Commodities: Stronger with the improved odds of a Hillary Clinton victory – ANZ

Research Team at ANZ, suggests that the commodities were stronger overnight as the improved odds of a Hillary Clinton victory raised risk appetite.

Key Quotes

• “The improved risk appetite in markets saw gold head lower. However, the industrial-focused precious metals such as platinum and palladium bucked the trend and moved higher.

• Crude oil prices bounced off key support levels as investors piled back into the energy sector. Sentiment was helped by news that Russia was ‘on board’ with an OPEC agreement to limit production to help rebalance the market.

• Industrial metals were also swept up in the wave of buying, with nickel prices leading the gains. Violent protests in Indonesia have raised concerns that supply of nickel (and other commodities) could be under threat of disruption. The improved economic data out of China also continues to support industrial metals demand.

• Iron ore surged higher on the back of higher steel and iron ore futures in China. Iron ore exports from Port Hedland jumped 14% y/y to 41.6 million tonnes, reflecting strong demand in China.

• Agriculture markets were mixed, with a stronger Brazilian real helping push sugar prices to a one month high. Wheat prices fell after reports of better crops in Russia and Brazil.”

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