Commodities: Mixed sentiment - ANZ

Commodities were mixed in the previous session, with oil and iron ore prices higher, base metals mixed and gold largely unchanged.

Key Quotes

“Oil prices were stronger, with WTI rising above USD44/bbl. The market was encouraged by the potential for production caps from Libya and Nigeria. News that a 24 July meeting in Russia to discuss the oil market situation will include the two African producers was greeted with enthusiasm, given their recent expansion in output.”

“Base metals were mixed. Copper prices were broadly flat despite news that LME inventories jumped 26% last week to a six-week high. Zinc and aluminium also declined, while nickel, lead and tin rose.”

“Iron ore rose back above USD60/tonne as steel rebar prices in China jumped to their highest since March. News of another month of weak exports from Rio Tinto was also supportive.”

“Gold prices were broadly unchanged after Friday’s strong US payrolls number sparked a selloff in the precious metals sector.”

“Grain prices rose across the board, with strength in soy and wheat futures. Sugar fell 3.5% after reaching the highest level for a month.”