Page 110 - MEX-Yearbook-2017

MEX Almanac

November 2017

Precious Metals and other oil producing countries might put forward an agreement to cut
The precious metals basket underwent a mixed trend during the review period output. Similarly, oil prices settled higher contributed by tighter supplies
as gold, platinum and palladium tread bullish trend and silver tread bearish. amid ongoing disruption to the Keystone pipeline. Likewise, natural gas
The US Dollar fell against a basket of currencies, as investors hesitated at have bounced as fundamental concerns about an arctic blast and future
emerging details of the U.S. Senate Republicans’ version of a tax cut plan. winter weather arose. Moreover, the cold weather has been accompanied
The U.S. House of Representatives approved a package of tax cuts, while by deficit of natural gas inventory. The price have bounced by almost
a Senate panel advanced its version of the legislation that had President 10 percent since the month start. Furthermore, significant warmer than
Donald Trump’s backing. The Senate version of the measure encountered average temperatures in late September and early October, followed by a
resistance from some within the Republican ranks. This fed doubt among colder than average temperatures in late October and early November have
investors which hurt the dollar and helped gold. However, silver fell giving boosted both the cooling and heating demand respectively.
up the prior session’s gains on pressure from the rising dollar, expectations
for U.S. interest rate hikes and as the market entered a holiday week. The Brent Crude Open Close % Change
US Dollar touched the highest against a basket of major currencies, as the Crude Oil 6104 6338 3.83%
euro weakened amid political risks linked to German Chancellor Angela Heating Oil 5447 5701 4.66%
Merkel’s failure to form a three-way coalition government. Platinum rose on Natural Gas 49.74 50.21 0.94%
the back of robust demand from the major consuming nations. Furthermore, 288.5 303.6 5.23%
workers employed by Lonmin’s community shareholder Bapo Ba Mogale
were protesting that they had not been fully paid, causing minor disruption Agro
at two of the platinum mines causing the prices to tread higher. Palladium November prices for agro commodities witnessed mixed trend. Cocoa,
inclined from the news that Norilsk Nickel is planning to boost purchases corn, soybean oil and wheat had bearish mark whereas other commodities
of palladium for its fund from Russian central bank reserves to help ease had bullish mark. Cocoa prices dropped backed by continuing worries
shortages in the market. about repurchase the export of 200,000 to 250000 tons of cocoa by
the world’s largest producer, Ivory Coast. Lack of production as per
Gold Open Close % Change increasing demand in major coffee producing countries resulted in price
Silver 40860 40920 0.15% hike. Likewise, seasonal factors also contributed to the price appreciation.
Platinum 537.1 524.3 -2.38% Abundant supply of corn created a weak demand environment, as a result,
Palladium 2.38% the price of corn flattened. USDA gave us a mildly bullish supply demand
29587.5 30292.5 2.83% report for November. And, after a typical market fake-out, cotton prices
31381 32268 reversed and moved higher. Strong demand in China, potential weather
effect and political instability in South America contributed to the rise in
Base Metals price of soybean. Sugar price escalated because of dry weather in India. On
Base metals slid as data from China fuelled fears of a slowdown in the the other hand, South Africa had put tax on the sugar, which intensified the
world’s top commodities consumer, with falls in oil and global stocks price of sugar. Chicago wheat futures shrunk with abundant global supply
indicating broad-based caution among investors. Copper prices also fell pressuring prices.
after weaker-than-expected economic data from China raised concerns
over demand. China’s economy cooled further last month, with industrial Open Close % Change
output, fixed asset investment and retail sales missing expectations as the 208.8 204.8 -1.92%
government extended a crackdown on debt risks and factory pollution. 274.7 282.9 2.99%
13.58 13.41 -1.25%
Copper Open Close % Change Cocoa 150.8 160.14 6.19%
685.5 670.3 -2.22% Coffee 76.4 74.36 -2.67%
Corn 36.14 36.21 0.19%
Energy Cotton 32.4 33.2 2.47%
The price for energy commodities in the month of November saw an Soybean Oil 15.36 15.2 -1.04%
overall bullish trend as all four commodities in the energy basket treaded Soybean
towards north. Oil prices rose supported by supply cuts by major exporters Sugar
as well as continuing concern about political developments in Saudi Wheat
Arabia. Moreover, rising global demand data and expectations that OPEC
The figures above are the percentage change in the prices of corresponding commodity over the
corresponding month. % change is calculated as ((Close-Open)/Open*100)

109 | MEX NEPAL YEAR BOOK 2017