#forexbreakfast focus commodity (eng)
Upward week for the Bloomberg Commodity Index, + 1.5%. All the sectors have closed positively; despite the negative start on Monday, linked to the Evergrande affair in China. The best sector of the week has been the energy sector + 2.4%. Good week for the Brent that has surpassed $ 79 / b in the wake of stronger demand and low US inventories. New rise for TTF gas + 7.9%, in the context of low inventories in Europe and high demand in Asia.
Good week for the agricultural sector + 1.3%. Arabica coffee + 4.2%, in the wake of supply problems in Brazil and Vietnam. Wheat + 2%, soy, and corn almost unchanged.
Tepid week for the industrial sector + 0.9%. Copper aluminum and zinc are back in positive territory after the cooling of the Evergrande affair. This week, however, started in negative territory. Evergrande could be restructured to reduce its debt and Chinese industrial production could decline as a result of electricity rationing. With it, the demand for metals could fall. Iron returns to rise following the increase in stocks in China due to “low” prices.
Close almost unchanged for the precious sector, in the wake of gold. Platinum + 4.7%.
Brent prices hit the highest level over the past three years, exceeding the resistance set at $ 79. The next resistance is at 80.41. Overcoming it at the close this week could give more strength to the movement. But beware of the stochastic indicator that is currently in divergence with prices. On the downside, the first support is found at 77.91, followed by 75.25. The long-term trend is confirmed on the upside, as long as it remains above the uptrend line placed between the lows of April and November 2020.
The prices are still in the trading range that has been in place for weeks. Last week after testing the supports at 8893/8813, prices then returned above 9000. The supports to monitor are 8893/8813 and resistances are 9560 and 10126.
NATURAL GAS TTF
The prices of TTF gas remain high, close to their all-time highs of 80Eur / MWh. The trend remains upward, even if the exponential trend of the graph is not sustainable for long. On the upside, the first resistance stands at 79.30. On the downside, the first supports are at 67.2 and 60.