Page 94 - MEX-Yearbook-2017

MEX Almanac

May 2017

Precious Metals further plunge. This accounted for the monthly plunge of 5.61 percent in the
Gold was steady near the 4-week highs with geopolitical worries after rising commodity’s price.
almost 1 percent in the previous session. Political tensions surrounding U.S.
President Donald Trump provided some safe-haven support for gold. Gold Brent Crude Open Close % Change
futures ended the monthly session with a slight increase of 0.14 percent Crude Oil 5,191.00 5,029.00 -3.12%
in May. Silver also showed a steady performance only to end the monthly Heating Oil 4,915.00 4,834.00 -1.65%
session 0.31 percent up. South Africa’s platinum output grinded lower as Natural Gas 39.78 40.09 0.78%
producers cut capital expenditure and shuttered unprofitable areas, but it did 324.50 306.30 -5.61%
not happen fast enough to tackle the industry’s bigger problem - rock-bottom
prices for the metal itself. The futures price of the precious metal increased a Agro
modest 0.21 percent in May. Unlike other precious metals, palladium futures Cocoa prices soared amid signs of tighter supplies in Ivory Coast, the
price dipped 0.70 percent in May. Platinum typically trades at a premium to world’s top grower, raising prospects that chocolate costs will climb. July
palladium. Over the past 20-years, this premium has averaged $555. Because futures jumped as much as 11.6 percent over the month, the most ever for
the premium of platinum over palladium was decreasing significantly, some the contract. The outlook for tighter supplies marked a shift for the market
in the industry even said platinum prices might drift below those of palladium that’s been suffering from a global surplus. Coffee futures dipped 3.79
for the first time in 15 years. percent amid concerns about decreasing coffee output due to unfavorable
weather conditions in Kenya. South Africa forecasted a record corn harvest
Gold Open Close % Change this year as improved rainfall boosted yields helped farmers recover from the
Silver 40,802.50 40,860.00 0.14% worst drought since the records began. Its futures price, however, ended on
Platinum 554.00 555.70 0.31% a positive note to post meager 0.14 percent increase over the month. Cotton
Palladium 30,465.00 30,530.00 0.21% prices extended the rally to the highest since June 2014 amid buoyant demand
26,523.00 26,338.00 -0.70% for U.S. exports and signs of a squeeze on July futures. Bullish options jumped
for the second straight session as volume surged. Exports from the U.S. and
Base Metals Brazil, the world’s largest growers, are the highest ever for this time of the
Another surge in copper stockpiles tracked by the world’s top base-metals year and the demand was poised to eclipse earlier government forecasts for a
bourse reignited concerns about demand for the material that’s often viewed record this season. Sugar futures price decreased by 8.04 percent in May amid
by investors as a bellwether for the global economy. A 40 percent jump in demand shocks. Plummeting demand in top consumer India and prospects
inventories monitored by the London Metal Exchange in just three days came of more European supply helped shift the sugar market to a surplus, hurting
amid concerns about China’s slowing industrial activity. Prices of copper prices. The U.S. and Russia engaged in a rivalry for dominance once again,
referred to as the metal with a Ph.D. in economics, traded low and posted this time in the wheat market. After Russia recently pulled ahead, the U.S.
-0.63 percent change in the month of May. fought back, with the help of a weaker dollar. The US took market share partly
amid the FBI investigation into ties between President Donald Trump’s aides
Copper Open Close % Change and Russia. The probe weakened the greenback and made American grain
572.70 569.10 -0.63% cheaper for overseas buyers. Wheat ended the month with 2.23 percent dip in
its price. Inventories of soybean are piled up to record levels this year after
Energy farmers around the world produced more to make up for lower prices with
Crude oil closed 1.65 percent lower as the Saudi Arabian-led group and larger volume. Soybean and Soybean Oil both posted price decrease in May.
its allies delivered only what had already been telegraphed for days: an
agreement to extend output cuts for nine months, without deepening them or Cocoa Open Close % Change
saying what will happen after March 2018. Earlier in May, oil had rebounded Coffee 182.70 203.90 11.60%
from its plunge below $44 a barrel as U.S. stockpiles - one of the most critical Corn 295.40 284.20 -3.79%
indicators of the global supply glut - had fallen for the past seven weeks. Cotton 14.60 14.62 0.14%
Brent crude, the international benchmark, fell to a five-month low in the third Soybean Oil 173.66 169.70 -2.28%
week amid doubts about the effectiveness of OPEC and Russia’s joint supply Soybean 70.32 69.00 -1.88%
curbs. Heating oil futures price was steady to end the session with 0.78 percent Sugar 35.24 33.65 -4.51%
increase in price. This year’s biggest gyrations in U.S. natural gas prices can Wheat 35.58 32.72 -8.04%
be chalked up to a single pipeline. Gas futures surged to a 14-week high on 16.12 15.76 -2.23%
May 10 after a regulatory setback prompted speculation that the project would
be delayed, keeping supplies from reaching those markets. Mild weather The figures above are the percentage change in the prices of corresponding commodity over the
brought the bears out to play as July natural gas futures reaffirmed dive by a corresponding month. % change is calculated as ((Close-Open)/Open*100)

93 | MEX NEPAL YEAR BOOK 2017