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3 Mar 2014
Commodities: Markets surge on Russia-Ukraine supply concerns
FXStreet (London) - We’ve seen a broad surge in commodity prices as escalating tensions in the Ukraine and Russia ramp up supply concerns.
Over the weekend, Russia seized the Crimean peninsular in a bloodless manoeuvre, following uprisings in the Ukraine and the toppling of Russia-backed Viktor Yanukovych as Ukrainian president.
More than half of Russia’s gas exports are pipelined through the Ukraine. The country is also the world’s third-largest corn exporter and the sixth largest exporter of wheat.
Commodity markets are a sea of green on the Russia-Ukraine tensions, with the exception of industrial metals on ongoing Chinese demand concerns.
Corn contracts for May delivery are up 3.83 percent to USD481.25/bu while May wheat contracts are up 5.35 percent to USD 634.50/bu.
April natural gas is up 2.08 percent, adding to rallies driven by increased demand on below-normal US temperatures. European Brent contracts for April delivery have climbed 2.10 percent to USD111.36.barrel, while US contracts haven’t escaped the upside pressure, with WIT for April delivery up 1.70 percent to USD104.33/barrel.
Gold is in strong demand as a haven asset, gaining 1.36 percent to a current spot price of USD1,344.44/oz – a four-moth high. The precious metal continues its strong rally since the beginning of 2014. Gold saw its biggest decline since 1982 last year, when it shed 28 percent, however it has gained 12 percent so far this year.
Silver has also gained on haven demand, with May contracts up 1.17 percent to USD21.49/oz. Platinum spot prices are up 0.33 percent to USD1,451/oz.
Over the weekend, Russia seized the Crimean peninsular in a bloodless manoeuvre, following uprisings in the Ukraine and the toppling of Russia-backed Viktor Yanukovych as Ukrainian president.
More than half of Russia’s gas exports are pipelined through the Ukraine. The country is also the world’s third-largest corn exporter and the sixth largest exporter of wheat.
Commodity markets are a sea of green on the Russia-Ukraine tensions, with the exception of industrial metals on ongoing Chinese demand concerns.
Corn contracts for May delivery are up 3.83 percent to USD481.25/bu while May wheat contracts are up 5.35 percent to USD 634.50/bu.
April natural gas is up 2.08 percent, adding to rallies driven by increased demand on below-normal US temperatures. European Brent contracts for April delivery have climbed 2.10 percent to USD111.36.barrel, while US contracts haven’t escaped the upside pressure, with WIT for April delivery up 1.70 percent to USD104.33/barrel.
Gold is in strong demand as a haven asset, gaining 1.36 percent to a current spot price of USD1,344.44/oz – a four-moth high. The precious metal continues its strong rally since the beginning of 2014. Gold saw its biggest decline since 1982 last year, when it shed 28 percent, however it has gained 12 percent so far this year.
Silver has also gained on haven demand, with May contracts up 1.17 percent to USD21.49/oz. Platinum spot prices are up 0.33 percent to USD1,451/oz.