6 Mar 2014
Commodities: Easing Ukraine tensions drives commodities delines
FXStreet (London) - WTI prices yesterday fell for a third-straight day following a report from the US Energy Information Administration showing expanding stockpiles.
Higher than expected stockpiles
Distillate stockpiles increased by 1.41m barrels in the week ending February 28. Consensus expectations had been for a 1m decline.
The price declines on higher-than-forecast stockpiles adds to the bearish momentum for crude prices, driven lower by signs of easing tension between Russia and the Ukraine. Prices held just above the USD100 level yesterday at USD100.86/barrel.
Corn and wheat drop on eased supply concerns
Corn and wheat prices have declined after surging on mounting tensions in the Ukraine.
Corn contracts for May delivery fell to a low of USD4.795/bl yesterday on expectations that the crisis will not heavily affect the Ukraine as the world’s third largest corn exporter.
The Ukraine is also the world’s sixth-largest wheat exporter, and contracts for May delivery hit a low of USD6.385/bl yesterday, a second day of declines.
Gold safety bids decline
Gold continues to decline as bids for the haven asset decline on easing tensions in the Ukraine. Gold had hit a fourth-month high of USD1,354.87/oz on Monday following Russia’s manoeuvres in the Crimea, but has dipped to USD1,333.20. Upside pressure may return if we see further disappointing labour market data in tomorrow’s non-farm payroll numbers, adding to concerns over the strength of the US recovery.
Higher than expected stockpiles
Distillate stockpiles increased by 1.41m barrels in the week ending February 28. Consensus expectations had been for a 1m decline.
The price declines on higher-than-forecast stockpiles adds to the bearish momentum for crude prices, driven lower by signs of easing tension between Russia and the Ukraine. Prices held just above the USD100 level yesterday at USD100.86/barrel.
Corn and wheat drop on eased supply concerns
Corn and wheat prices have declined after surging on mounting tensions in the Ukraine.
Corn contracts for May delivery fell to a low of USD4.795/bl yesterday on expectations that the crisis will not heavily affect the Ukraine as the world’s third largest corn exporter.
The Ukraine is also the world’s sixth-largest wheat exporter, and contracts for May delivery hit a low of USD6.385/bl yesterday, a second day of declines.
Gold safety bids decline
Gold continues to decline as bids for the haven asset decline on easing tensions in the Ukraine. Gold had hit a fourth-month high of USD1,354.87/oz on Monday following Russia’s manoeuvres in the Crimea, but has dipped to USD1,333.20. Upside pressure may return if we see further disappointing labour market data in tomorrow’s non-farm payroll numbers, adding to concerns over the strength of the US recovery.