Fitch ratings has issued its latest ratings report on Australia, affirming Australia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘AAA’ with a Stable Outlook. Australia’s growth pre-pandemic was one of the strongest in the developed world. and it has recovered from the Pandemic strongly than most with a strong trade surplus. Australia saw a rapid rise in the working age population with fast net immigration accounting for over half of the expansion pre-pandemic help fuel the strength. Key Ratings Drivers … Continue reading “Fitch Ratings Affirmed Australia’s ‘AAA’ With a Stable Outlook”
FAO World Food Price Index Fell in March for Twelfth Consecutive Month
World food prices as measured by the FAO Food Price Index continued to fall, down for a 12th month to 126.9 points in March 2023, the lowest level since July 2021, and down 20.5% from the record hit in March 2022 after Russia invaded Ukraine. Sugar prices again were the anomaly, up 1.5% hitting its highest level since October 2016 amid concerns over lower global availabilities for both food and as a biofuel component. Meat prices rose 0.8%, namely bovine … Continue reading “FAO World Food Price Index Fell in March for Twelfth Consecutive Month”
FAO World Food Price Index Fell in February for Eleventh Consecutive Month
Food prices continue to fall after they were almost vertical after Russia invaded Ukraine. World food prices as measured by the FAO Food Price Index fell for the eleventh consecutive month in February. The index fell to 129.8 points in February 2023, down 18.7 percent from the record high 159.7 from March 2022. Sugar prices were the anomaly, they surged 6.9 percent, reaching the highest level since February 2017. FAO Food Price Index Highlights » The FAO Food Price Index* (FFPI) averaged … Continue reading “FAO World Food Price Index Fell in February for Eleventh Consecutive Month”
Five Factors in a Constructive Strategy for Investing in Commodities
Investing in commodities is something that needs to be done within a constructive strategy to understands risks and opportunity. There are many factors to consider individually depending on one’s access, location and financial position. Five factors to consider are monitoring the market, monitoring supply and demand dynamics, diversification, long-term focus and dollar cost averaging. Constructive Strategy Investing in Commodities Could Include: 1. Monitoring the market: Stay up to date on the latest market developments and adjust your investment strategy as … Continue reading “Five Factors in a Constructive Strategy for Investing in Commodities”
Standard & Poor’s Affirm Australia’s AAA Rating with a Stable Outlook.
The ratings agency S&P Global Ratings reaffirmed its AAA long-term sovereign credit rating and A-1+ short-term rating for Australia. S&P issued a note saying Australia should avoid a recession amid record low unemployment and elevated commodity prices, even as the economy slows this year amid higher interest rates. The RBA is expected to announce another 25 basis point increase in the official cash rate after its board meeting next Tuesday. S&P said Australia’s ratings were supported by “strong institutions, which … Continue reading “Standard & Poor’s Affirm Australia’s AAA Rating with a Stable Outlook.”
Alcoa Reports Another Quarterly Loss with Falling Aluminum Prices and Pressured Margins
The largest US Aluminum producer Alcoa reported a second consecutive quarterly loss as expected for the fourth quarter on Wednesday but missed on revenue. The company has been squeezed by higher energy and raw material costs and restructuring charges putting pressure on margins. $AA projects 2023 total alumina shipments of 12.7-12.9 million metric tons and aluminum shipments between 2.5-2.6 million metric tons. $AA traded down 5.5% after the release. Aluminum is down roughly 40% from a record high of approximately $4,000 … Continue reading “Alcoa Reports Another Quarterly Loss with Falling Aluminum Prices and Pressured Margins”
Wheat Ends Volatile Year Up 1%, down 62% From Invasion Highs
Chicago wheat futures ended a volatile 2022 up 1.44% above the $7.7 per bushel level with all 3 wheat classes closing out 2022 with solid gains, highlighted by uncertain supply from major producers offsetting lower demand in the global economy. Wheat was still flat on the year despite pulling back 61.8% from the panic highs after the invasion. Russia’s invasion of Ukraine in the end of February triggered a supply halt from the key exporter, while lifting natural gas prices … Continue reading “Wheat Ends Volatile Year Up 1%, down 62% From Invasion Highs”
Silver Survives Volatile Year to Close Year 2% Higher
Silver futures prices hovered above $24 per ounce after breaking out of its downtrend in the last month to end a volatile 2022 up 2.3% $24.04 an ounce. Gold also rebounded from its lows; the catalyst was the retreat of the rampant US dollar. Prices were supported by increased demand for precious metals amid recession concerns and looming supply shortages. Geopolitical risks triggered by the Russian invasion of Ukraine ramped up demand for bullion prices but pulled back until the … Continue reading “Silver Survives Volatile Year to Close Year 2% Higher”
Wheat Futures Hampered by Strong US Dollar Pricing Out Exports
A rough week for wheat futures, closing the week down 2.41%. The high US dollar is weighing on “reduced supplies, slow pace of export sales, and continued uncompetitive U.S. export prices”. On Friday all wheat basis front month contracts closed lower. SRW December down 21 1/2 cents for the week loss. KC Dec futures closed down 23 1/4 cent for the week. Spring Dec wheat futures closed down by 16 1/2 cents on the week. Weakness continued from the USDA … Continue reading “Wheat Futures Hampered by Strong US Dollar Pricing Out Exports”
Corn Futures Steady as Harvest Season Winds Down
Corn prices corn prices down just 0.66% as harvest winds down and farmer selling slows. The European Commission reduced their corn crop outlook by another 600k MT to 54.9 MMT to 25% lower yr/yr with imports 1 MMT higher to 22 MMT. The summer’s historic heat wave has crushed the crop from France to Ukraine. Mexico’s agriculture ministry has indicated that the country’s 2014 ban on genetically modified corn would not be amended. Mexico’s U.S. imports could be cut in … Continue reading “Corn Futures Steady as Harvest Season Winds Down”