Commodity

Wheat growers in several exporting countries are reluctant to sell their crops with prices near four-year lows, traders, farmers and millers say, leaving flour makers with dwindling supplies and vulnerable to any potential upswing in prices.

Can silver and copper hold their ground, or are sharper declines on the horizon? The price action suggests a resumption of the bearish trend could be in the cards.

The conflict between Russia-Ukraine and concern around future oil supply disruptions might help limit the WTI’s losses.

Oil prices have been somewhat insulated by the growing tension between Russia and Ukraine. However, natural gas prices have been more sensitive to these developments, while gold, as one would expect, has benefitted from safe-haven demand.

Crude oil flows from Kurdistan could return to the market next year, after the Kurdistan regional government and the central Iraqi government in Baghdad agreed a new production sharing agreement that satisfies both sides.

Precious metals enjoyed a strong run-up ahead of the US elections but turned sharply lower after a simultaneous surge in the USD and yields forced prices through key technical support levels.

Q4 tends to be bullish for gold, and November one of its most bullish months of the year. Yet seasonality has not met bullish plans these past few weeks, and it may not as we enter December either.

Brent settled flat yesterday despite rising tension between Russia and Ukraine. Developments related to Iran’s nuclear program likely countered some of the geopolitical risk.

In the latest reporting week, the Bloomberg Commodity Index lost 2.2%, amid a similar rally in the dollar, driving accelerated long liquidation across precious and industrial metals, as well as crude oil.