#forexbreakfast focus commodity (eng)
Week down for the Bloomberg commodity index -0.4%, the second in a row. Non-ferrous metals worst sector of the week, down by 3.2%. Leading this general trend once again was China. The domestic cut in steel production continues, with a consequent drop in demand for iron (-10.6%). Furthermore, requests for production cuts by local governments continue, up to the first months of 2022. Weakness also in the energy sector, which fell by 1.1%. Meanwhile, pending this week’s OPEC + meeting, Brent has been affected by sales. The predetermined increase of 400,000 b / d is likely to be confirmed. Gas TTF is almost back to normal, -26%, following the order from Russian President Putin to increase supplies to Europe from 8 November. Negative week also for the precious sector -1%. Falling Gold, Silver, and Palladium. The only positive sector of the week was the agricultural sector + 2.3%. Grano USA at the highest levels in 2012, Grano Matif at record levels. Good week also for Coffee, corn, soy, sugar, and cotton.
Negative week for Brent, after dropping below 82.50, recovered ahead of the weekend, closing the week towards $ 83 / b. The daily stochastic has left the overbought zone, while the weekly stochastic remains in this configuration. On the downside, the support to monitor is placed at 82.60. The general trend will remain upward as long as the prices stay above the uptrend line at 72.40. On the upside, the first resistance to monitor is placed at 86.70.
New week in decline for copper that has returned to test the bearish trendline started in May. The daily stochastic is going oversold, while the weekly stochastic has remained unchanged. Support at 9400 is to be monitored, followed by support at 9000. On the upside, resistance to monitor is at 9966.
Last week the upside race of the TTF Gas ended. The uptrend line that started in August has broken down. Support at 64.87 should to monitor this week. A confirmed break at the end of this week would open the odd towards 44.87. The daily stochastic is currently oversold.