Ole Hansen
Stay updated on what’s happening with oil, gold and other raw materials. Join Saxo Bank Head of Commodity Strategy Ole Hansen as he explores the world of commodities and how fundamentals, geopolitics and other factors could influence prices. He also looks at market opportunities for both traders and investors.
Article / 03 June 2016 at 9:15 GMT

Daily Shot: Commodities recovery 'will take a while' Team / Saxo Bank
  • Soybean meal futures rally sharply
  • Sugar, lean hogs prices also spike
  • Broad commodity index still low overall

By Walter Kurtz*

Today we have several updates on commodities.

1. Soybean meal futures continue to rocket higher. While China's rising demand for feed is one of the factors, at this point hot money is all over this market.

2. The situation is similar with US sugar and soy futures, where the rally has accelerated. 

Sugar and soy Sugar and soy
3. US lean hogs futures jump as pork prices in China reach record highs this week. This market is contributing to the soy meal rally.
Lean hogs
4. Zinc rally resumes on lower production. See an overview from the Financial Times.
Zinc Zinc
5. Coal prices in Asia are waking up. 

6. While some of these rallies look impressive, the CRB broad commodity index recovery will take a while. 

7. Precious metals are under pressure ahead of the Fed's rate hike. Here is platinum spot. 

Precious metals
8. The US gasoline market is well supplied, as inventories remain way above the typical levels for this time of the year.

9. We continue to see a disconnect between crude oil and the trade-weighted US dollar index.


— Edited by Michael McKenna

* Walter Kurtz is an alias

**This is an abridged version of the Daily Shot. To subscribe to the full version, link to the Daily Shot and select the appropriate command. E-mail addresses are never shared with anyone.


The Saxo Bank Group entities each provide execution-only service and access to 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 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 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 or as a result of the use of the 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 your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. 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 ourtrading 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
- 沪ICP备13028953号-1

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