TV

Ole Hansen
Saxo Bank's Head of Commodity Strategy Ole Hansen rounds up the highlights of the commodity market week. After three weeks of gains markets were hit by USD fluctuations, with the clearest example seen in Gold.
Article / 20 December 2012 at 9:49 GMT

Commodity momentum slowing as holiday calm approaches

Head of Commodity Strategy / Saxo Bank
Denmark

In this last update before Christmas we find that negative momentum in energy is slowing while positive momentum in platinum and copper is also slowing in response to the current weakness seen in silver and gold. Grain markets have given back some of the gains witnessed during the year with both soybeans and corn selling off over the last couple of days.

Commodity momentum

2y
dahu73 dahu73
Hi Ole,
What's your expectations and views for the US grain market (esp. corn and wheat) in the very beginning of the year?
Do you think that the current sell-off is only due to the year end and some profits taken?
Look forward to reading you.
Season's greeting from Switzerland.

Just now
2y
Ole Hansen Ole Hansen
Grain market prices have all retraced during the last month, not least corn which yesterday fell over its own cliff (718) following a report from a US private forecaster who raised the US 2013 corn acreage to 99 mio acres, the largest since1936. Wheat followed corn lower making it more attractive to foreign buyers considering the dollar weakness in recent days. Going into 2013 some of the worries about supplies have relaxed as demand rationing has helped to preserve low levels of stock. We are however only one bad spring (repeat of 2012) away from seeing higher prices again. On that basis, given the already considerable correction, further downside from here begin to look less likely. Speculative investors have been forced to throw in the towel and while that is ongoing potential buyers might as well sit on the fence. Happy holidays.

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Tradingfloor.com permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Tradingfloor.com and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Tradingfloor.com is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Tradingfloor.com or as a result of the use of the Tradingfloor.com. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through Tradingfloor.com your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Show latest activity
Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail