Foodstuffs: Raw materials: aluminum leaves, gold and cocoa stagnate

Here it is again with corrected shell in the title

London ( / hooly News) – The price of aluminum appreciated this week thanks to a slowdown in production in April but the outlook remains unfavorable for the price.

Reporting the latest figures from the International Aluminum Institute, ING analysts Warren Patterson and Wenyu Yao highlighted global production down 0.6% year on year in April, a breath of fresh air for the prices.

But this production “remains at a high level and still faces low demand,” said Daniel Briesemann of Commerzbank, a gap that inexorably swells stocks.

According to data released Wednesday by the World Bureau of Metals Statistics (WBMS), the aluminum market was in surplus by 709,000 tonnes over the period from January to March 2020, almost as much as over the whole of the year 2019.

“We now expect a surplus of 3 to 6 million tonnes in 2020, and around 3 million tonnes also in 2021,” said Bjarne Schieldrop of SEB.

“The rise in prices remains limited and is expected to approach $ 1,600 per tonne as the world economy picks up,” he added.

On the London Metal Exchange, the ton of aluminum for delivery in three months was trading at $ 1,503.50 Friday at 3:35 p.m. GMT (5:35 p.m. in Paris), against $ 1,462.00 the previous Friday at the close.

Gold caps

Gold ends the week slightly down after reaching a high in seven and a half years at the start of it, boosted by numerous uncertainties.

On Monday, gold rose to 1,765.43 dollars an ounce, a level more seen since October 2012, before falling.

If it ends the week down slightly, “the precious metal is well placed to find support with concerns over global growth, falling interest rates, renewed trade tensions between the United States and the China, and fears of a second wave of coronavirus, “said Lukman Otunuga, analyst for FXTM.

Since gold is considered a safe haven, it tends to appreciate in times of political or economic uncertainty.

The fall in bond yields, which are even moving into negative territory for certain products, also makes the yellow metal, whose yield is zero, more attractive.

On the other hand, the rise in gold is held back by that of the dollar, which is also considered a safe haven.

Since the precious metal is denominated in green notes, an increase in it makes gold more expensive for investors using other currencies.

On the London Bullion Market, an ounce of gold was worth $ 1,732.51 Friday around 3:35 p.m. GMT, against $ 1,743.67 the previous Friday at the close.

Cocoa is waning

Cocoa prices stabilized this week, managing to wipe out the losses of the past few days on Friday. Recently, prices have been penalized by the difficulties encountered “by growing and selling,” said Jack Scoville of Price Group.

“Deliveries are still slowing down,” added the analyst, despite the gradual deconfinement measures implemented by producer and consumer countries.

In addition, the harvest in progress in West Africa “promises to be very good”, enough to further accentuate the imbalance between supply and demand, already unfavorable to prices.

This region of the world is capital for cocoa since Côte d’Ivoire and Ghana together account for more than half of world production.

In London, the ton of CACAO for delivery in December was worth 1,749.00 pounds sterling around 3:40 p.m. GMT, against 1,755.00 pounds sterling the preceding Friday at the close. In New York, the ton for delivery in July was worth $ 2,396.00 at the same time, against $ 2,399.00 seven days earlier.

bp-ktr / bh