More turmoil in the metals markets, backwardation in zinc stretched to the widest since 1997. That is the premium for spot zinc over futures spiked on Thursday to the 25 plus levels. The move comes from a supply squeeze after inventories slumped this week to the lowest level in at least 25 years. It was only three months ago an unprecedented short squeeze occurred in the nickel market, the LME said it’s monitoring the situation closely. LME suspended nickel trading … Continue reading “Zinc Backwardation Widest Since 1997 With Inventories Lowest Level in Over 25 Years”
LME suspended nickel trading for at least the remainder of the day Tuesday after Nickel prices roughly doubled to all-time highs Tuesday, up 500% from Friday. Nickel soared over $100,000 a ton to an all-time high on the London Metal Exchange when prices surged around $40,000 in just one hour. The move came from a short squeeze with a major Chinese bank where a unit of China Construction Bank Corp. extra time to pay hundreds of millions of dollars in … Continue reading “Nickel Soars 500% on Chinese Bank Short Squeeze, Trading Suspended”
Futures and commodities had a volatile start to 2022. January was about the energy crisis and interest rates and inflation. This pattern accelerated after the Fed minutes of the December FOMC took hold. This was borne out by the best performing futures being natural gas, VIX and Palladium. Energy was five of the highest gains for the month. The worse were lumber, ethanol and the major stock market indices. For the month S&P and Nasdaq have their worst month since … Continue reading “The Energy Crisis and Volatility See Natural Gas and VIX the Best Performing Futures in January”
Aluminum producer Alcoa reported better than expected fourth quarter earnings on Wednesday. Aluminum has seen prices rise 50% yr/yr. AA reporting quarterly records for adjusted net income and adjusted EBITDA. Revenue rose 38% yr/yr, Alcoa’s highest growth rate in over five years. Alcoa Corp NYSE: AA Reported Earnings After Close Wednesday $2.50 Beat $1.93 EPS AND $3.30 Billion Beat $3.30 Billion Forecast in Revenue Earnings Alcoa reported $896 million in Ebitda in line with estimates. Adjusted earnings of $2.50 a share … Continue reading “Soaring Aluminum Prices Boost Alcoa Earnings to Highest Growth Rate in Over Five Years”
Agricultural and energy futures and commodities rose sharply pumped by the reopening of economies in 2021 with the Covid -19 knock ons running roughshod over supply routes and employment. The biggest losers were last year’s winners, safe haven elements such as the VIX, treasuries and foodstuffs. Oat Futures closed up 89.74% this year. back in October the United Nations index shows that global food prices recently hit a decade high, oat futures hit an all-time high of $6.36 a bushel … Continue reading “Oats, Coffee, Canola and Lumber Pip Energy as Best Performing Futures in 2022”
Futures and commodities contined to be volatile in October of 2021 as energy markets ran roughshod. The biggest gainers were safehaven elements such as precious metals silver, platinum and palladium along with foodstuffs such as grains. The weakest was VIX as you would expect with US stock indices at record highs
Aluminum producer Alcoa reported better than expected third quarter earnings on Thursday. $AA profits boosted by aluminum prices rising 64% yr/yr and 13% sequentially with the commodity squeeze and a recovering global economy. AA increased buybacks program and declared its first-ever dividend.
Aluminum futures prices soared to their highest in more than a decade after a coup in Guinea fueled concerns over Bauxite feedstock supplies. China gets half of it’s supplies from Guinea and is already struggling with output. A worker at a production line of Nannan Aluminum Co Ltd in Nanning, China via China Daily In an already volatile commodity space aluminum hit the highest prices in over ten years as a political coup in Guinea put Bauxite exports under threat, … Continue reading “Aluminum Prices Soar to Ten Year Highs After Guinea Coup Strangles Bauxite Supplies”
Three months can be an eternity and that is what it was for energy futures in particular. Futures and commodities were hit violently in the first quarter of 2020 with the black swan Covid -19 running roughshod. In Q2 bounces in equity and energy markets were spectacular.
The US consumer credit outstanding in February came in at +$22.33 billion much higher than the +$14.0 billion expected and from the +$12.02 billion last month. This was before the economic shutdown to the economy.