The latest prices and key trends from the SM Commodities Index.
Palm oil price softened in June largely due to improvements in production. As Southeast Asia heads through its less wet season, oil palm productivity improves. This adds bearish pressure in relation to other vegetable oils. Some of the palm oil price weakness in June reversed briefly in the first week of July, blamed on stronger palm oil export reports for the month of June from inspection service companies and the bullish US soybean reporting on stocks and area from the US Department of Agriculture.
Steel scrap prices are rising as a delayed follow-on to higher iron ore prices in late spring. Ore had upward pressure based on shipping, weather, and mine problems. The increase in ore cost created an incentive to make more steel using scrap. It must be noted that scrap prices are mixed globally. Taiwanese buyers have balked at paying high prices for imports from the US, and some cargos to Turkey had difficulty finding buyers. If the weakness in exports continues, US scrap prices – even domestic – will be under pressure to reverse downward over the third quarter.
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