Commodity Blog

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, and soft commodities


End of Yuan’s Peg Bolstered Copper & Soybeans, Sugar Rises

June 21, 2010 at 23:48 by Vladimir Vyun

Copper gained on expectations that demand will rise after China, the largest consumer of the metal in the world, signaled that it might end yuan’s peg to dollar. Strong currency will allow more imports for China, including base metals, mainly nickel and copper. September futures for copper delivery gained $0.058 (2 percent) to $2.9595 per pound on COMEX.

Another commodity benefiting from the expected end of yuan’s peg was soybeans as increasing China’s purchasing power would allow the nation to buy more U.S. crops. China bought 120,000 metric tons of soybeans from U.S. exporters for delivery before August 31st. November futures for soybean delivery added $0.085 (0.9 percent) to $9.39 per bushel on CBoT.

Sugar futures gained on speculation that global demand will rise, spurring importers to increase their purchases. Philippines plans to import 100,000 metric tons of the sweetener over the next two weeks, while Egypt expected to purchase at least 50,000 tons of raw sugar. October delivery for raw sugar rose $0.0058 (3.8 percent) to $0.1596 per pound on ICE.

If you have any questions and comments on the commodities today, use the form below to reply.

Leave a Reply