Commodity Roundup: November 2014
Commodity prices mostly fell in November, led by losses in crude oil.
Crude oil prices plunged as OPEC refrained from trimming its oil output despite falling prices. OPEC seems more focussed on preserving its market share and does not seem inclined to provide any floor to oil prices. Thus, there remains scope for further downside to prices in the near-term. The Brent crude oil price has fallen 15% this month and is hovering around USD 73/bbl.
Gold staged a slight recovery in November after witnessing losses the month before. Easing of monetary policy stance by Japan and China aided sentiments around gold. However, firm Dollar and continued ETF outflows limited the upside.
Industrial metal prices were mixed in November. Nickel rose 5% amid disruption in supply of nickel-ore from Philippines owing to adverse weather conditions. On the other hand, copper fell by 3% given downbeat growth outlook in China and Europe, which together account for 45% of global copper usage.
Agricultural prices were also mixed. CME wheat and corn prices rose, while NYBOT cotton and sugar prices fell. In fact, cotton prices are down 29% on a year-to-date basis, with slowing imports to China posing further downside risks to prices.