Commodity Capsule: Oil prices slip; Base metals snap 3-week rally
Commodity Capsule: How are bullion, agricultural commodities, and industrial metals faring today? We bring you the latest updates from the world of commodities.
Oil retreats
Oil prices fell on Monday as markets awaited more interest rate cuts from China.
US monetary policy remained in focus before upcoming testimony from Federal Reserve Chair Jerome Powell this week.
Crude markets saw a dose of profit-taking after logging strong gains last week.
Signs of strong refinery demand in China helped offset somewhat hawkish signals from Fed and weak global economic indicators.
Goldman Sachs trims its annual growth forecast for China, stating that current levels of stimulus will be insufficient in supporting economic recovery in China.
This cut follows a string of weak economic indicators from China for April and May.
Gold rangebound; awaits Fed cues
Gold prices moved little on Monday as markets await a string of Federal Reserve speakers and testimonies this week for more cues on monetary policy.
Trading volumes in metal markets are expected to be thin on Monday, on account of the US market holiday.
Gold sticks to a tight trading range seen over the past month amid mixed cues on the path of U.S. monetary policy.
Metals snap three-week rally
Copper prices retreated on Monday following three weeks of strong growth.
Traders locked in some recent profits, with questions over an economic recovery in China weighing on markets.
A slew of major investment banks slashed their Gross Domestic Product (GDP) forecasts for China, citing slower-than-expected economic recovery.
China posted a year-on-year increase of 12.9 per cent in refined copper production in May to 1.1 million tons, a record monthly high.
The dollar index strengthened on Monday near 102; hovering 5-Week lows.
LME copper along with other industrial metals posted 3.5 per cent to 7.5 per cent weekly gains.
Agri Commodities on a roll
Last week saw a sharp northward rally in grains, oilseeds, edible oils, and softs.
Soybean, Wheat, and Corn are trading at multi-week highs.
Dry weather is taking a toll on global production of palm and soybeans keeping the contracts near 6-week highs.
Robusta coffee hit record peaks on Friday amid growing concern over tight supplies in southeast Asia and increased demand in Brazil.
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