Latest news with #Marex
Business Recorder
18 hours ago
- Business
- Business Recorder
Copper pushes to near three-month peak on weak dollar
LONDON: Copper prices jumped to their highest level in nearly three months on Thursday, propelled by a weak dollar, concerns over supply and buying by speculators after key technical levels were broken. Three-month copper on the London Metal Exchange gained 1.8% to $9,882 a metric ton by 1415 GMT after hitting its strongest level since March 27 at $9,892. 'What is key for us is dollar weakness, and that is trending lower, which is supportive for our space,' said Alastair Munro, senior metals strategist at Marex. The dollar index sank to its lowest level since early 2022 as concerns about the future independence of the US Federal Reserve undermined faith in the soundness of the country's monetary policy. A softer dollar makes commodities priced in the US currency less expensive for buyers using other currencies. The premium for the LME cash copper contract over the three-month contract rebounded to $240 a ton from $101 on Wednesday but down from $280 on Monday, its highest since November 2021. The LME premium for buying copper tomorrow and selling it the day after surged to $98 a ton up from $48.60 per ton on Friday. While traders expect deliveries of copper into LME warehouses to ease a tight situation, they have not yet materialised. 'The market is still positioned short out of July and struggling to find offers this morning,' Munro said. Copper buying was buoyant among Chinese participants, he added, noting that long positions and open interest are rising on the Shanghai Futures Exchange. The most-traded copper contract on ShFE rose 0.6% to 79,000 yuan ($11,022.74) per ton, its highest since June 11. LME copper has held below the $9,800 level for several months and a break above it on Thursday triggered automatic buy orders, a trader said. LME copper has gained 22% since hitting its lowest level since November 2023 at $8,105 in April. US Comex copper futures climbed 3.2% to $5.13 a lb, bringing the premium of Comex over LME copper to $1,425 a ton, its highest since April 28. Higher US copper prices are based on expectations of US tariffs being imposed on the metal, triggering a flow of metal to Comex warehouses. Among other metals, LME aluminium rose 0.5% to $2,577 a ton, lead added 0.5% to $2,041.50, nickel gained 1% to $15,230, zinc climbed 2.2% to $2,764.50, while tin rose 1.4% to $33,640. Zinc hit its highest since May 14, while tin touched its strongest since April 8.
Zawya
a day ago
- Business
- Zawya
Copper pushes to near three-month peak on weak dollar, speculators
Copper prices jumped to their highest in nearly three months on Thursday, propelled by a weak dollar, concerns about supply and buying by speculators after key technical levels were broken. Three-month copper on the London Metal Exchange gained 1.6% to $9,867 a metric ton by 1000 GMT, its strongest since March 28. "What is key for us is dollar weakness and that is trending lower, which is supportive for our space," said Alastair Munro, senior metals strategist at Marex. The dollar index sank to its lowest since early 2022 as concerns about the future independence of the U.S. Federal Reserve undermined faith in the soundness of the country's monetary policy. A softer dollar makes commodities priced in the U.S. currency less expensive for buyers using other currencies. The premium for the LME cash copper contract over the three-month rebounded to $200 a ton from $101 on Wednesday but down from $280 on Monday, its highest since November 2021. While traders expect deliveries of copper into LME warehouses to ease a tight situation, they have not yet materialised. "The market is still positioned short out of July and struggling to find offers this morning," Munro said. Copper buying was buoyant among Chinese participants, he added, noting that long positions and open interest are rising on the Shanghai Futures Exchange. The most-traded copper contract on ShFE rose 0.6% to 79,000 yuan ($11,022.74) per ton, its highest since June 11. LME copper has held below the $9,800 level for several months and a break above there on Thursday triggered automatic buy orders, a trader said. LME copper has gained 22% since hitting its lowest since November 2023 at $8,105 in April. U.S. Comex copper futures climbed 2.7% to $5.05 a lb, bringing the premium of Comex over LME copper to $1,277 a ton, its highest since April 28. Higher U.S. copper prices are based on expectations of U.S. tariffs being imposed on the metal, triggering a flow of metal to Comex warehouses. Among other metals, LME aluminium rose 0.5% to $2,575 a ton, lead gained 0.6% to $2,044, nickel added 0.8% to $15,190, zinc climbed 1.4% to $2,743.5, while tin rose 0.6% to $33,400. ($1 = 7.1670 Chinese yuan ) (Reporting by Eric Onstad Editing by Frances Kerry)
Mint
4 days ago
- Business
- Mint
Soybeans slump on greenhouse weather in US
CHICAGO, - Chicago soybean futures eased on Monday as favorable U.S. crop weather took the focus away from U.S. strikes on Iran conducted over the weekend. November soybeans were down 13-3/4 cents by 11:40 CST at $10.47 per bushel. Chicago corn also fell on weather pressure, and wheat ticked down with an accelerating harvest. Forecasts for the week of July 2 show warm but wet conditions across the U.S. corn belt, said Brian Hoops, president of Midwest Market Solutions. The weather will create "a near greenhouse effect," said Hoops, with benefits for corn and soybean crops. Those advantageous conditions outweighed the earlier impact of oil prices surging after the U.S. targeted Iranian nuclear sites over the weekend. Oil prices fell 1% on Monday after reaching a five-month high as market players assessed the impact on transit of oil and gas via the Strait of Hormuz after the U.S. airstrikes. Soyoil is closely tied to crude oil prices because it is used in biofuel as a substitute for fossil fuel. But, said Karl Setzer, partner at Consus Ag Consulting, "the lack of a weather story on the U.S. crop is more negative right now than any potential blow-up between the U.S. and Iran." September corn slipped 7-1/4 cents to $4.18-1/4 per bushel, having hit contract lows earlier in the session. September wheat was 13 cents weaker at $5.70-1/2 a bushel. And in wheat, U.S. weather conditions in the coming weeks will favor harvesting, said analysts. "Hotter and drier weather is forecast for the winter wheat Plains, which should help advance the winter wheat harvest, with good rains forecast for the spring wheat belt," said Hoops. Conditions will also improve in the Canadian Prairies, added Terry Reilly, senior agricultural strategist at Marex.
