Commodities: Prices were mixed - ANZ

Research Team at ANZ, notes that the commodity prices were mixed overnight, with energy markets weaker while industrial metals climbed amid a weaker USD environment.

Key Quotes

“Crude oil prices laboured under the weight of various OPEC members seeking exemption from the production cut agreement. The issue is revolving around production data, with Iraq disputing the OPEC figures that has the nation’s output at 4.2mb/d, compared to its estimate of 4.7mb/d.

Base metals were all higher after data showed European manufacturing activity accelerated. Prices were also supported by Chinese commodity trade data, which showed copper imports climbed 4.6% in September. Iron ore was also higher, driven by another strong rise in futures markets in China. Low inventories at steel mills continue to drive restocking activity.

Agriculture markets were mixed, with soybeans climbing on the back of further falls in inventories in the US. However, corn and wheat were heavily sold on profit taking.”