EUROPEAN COMMODITIES UPDATE: Relatively contained trade ahead of corporate updates and Fed speak

Analysis details (10:45)

• The crude benchmarks are on course to conclude the week towards the top-end of a USD 73.47-79.16/bbl range in WTI Feb’23, the peak of which occurred in the run up to Thursday’s US CPI print. Newsflow for the session thus far has been minimal, both in terms of crude specifics and broader macro drivers, as participants await further insight from Fed speakers post-inflation for more insight into a 25bp hike in February and then possibly for the Fed to consider pausing at their next gathering.


• The only crude-specific headline this far has emanated from China, with the Commerce Ministry maintaining the non-state firm's fuel import quota at 16.1mln/T for 2023.


• Elsewhere, China’s Agricultural ministry has given safety approval to additional imported GMO crops, which include a Brazilian sugar cane and a BASF glyphosate-resistance cotton variety.


• Moving to metals, spot gold remains above the USD 1900/oz mark, after reclaiming the figure for the first time since May 2022 in the post-CPI market action. Thus far, the yellow metal has essentially matched the May 2022 peak of USD 1909/oz with some way to go before the prior month’s USD 1934/oz best. Separately, base metals are little changed in-fitting with the broader tone as we await the afternoon’s events and corporate guidance, with LME Copper currently pivoting the USD 9.2k mark.

13 Jan 2023 - 10:40- MetalsEU Research- Source: Newsquawk