5 Key Charts To Watch In International Commodity Markets This Week

(Bloomberg) — North America’s metal trade is gathering in Atlanta because the sector grapples with uninspired US demand, slumping costs and an overabundance of Chinese language metal. A key Brazilian sugar report will supply insights on upcoming value strikes for the sweetener. And crude oil stockpiles at a key US hub are at their lowest ranges since February.

Listed below are 5 notable charts to contemplate in international commodity markets because the week will get underway.

Metal

North America’s metal trade is converging in Atlanta for the annual SMU Metal Summit from Monday to Wednesday. Scorching subjects are anticipated to incorporate the impression of surging Chinese language exports, which have dragged down costs around the globe, and whether or not lackluster US demand will begin to recuperate. Prime of thoughts for convention individuals would be the future course of the market, with metal costs down greater than 40% this yr and approaching lows final seen on the finish of 2022.

Sugar

Upcoming knowledge for sugar manufacturing in Brazil — the world’s prime exporter — might be determinant in signaling whether or not the worldwide market stays nicely provided. The nation is midway via its sugar-cane harvest, and up to now a stronger-than-usual manufacturing tempo has helped drive down costs of the sweetener by almost 12% this yr. Nonetheless, dry climate is threatening to harm yields, and merchants will search for clues in a report from trade group Unica that’s scheduled to return out this week.

Oil 

Crude shares on the key hub of Cushing, Oklahoma, have plunged to six-month lows as refiners within the area ramp up exercise following surprising outages. Declining crude shipments from Canada, which slid to the bottom since April earlier this month, have additionally contributed to the availability tightness on the storage depot. The drawdowns at Cushing have helped assist the bullish backwardation construction within the US crude futures curve, and timespreads may rally additional if the streak of declines continues.

Dairy

China’s anti-subsidy investigation into dairy imports from the European Union final week marks the newest in a tit-for-tat commerce dispute. The probe is focusing on a number of dairy merchandise, together with contemporary and processed cheese, in keeping with China’s Ministry of Commerce. The newest improvement provides to the commerce quarrel between the 2 that has seen items corresponding to electrical automobiles and pork threatened by the opportunity of greater tariffs. China is the second-biggest export marketplace for EU dairy.

Local weather Tech

The US has surpassed China because the main backer of know-how aimed toward addressing the local weather disaster, in keeping with a current evaluation from BloombergNEF. Although the US led the way in which, largely as a result of efficient tax credit and incentives, funding for the sector fell by almost 50% globally in contrast with the identical interval final yr. Total, climate-tech firms, which embody classes like electrical automobiles, batteries and clear energy, raised $22 billion worldwide within the first half of this yr.

–With help from Doug Alexander, Devika Krishna Kumar and Michelle Ma.

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