Page 100 - MEX-Yearbook-2017

MEX Almanac

July 2017

Precious Metals addition to that, the reports of the International Energy Organization also
The precious metal basket underwent a bullish trend during the month of mentioned that the demand for oil for the rest of the year would be high,
July. Gold gained the most in two months as a surging Euro dragged down which led to price hike. The price of natural gas fell which was owned to
the US Dollar to its weakest since June 2016, making bullion cheaper for low market transactions. Alongside this, the market could not get a new
holders of other currencies. The prices jumped after the Federal Reserve route.
said it would begin to wind down its massive holdings of bonds soon,
pushing the greenback lower. Silver prices rose as the combination of Brent Crude Open Close % Change
haven demand and bargain-hunting boosted the market. Moreover, the Crude Oil 4855.00 5224.00 7.60%
silver price hiked as the dollar fell to 15-month lows in the wake of the Heating Oil 4582.00 4975.00 8.58%
Federal Reserve’s latest policy decision. Platinum and Palladium were Natural Gas 39.01 43.36 11.15%
higher as traders reacted to Janet Yellen’s testimony to Congress. The 302.30 278.50 -7.87%
precious metals got a boost after Janet Yellen communicated that the
pace of future rate hikes would be “gradual”. Furthermore, platinum Agro
prices increased due to the increasing demand from the automobile July 2017 witnessed a bullish momentum as the price of the commodities
sector. Palladium prices advanced due to the increasing demand from the except wheat were on positive trend. The cocoa price has increased after
major consuming nations and declining supply from the major producing strong grind figures from Asia. Potential damage to the current and the
countries. next crop because of the possible spread of broca has led to price hike of
coffee. Worries about the heat in the US corn-belt forced the price of corn
Gold Open Close % Change to jump. The dry weather led to the way of high price rise. According to
Silver 39937.50 40700.00 1.91% a market analyst, the price of cotton went up because of the low supply
Platinum 534.70 539.70 0.94% in relation to the market demand. The soybean oil prices have risen by 7
Palladium 29765.00 30267.50 1.69% percent since the beginning of June, and this can be credited to the crop
26979.00 28453.00 5.46% damaging dry weather. Purchased based on technical analysis increased
the cost of soybean. Total consumption of soybean in the world’s food
Base Metals industry was estimated to be 200 million tons. The price of sugar
Copper prices rose after a rapid build-up of inventories that had weighed strengthened because of the weather issue in Brazil. The price escalated
on the market since late June halted and workers voted to strike at a mine because of the frost risk which remained because of the low temperature
in Chile, raising supply concerns. The prices surged to their highest levels forecasts in the following days. However, wheat saw bearish trend. The
in more than four months after robust data supporting China’s economic wheat price decline can be accredited to huge production and storage of
growth, while a gauge of global stocks marked a record high for a third one billion bushels.
straight session. Copper climbed to its highest in more than two years on
a back of a weaker dollar and talk that China’s appetite for refined metal Open Close % Change
could grow if it curbs scrap imports. 185.10 206.80 11.72%
278.90 306.00 9.72%
Copper Open Close % Change Cocoa 14.54 14.60 0.41%
598.00 637.40 6.59% Coffee 154.56 154.78 0.14%
Corn 71.54 76.26 6.60%
Energy Cotton 33.77 36.38 7.73%
Oil prices extended gains as the U.S. government cut its crude production Soybean Oil 30.12 32.86 9.10%
outlook for next year and as fuel inventories dropped. The oil price Soybean 18.21 17.43 -4.28%
climbed sharply overnight as the Energy Information Agency cut its Sugar
forecast for U.S. production in 2018 and API data showed another large Wheat
inventory drawdown. Oil prices rose to two-month highs boosted in part
by expectations of U.S. sanctions against Venezuela’s oil sector and as The figures above are the percentage change in the prices of corresponding commodity over the
supply concerns have decreased in recent weeks. Moreover, the American corresponding month. % change is calculated as ((Close-Open)/Open*100)
Weekly Oil Storage Report showed a drop in oil by 76 million barrels. In

99 | MEX NEPAL YEAR BOOK 2017