#forexbreakfast focus commodity (eng)
The Bloomberg commodity index ended the week up 2%, returning to its highest level since 2015. Meanwhile, in China, authorities have ordered energy companies to do everything they can to secure as many stocks as possible for the winter. This news has been followed by strong purchases in the energy sector that have been the best of the week, closing up 4.8%. OPEC has confirmed the increase of 400,000b / d for the month of November in line with the intentions of July.
The situation on the TTF gas front remains complicated, which hit the record of 100e/ MWh on Friday.
Good week also for the agricultural index that has closed at + 1.9%. Arabica coffee + 5%, wheat + 4.4%. Soybean bad -3% in the wake of the weakening of Chinese demand. Cotton rose + 8.9% to its highest level since 2011, following the rise in demand and the production deficit.
Tepid week for the precious sector + 0.4%. The trend has been rather mixed. Bad palladium -2.4%. Bad week for the non-ferrous metals sector -3.5% in the wake of the energy crisis in China. Nickel -7.4%. On the other hand, has been a good week for iron + 4.2%, thanks also to the Chinese steel mills which have started to rebuild stocks.
Good week for Brent, that has returned to the highest levels since 2018, briefly surpassing the resistance at 80.40$/ b. Only today, on Monday, Brent managed to break out of the 81$ level. On the downside, the supports at 77.91 and 76.41 remain valid. It should be emphasized that the long-term trend is solidly set on the upside.
Copper prices remained at the bottom of the trading range last week as well. The 8893/8813 support area becomes increasingly important. If this level will be broken, the way would be opened for a hypothetical descent up to area 8000. On the upside, the first resistance to monitor is in the 9462 area, which coincides with the bearish trendline that started from the highs of May.
Last week, the aluminum price has continued to trade below 3000, without ever being able to cross that threshold. If that level will be broken, the target could be 3100. On the downside supports to monitor are placed at 2807 and 2671. The long-term trend remains bullish, but given that the oscillators are in the overbought zone, a tracking of prices in the short term is plausible.