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Global Economy Unfavorable for Commodities, Soybeans & Iron Ore Hurt

November 22, 2011 at 9:32 by Vladimir Vyun

The developments in the global economy continue to put downward pressure on commodities. As a result, soybeans touched the lowest level in 13 months today, while iron ore is expected to follow other commodities in decline.

The members of the US congressional debt-reducing supercommittee failed to reach agreement about budget cuts. Germany’s Finance Ministry admitted that the country’s economic growth became “noticeably slower”.

China may increase its imports of soybeans, supporting prices, but for now the negative fundamentals have upper hand. As for iron ore, even China isn’t going to support the commodity as demand in the Asian nation wanes.

Soybean settlement was at $11.5025 per bushel as of 9:24 GMT today on CBoT after falling yesterday from $11.7100 to $11.4575 per bushel and touching today $11.4100 per bushel — the lowest level since October 8, 2010.

Spot price for ore climbed to $147.40 per metric ton yesterday. Prices were up 24 percent this month, while ore dropped 31 percent in October and analysts predict it’ll resume its decline next month.

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

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