commodities sector loaddown – ANZ

By FXStreet Analysts at ANZ offered the load down on the commodities sector.

Key Quotes:

“Crude oil prices were stronger. Another week, another OPEC supply cut rumour. Saudi Arabia’s oil minister plans to meet with his Russian counterpart in Doha on Tuesday to discuss the oil market. Saudi Arabia is not keen to cut production to restore the supply/demand balance, but could consider output cuts if other producers join.

Base and precious metal prices were mixed. The rebound in ‘risk’assets suppressed the demand for gold. On the corporate side, Freeport-McMoRan has agreed to sell an additional stake in Morenci (one of its biggest mines) to Sumitomo Metal Mining. Freeport-McMoRan, the world’s top publicly traded copper producer, is battling to rein in debt after the collapse in prices.

Iron ore prices rebounded sharply after Friday’s decline. Data from China customs has confirmed our view of temporary tightness in the iron ore market before the Chinese New Year. Chinese iron ore imports fell to 82.19mt from 96.27mt a month earlier. Even with such a sharp fall in imports, port stocks registered gains highlighting underlying weakness in
consumption and steel production.

Agri markets were closed due to the public holiday in the US. China’s January despite prices continuing to fall to …read more

Source:: FX Street