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Last Updated : 17 November 2012 at 11:15 IST

Quick recap: Global Commodities and the week that has past

Source :Barclays research

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Base metals prices were generally unchanged but aluminium and zinc rose to one-month highs on confirmation that China’s State Reserve Bureau this week undertook a first stockpiling purchase of close to 100Kt of each metal, marking the first public SRB base metals purchase since early 2009.

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  • LONDON (Commodity Online): Crude oil prices moved higher with Wednesday’s strike by Israel on Gaza bringing geopolitical risks in the region back to the spotlight while the week also saw the front month WTI – Brent differential achieve a fresh yearly high above $25/bbl.

    Gold prices were weighed by a risk off environment this week but concerns over the fiscal cliff in the US coupled with rising geopolitical tensions are likely to support interest in the metal.

    Base metals prices were generally unchanged but aluminium and zinc rose to one-month highs on confirmation that China’s State Reserve Bureau this week undertook a first stockpiling purchase of close to 100Kt of each metal, marking the first public SRB base metals purchase since early 2009.

    While the market has reacted positively, at least initially in terms of aluminium and zinc prices, the move to stockpile has to be put in the context of both metals being in large surpluses and producers in need of financial subsidies without which they would face closure.

    The November WASDE is negative for soybeans; heralds no big change for grains and underscores a bearish cotton outlook.

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