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World oil prices slip after 20pc jump

World oil prices eased on Friday on renewed concern over the US-China trade war, but futures still posted weekly gains, with Brent marking its biggest weekly increase since January, after an attack on Saudi Arabia’s energy industry last weekend.

Brent crude LCOc1 futures fell 12 cents to settle at $64.28 a barrel, while US West Texas Intermediate (WTI) crude CLc1 futures ended 4 cents lower at $58.09 a barrel.

For the week, however, Brent rose 6.7%, its biggest gain since January, while WTI gained 5.9%, the most since June.

The oil market jumped nearly 20% on Monday in reaction to the Sept. 14 attack, which halved Saudi production and cut global supplies by about 5%. But prices have since pared most of those gains on assurances from the kingdom that it would restore lost production by the end of this month.

Gold gains; palladium hits record high

Gold edged higher on Friday, heading for its first weekly rise in four, as investors focused on Middle East tensions while palladium hit a record peak on short supply.

Spot gold was up 0.1% at $1,500.47, up about 0.8% over the week. US gold futures were steady at $1,506.70.

Meanwhile, palladium jumped 1.2% to $1,643.31 an ounce, having touched a record $1,649.09. The auto-catalyst metal, which is in short supply, was up 2.3% over the week and on track for a seventh straight weekly gain.

Silver firmed by 0.1% to $17.78 an ounce, up 2% for the week and heading for a first weekly gain in three, while platinum rose 0.3% to $939.55.

Shanghai copper hits 1-month high on trade talks

Shanghai copper jumped to a more than one-month high, while London copper hit its highest in over two weeks on Thursday after China and the United States agreed to hold trade talks.

Chinese and US trade teams will hold talks in mid-September before high-level negotiations next month, China’s commerce ministry said, adding that both sides agreed to take actual actions to create favourable conditions. The prolonged trade war has been weighing on global growth and on demand outlook for copper, used widely in power and construction.

The most-traded copper contract on the Shanghai Futures Exchange rose as much as 2.4 percent to 47,280 yuan ($6,665.91) a tonne, its highest since July 30, before easing to end up 1.7 percent at the close. Three-month copper on the London Metal Exchange edged up 0.2 percent to $5,759 a tonne by 07103 GMT, after advancing as much as 1 percent earlier in the session to $5,802.50 a tonne, its highest since Aug. 19.

 

NY December coffee targets

New York December coffee still targets a range of $0.9775-$0.9905 per lb, as suggested by its wave pattern and a projection analysis. The contract is riding on a wave c, the third wave of a three-wave bounce from the Aug. 20 low of $0.9340. This wave, along with its preceding two waves, has been controlled by the various projection levels of a bigger wave C from $1.1440. The wave c has travelled above a falling trendline. It may extend into the target range. Support is at $0.9480, a break below which could confirm the continuation of the downtrend towards $0.9220.

CBOT corn may fall to $3.57

CBOT December corn may fall to $3.57 per bushel, as it has broken a support range of $3.63-3/4 to $3.66. The range is formed by the May 13 low and the 86.4 percent projection level of a downward wave (c) from $4.24-1/2.

The next support will be at $3.57, around which a decent bounce may occur. A break below $3.57, which looks unlikely, could cause a fall to $3.47. A sudden surge above $3.66 could signal the break below the support range was false, and a bullish target zone of $3.72-3/4 to $3.82-3/4 will be established accordingly.

Indonesia sees surge in nickel-related exports

Indonesia’s ban on nickel ore exports could boost the country’s earnings from the metal five-fold in the next five years through growth in industries such as stainless steel and battery materials, a minister said on Wednesday.

In a move that threatens to cut global supply, the world’s top nickel miner said this week it would stop nickel ore exports from Jan. 1, 2020, two years earlier than initially indicated, to promote more domestic processing. Luhut Pandjaitan, a coordinating minister overseeing mining, said nickel-related export earnings will surge from last year’s $5.8 billion, with investment in processing pouring into the nickel-rich region of Morowali in Central Sulawesi province. Indonesia aims to have 36 nickel smelters by 2022 with a total ore processing capacity of 81 million tonnes per year.

Raw sugar extends recovery

Raw sugar prices on ICE rose on Tuesday as short-covering helped the market recover from last month’s near 10 percent loss, while arabica coffee touched a two-week low.

October raw sugar settled up 0.05 cent, or 0.45 percent, at 11.19 cents per lb. The contract lost 8.8 percent last month in its biggest monthly percentage drop in a little more than a year. Speculators lifted their net short position in raw sugar on ICE Futures US in the week to Aug. 27 to its highest in nearly three months. Brazil, a top sugar producer, exported 1.51 million tonnes of raw sugar in August compared with 1.43 million tonnes a year earlier. The International Sugar Organization on Monday forecast a global sugar deficit of 4.76 million tonnes in the 2019/20 season. October white sugar settled down $0.5, or 0.12 percent, at $304.40 per tonne.

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