IKAR in Mass and Industry Media

Commodities Update — Gold edges up; Copper falls; Russian wheat prices down

Reuters

RIYADH: Gold prices rose marginally on Tuesday, buoyed by economic growth concerns, although an elevated dollar and impending interest rate hikes kept gains in check.

Harvester working in a wheat field at sunset in the Krasnodar territory of Russia (Shutterstock)

Spot gold was up 0.1 percent to $1,810.45 per ounce at 0501 GMT. US gold futures gained 0.6 percent to $1,812.20.

Silver gains

Spot silver gained 1 percent to $20.16 per ounce, while platinum fell 0.4 percent to $882.50.

Palladium climbed 1.1 percent to $1,943.16.

Copper down

Copper prices extended a decline on Tuesday to a 17-month low as a cocktail of factors from aggressive interest rates, a spike in COVID-19 cases in China, potential recession, and rising inventories weighed on investor sentiment.

Three-month copper on the London Metal Exchange dropped 1.5 percent to $7,888 a ton, as of 0719 GMT, its lowest since February 2021 and down for a fourth straight session.

The most-traded August copper contract in Shanghai ended daytime trading down 1.9 percent to $8,975.66 a ton by midday.

Russian wheat prices down as new crop arrives

Russian wheat export prices fell last week due to pressure from the new crop, which farmers have just started harvesting, a reduced export tax and a decline in Chicago prices, analysts said on Monday.

Sanctions-hit Russia reduced its grain exports taxes sharply last week to support shipments in the July-June marketing season.

Prices for the new wheat crop with 12.5 percent protein content and for supply from Black Sea ports fell by $25 to $375 per ton free on board at the end of last week, the IKAR agriculture consultancy said.

Sovecon, another consultancy, said wheat prices for supply in July-August were at $375-385 per ton compared to $390-$400 a week ago.

Russia exported 250,000 tons of grain last week compared with 500,000 tons a week earlier, Sovecon said, citing data from ports.

08.07.22

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