SOYB - Commodity Roundup: Metals oil fall; global commodity open interest value slips

2023-09-26 05:53:38 ET

Gold prices ticked lower on Tuesday, on its way to a third consecutive session of losses, as market participants awaited further policy cues from the closely watched U.S. personal consumption expenditures data this week and remarks by Federal Reserve policymakers.

The U.S. dollar meanwhile held firm, heaping pressure on gold, on signs of more policy tightening ahead.

The estimated value of open interest across global commodity markets fell week-on-week for the first time in a month, declining by $8.8 billion (-0.7%) WOW as drops across metals, agriculture and petroleum products were only partially offset by an increase in environmental markets and crude oil, JPM said in a note.

"Nonetheless, global commodity markets continued to absorb inflows of some $7.5 billion WOW, the third consecutive week of inflows, bringing YTD cumulative inflows to just shy of $249 billion."

Brent crude prices fell for a fourth-straight session, in part hurt by economic fears as central banks fight inflation with higher interest rates, which could dent demand.

In the agricultural markets on the other hand, cocoa, wheat and soybeans futures gained.

Markets also kept a close watch on the possibilities of a US government shutdown, which Moody's Investors Service said would be "credit negative" for the sovereign rating of the largest economy in the world.

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