Silver dips and cotton slipsOle Hansen
After silver rallied by more than a quarter in just over a week, it's perhaps not surprising its run came to an end this week. However, precious metals in general maintained their support despite all the talk of the Fed reducing its bond buying programme. Copper found support in better than expected Chinese manufacturing data which once again raises expectations of a pick up in demand. The price, however, remains range bound while we wait for further confirmation.
Oil markets went their separate ways with Brent seeing its premium over WTI rise to more than five dollars. Cotton was the biggest loser on the commodity markets and saw the biggest three day sell-off in more than two years. The slump was driven by excellent growing conditions in parts of the USA. Saxo Bank's Head of Commodity Strategy, Ole Hansen, explains what's been going on in his specialist area this week.