The latest prices and key trends from the SM Commodities Index.
Nickel prices, according to the London Metal Exchange, bottomed out in late March and increased throughout most of April. The recovery was driven by a combination of improving demand in China and production curtailments and supply disruptions around the world due to the Covid-19 outbreak. IHS Markit forecasts nickel prices will move erratically sideways around $12,000/mt over the rest of the second quarter before strengthening over the second half of the year as market fundamentals tighten.
The US long grain balance sheet remains tight but fears regarding Covid-19 continue to impact futures. IHS Markit forecasts sideways to higher trading nearby with wide price ranges as volatility and uncertainty cloud the market. Thai rice price has jumped significantly as fears surround further export limitations from the major exporting nations. Indian rice traders have begun signing new export sales contracts, but Covid-19 lockdowns still remained in place at the beginning of May.
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