Commodities: Mixed performance - ANZ

Analysts at ANZ explain that commodities were mixed in the previous session, with oil and coking coal stronger on the day, but iron ore and base metals weaker.

Key Quotes

“Crude oil prices were firmer as oil investors shrugged off rising US supplies and looked forward to the summer driving season.”

“Base metals were weaker. Aluminium (-2.1%) and zinc (-2.4%) saw the heaviest losses, while copper (-1.4%) and nickel (-0.7%) were also down.  Despite the weakness, we still see the outlook for copper as positive, with inventories declining across Shanghai, London and New York.”

“Iron ore prices continued their decline, falling 1% to USD74.71, well down from the USD94.86 high reached in February, as markets worried about tighter Chinese monetary policy, steel consumption and mine expansion in Brazil.”

“Coking coal rose again, reaching USD300 with disruptions in Queensland exports continuing to drive prices higher. We continue to expect prices to revert to more sustainable levels once supply comes back on-stream.”

“Gold prices were broadly unchanged after trading lower through the session. Concerns over Federal Reserve interest rate rises and Chinese gold reserves kept a cap on the metal.”