Commodities Update 54
Oil, Gold and Wheat prices decreased strongly
The rise of the oil price since the beginning of august has come to an end: Brent decreases on Monday to around USD 49 and WTI to USD 47 per barrel. One reason for the reduction is a potential higher supply. Iraq announced that they are going to increase their oil exports by five percent in the short run. Another influence was the much higher USD price, because many investors expect an interest rate hike after the much-anticipated speech of Janet Yellen. Therefore speculative investors decided to cut some of their oil positions after the strong buys over the last week.
Gold decreased on Monday to a 4 1/2 –week-low of USD 1.315 per ounce. After a strong performance during the Yellen speech, the gold price fell again, due to the strong dollar.
The wheat price notes on Monday at USD 3.83 per bushel, which denotes a 10-year-low. On the one hand, US-dealers give discounts in order to get more space for the corn harvest. On the other hand the forecast of the world wheat production in 2016-2017 was raised again. The International Grains Council (IGC) mentioned in its monthly Grain Market Report an increase of 8 million from July to 743 million. They also expect for 2016-2017 a 20 million higher global closing inventory, compared to 2015-2016.