Precious Metals Rose, Gas Retreated

Highlights:

• ENERGY:
  Brent crude increased by 0.7% or 59 cents to $85.45 a barrel. Meanwhile, WTI crude climbed by 1.1% or 90 cents, to $83.73.
  Natural gas futures for November delivery settled at $5.41 in New York on Friday.
• METALS:
  Gold futures for December delivery were trading with a rise of $0.60 at $1,768.30. Meanwhile, Comex silver futures for December delivery were trading with an increase of $0.031 at $23.38 an ounce.
  Three-month copper on the LME was trading with a gain of 0.2% to $10,303.50 a tonne.
• AGRICULTURAL:
  CBOT soybeans fell by 0.3% to $12.13-1/2 a bushel. At the same time, corn advanced by 0.1% to $5.26-1/2 a bushel.
  

Oil at multi-year highs

Oil prices moved up again. After declines, oil attracted buyers and it hit multi-year highs on Monday. Increasing demand and high natural gas and coal prices prompted users to switch to oil and diesel. 

Brent crude increased by 0.7% or 59 cents to $85.45 a barrel. Meanwhile, WTI crude climbed by 1.1% or 90 cents, to $83.73. 

ANZ bank believes that easing restrictions will help the recovery in the demand. Meanwhile, cold temperatures in the northern hemisphere are likely to sustain a supply deficit. 

Natural gas slipped despite favorable inventory data

Natural gas futures for November delivery settled at $5.41 in New York on Friday. Natural gas prices declined last week even though inventory data was lower than expected. Price drop resulted from a mild weather outlook which silenced heating or cooling demand. 

The EIA’s weekly inventory data showed a lower than expected gain in natural gas supplies. Stockpiles increased by 81 billion cubic feet for the week ending October 8. In contrast, analysts expected a rise of 89 Bcf. 

However, the gain was above the five-year average of 79 billion cubic feet. 

Thus, even though inventory numbers have been bullish for gas, bearish weather pulled down commodity prices. 

Still, analysts believe that gas prices will remain positive in the short and medium term. 

Gold and silver edged up

Gold futures for December delivery were trading with a rise of $0.60 at $1,768.30. Meanwhile, Comex silver futures for December delivery were trading with an increase of $0.031 at $23.38 an ounce.

Copper climbs to record highs amid a supply deficit

Copper prices expanded on the LME after the industrial metal storage fell to their lowest level in several decades. 

Three-month copper on the LME was trading with a gain of 0.2% to $10,303.50 a tonne. The number is not far from the May all-time high of $10,747.50. 

Copper prices extended their rise to record highs on Monday as signs of extremely short supply offset concerns that slowed growth in China would affect demand.

The prices of red metal, used in energy and construction, increased by 10% last week. In 2021, it accumulated a rise of more than 30% after rising by 26% in 2020.

Good demand outlook drives corn prices up

Soybeans could not retain strong rises last week and slipped on Monday. Meanwhile, corn advanced due to export prospects for US supplies. 

CBOT soybeans fell by 0.3% to $12.13-1/2 a bushel. At the same time, corn advanced by 0.1% to $5.26-1/2 a bushel. 

Last week, USDA forecasted the corn and soybean supplies above expectations. Matt Ammermann from StoneX stated that USDA’s estimates are affecting soybeans prices. The US has exported agricultural commodities to China but the sales have been fairly modest. A lot more exports are needed to support the market. 

For a third consecutive day on Friday, US exporters traded soybeans to China or unknown destinations. 

Ammermann also added that corn prices are pulled between different indicators in the market. The USDA’s larger supply estimates are contrasting better than expected harvest results in the United States. Meanwhile, the outlook for US corn exports remains positive.