#forexbreakfast focus commodity (eng)
The rise of the Bloomberg Commodity index that had lasted for 5 weeks has stopped. The decline mainly affected the industrial metals and agricultural sectors. In the agricultural sector, good news on the supply side triggered profit-taking. Therefore, the worst sector of the week was agriculture -5%, the most marked drops were in corn, wheat, and cotton. The USDA report was decisive, highlighting an increase in global inventories for the next season, and the prospect of lower Chinese imports for 2022. Good week for soy as it benefits from supply-side fears in Brazil. Industrial metals badly -2.6%. The sector was affected by general sales, after the message from Chinese Premier Li who highlighted the need to act in the face of rising commodity prices. The Iron ore has come to lose 15%. Tepid week for the energy sector + 0.6%. Good news from the OPEC report predicts an increase of 230,000 b / d in world crude oil demand for 2021. The precious metals sector did not move much + 0.2%. Gold has returned to the $ 1850 zone, thanks to the weakness of the dollar and the drop in rates. The other metals, on the other hand, suffered from the drops in the industrial sector.
Brent rose last week, the third in a row. Prices remain above the uptrend line that began last November. For this week, watch out for the 66.5 level; where the bullish trendline and a dynamic support passes. The indication provided above remains valid, a break in the uptrend line could bring prices to the 60.71 zone. On the upside, the first resistance is at 71.75.
Lateral week for gold, which tried to retest the resistance at 1855. If this resistance were broken, there would be a signal of strength, with prospects of returning to 1900. On the downside, the support at area 1800 is to be monitored, where the long-term trendline passes. Its break could bring prices to the 1729 and 1676 zone then.
New record for copper at $ 10,719. After hitting the record, however, the prices closed down after 5 consecutive weeks in positive territory. On the upside, the first resistance to monitor is 10719. On the downside remains to monitor area 10,000$. The break of this support would give a clear signal of weakness. The oscillators both remain overbought.