Commodity Prices Hit This Important Mark
A release this morning holds that Commodities prices (NYSE:RJI) have slipped to their lowest levels in six weeks. The drop off was led by falling crude oil (NYSE:USO) and copper costs, which seem correlated to macroeconomic worries over euro zone stability and a possible Greek Default. Oil concerns have simmered down since last week, when a failure among OPEC leaders to reach agreement on production increases at a meeting in Vienna stung markets. Following the meeting though, Saudi Arabia disclosed that it would be willing to raise its oil output significantly, regardless of consensus from fellow cartel members. Today, Saudi Arabian Oil Co., the country’s largest oil exporter, announced that it had reached deals to provide China, India, and Japan with extra oil supplies this year.
In other news on the commodities front, corn inventories are expected to hit their lowest levels in twenty years as ravenous global demand chews up record-harvests. Gold is expected to lead precious metal gainers this week if default concerns with Greece are not addressed. Copper prices were down over 1.0% in the latest commodities inventory, but shed the third most in price, with Tin (-1.5%) and Lead (-1.2%) leading the way.