Written Commentary
Ag Market View for Dec 13.24
December 13, 2024
COPPER
December copper futures fell under $4.10 per pound on Friday, continuing their decline from the previous session as the U.S. dollar strengthened. Gains in the greenback were fueled by expectations that U.S. President-elect Donald Trump’s policies, regarding tariffs, immigration and taxes, could Increase inflation levels and limit the Federal Reserve’s ability to reduce borrowing costs.
Additionally, there are concerns about insufficient stimulus measures from China, which dampened the demand outlook. China is the world’s largest copper consumer.
Copper spot treatment and refining charges in China showed signs of improvement as smelters reduced production after several years of increased growth. Copper inventories in China have been declining, and are now below August levels.
GOLD
December gold futures advanced for the fifth consecutive day and are on track for nearly a 5.0% weekly increase. This rally comes as investors placed funds into safe-haven assets in light of growing geopolitical tensions.
SILVER
December silver futures are higher today but remain in a tight four-day trading range, after on Monday breaking out to the upside from a steep downtrend line. Demand for safe-haven assets increased this week due to rising tensions in the Ukraine-Russia conflict. At the same time, investors continued to evaluate the U.S. Federal Reserve’s monetary policy, influenced by recent economic data and central bank statements. There appears to be headwinds on the demand front in light of weaker PMI reports in Europe this week.
In China, the People’s Bank of China kept key lending rates steady this week, as expected, providing no new indications that could influence demand in the world’s largest metal consumer.
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