Weather dominates commodity markets

by: Nadia Menkveld , Casper Burgering , Hans van Cleef , Georgette Boele

The dry weather in the United States caused quality and quantity concerns for the wheat, corn and soybean crops but prices went up to high and a correction has taken place. The favourable weather in Ivory Coast and India has led to price pressure for cocoa and sugar prices, but it appears that other (upward) factors will dominate the landscape for the coming months.

Hurricane Harvey has put pressure on prices, due to the closure of refineries. However, it was interesting to see that after years of investor focus on the supply side, the demand side has finally gained notice.

For ferrous metals, the conditions have turned more favourable after the summer lull. Steel demand from end-using sectors have increased globally and supply remained constrained.

Monthly Commodity Update_September 2017.pdf (932 KB)