Commodity Snapshot
Cocoa futures in New York have surged due to supply concerns in top growing regions, with prices up by 0.23%. The Ivory Coast, the world’s largest cocoa producer, is a major bullish factor for cocoa prices, as farmers shipped 1.22 MMT of cocoa to ports from October 1 to March 10, down -29% from the same time last year. The Ivory Coast cocoa regulator expects the mid-crop harvest to fall -33% to 400,000 MT from 600,000 MT last year.
The cocoa market was the strongest performing commodity of 2023, with London cocoa finishing up 70% and US cocoa futures rallying over 61% last year. Chocolate makers Hershey and Mondelez are planning more price hikes due to the surge in cocoa prices over the past year due to shrinking supplies.
Iron ore prices fell after hitting their lowest in over four months due to weak fundamentals in China. Base metal prices were also under pressure ahead of CPI data. Analysts attribute the downward pressure to a temporary supply glut and weaker demand recovery.
The estimated value of open interest across global commodity markets increased by 4% to $1.25 trillion, the highest in four months. Base metals’ open interest also increased by +7% week-over-week. Energy was the only major sector to experience a decrease. Global commodity markets registered the highest weekly inflows since January 2023, totaling $41.8 billion.
Spot gold was trading -0.3% lower at $2,176.89 an ounce as markets awaited the release of U.S. CPI data, which could influence the Federal Reserve’s policy path. A hotter-than-expected reading could delay the central bank’s easing cycle. Low interest rates help bullion by reducing the opportunity cost of holding the zero-yielding asset. A mixed tone prevailed across commodity sectors, with China’s economic growth concerns affecting bulks and supply concerns supporting industrial metals.
Recent Commodity Price Movements
Energy
Crude oil (CL1:COM) +0.63% to $78.42.
Natural Gas (NG1:COM) +0.63% to $1.77,
Metals
Palladium (XPDUSD:CUR) -0.82% to $1,022.10.
Platinum (XPTUSD:CUR) -0.31% to $930.10.
Copper (HG1:COM) -0.05% to $3.92.
Agriculture
Corn (C_1:COM) -1.06% to $423.69.
Wheat (W_1:COM) -0.59% to $532.64.
Cotton (CT1:COM) -0.94% to $94.17.
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Spot gold was trading -0.3% lower at $2,176.89 an ounce as markets awaited the release of U.S. CPI data, which could influence the Federal Reserve’s policy path. A hotter-than-expected reading could delay the central bank’s easing cycle. Low interest rates help bullion by reducing the opportunity cost of holding the zero-yielding asset. A mixed tone prevailed across commodity sectors, with China’s economic growth concerns affecting bulks and supply concerns supporting industrial metals. Commodity Snapshot Commodity Snapshot Commodity Snapshot
Natural gas and crude oil prices were trading in the green, while oil prices fell earlier due to persistent demand concerns in China. NS Trading president Hiroyuki Kikukawa said that concerns over weak demand in China outweighed the extension of supply cuts by OPEC+. Mixed US jobs data prompted some traders to adjust positions. However, losses will be capped by increased geopolitical risk, with the possibility of a ceasefire in the Hamas-Israel war and conflict expansion in Russia and its neighbors. Europe remains the most impacted region, as oil product shipments from Asia have fallen since January. OPEC+’s voluntary production cut agreement could tighten the market as demand recovers from its seasonal lull.
Natural gas and crude oil prices were trading in the green, while oil prices fell earlier due to persistent demand concerns in China. NS Trading president Hiroyuki Kikukawa said that concerns over weak demand in China outweighed the extension of supply cuts by OPEC+. Mixed US jobs data prompted some traders to adjust positions. However, losses will be capped by increased geopolitical risk, with the possibility of a ceasefire in the Hamas-Israel war and conflict expansion in Russia and its neighbors. Europe remains the most impacted region, as oil product shipments from Asia have fallen since January. OPEC+’s voluntary production cut agreement could tighten the market as demand recovers from its seasonal lull.
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