankers

Jun 13, 2019

The US Secretary of State has blamed Iran for attacks in the Gulf of Oman that severely damaged two oil tankers and sparked a surge in crude oil prices. The Pentagon released a video showing an Iranian military vessel removing an unexploded mine.

Source: Financial Times

6. Silver premiums are up due to short supply

Jun 11, 2019

Aggressive buying by China, which is buying the metal for industrial usage, pushed up silver premiums in India. Washington-based The Silver Institute has predicted sentiments to be more supportive of the silver market this year. Rising silver premiums due to short supply and the gold silver ratio at multi-year highs may give some strength to silver prices in the very short term However, weakness may continue in the medium term over weak industrial demand.

Source: Economic Times

7. China’s gold reserves rose to 61.61 million ounces in May

Jun 10, 2019

The People’s Bank of China increased its bullion reserves to 61.61 million ounces in May from 61.10 million ounces a month earlier. The PBOC’s move comes as other central banks, especially from the emerging markets, increased their bullion holdings.

Source: Bloomberg

8. Agri commodities prices drop on good monsoon news

Jun 10, 2019

The possibility of a good monsoon season improves production prospects of the Kharif crop for the year. The Kharif crop mainly depends on the monsoons; the prices of Soybean, Castor, Coriander, Jeera and cotton may drop marginally in the near term although El Nino conditions during the rainy season may increase volatility.

Source: Economic Times