Business Recorder
4 days ago
- Business
- Business Recorder
Aluminium hits three-month highs after US airstrikes on Iran
LONDON: Aluminium prices jumped to three-month highs on Monday as U.S. airstrikes on Iran's nuclear facilities raised the prospect of higher energy prices and disruptions to shipments of the metal from the Middle East. Energy can amount to 40-45% of aluminium smelting costs in some regions. Investor fears of an escalation in Middle East conflict and disruption to oil and gas supplies escalated as President Donald Trump warned that the U.S. could attack other targets unless a peace deal can be agreed with Israel. Benchmark aluminium was up 1.3% at $2,584 a metric ton in official rings after touching its highest since March 21 at $2,654.50. 'Middle East countries produce almost 9% of the world's aluminum,' said Alastair Munro, senior base metals strategist at broker Marex. 'If the Strait of Hormuz is blocked, that could affect shipments.' Global supplies will be further disrupted if Iran shuts the Strait of Hormuz, analysts say, because Middle East production relies on imports of aluminium raw materials bauxite and alumina. Elsewhere, the LME market was focused on large holdings of cash copper contracts and warrants - title documents conferring ownership - and premiums for near-term copper contracts. Aluminium outperforms copper on energy cost concerns amid US-Iran tensions LME data shows that one company holds a dominant position of more than 90% in copper warrants and cash contracts. The premium or backwardation for the cash copper contract over the three-month forward soared to $340 a ton on Monday, the highest since October 2022. The premium stood at only $3 a month ago. Part of the problem is the slide in copper inventories in LME-approved warehouses. Much of the copper stored on the LME has been shipped to the U.S., where prices soared after President Trump ordered an investigation into possible tariffs on copper imports. The London exchange responded on Friday by imposing restrictions on holders of large positions in near-term contracts. Three-month copper was up 0.1% at $9,641 a ton, lead rose 0.8% to $2,009, tin slipped 0.2% to $32,615 and nickel retreated 1.5% to $14,785. Zinc, production of which requires large amounts of energy, was up 1.8% at $2,677 a ton.
Zawya
4 days ago
- Business
- Zawya
Aluminium hits three-month highs after US airstrikes on Iran
Aluminium prices jumped to three-month highs on Monday as U.S. airstrikes on Iran's nuclear facilities raised the prospect of higher energy prices and disruptions to shipments of the metal from the Middle East. Energy can amount to 40-45% of aluminium smelting costs in some regions. Investor fears of an escalation in Middle East conflict and disruption to oil and gas supplies escalated as President Donald Trump warned that the U.S. could attack other targets unless a peace deal can be agreed with Israel. Benchmark aluminium was up 0.5% at $2,561 a metric ton by 0916 GMT after touching its highest since March 21 at $2,654.50. "Middle East countries produce almost 9% of the world's aluminum," said Alastair Munro, senior base metals strategist at broker Marex. "If the Strait of Hormuz is blocked, that could affect shipments." Global supplies will be further disrupted if Iran shuts the Strait of Hormuz, analysts say, because Middle East production relies on imports of aluminium raw materials bauxite and alumina. Elsewhere, the LME market was focused on large holdings of cash copper contracts and warrants - title documents conferring ownership - and premiums for near-term copper contracts. LME data shows that one company holds a dominant position of more than 90% <0#LME-WHC> in copper warrants and cash contracts. The premium or backwardation for the cash copper contract over the three-month forward closed at $274 a ton on Friday, the highest since October 2022. The premium stood at only $3 a month ago. Part of the problem is the slide in copper inventories in LME-approved warehouses . Much of the copper stored on the LME has been shipped to the U.S., where prices soared after President Trump ordered an investigation into possible tariffs on copper imports. The London exchange responded on Friday by imposing restrictions on holders of large positions in near-term contracts. Three-month copper was down 0.1% at $9,619 a ton, lead rose 0.4% to $2,000, tin slipped 0.1% to $32,665 and nickel retreated 1.1% to $14,840. Zinc, production of which requires large amounts of energy, was up 1.1% at $2,660 a ton.
