Posted on 03/04/2022 5:34:34 AM PST by Red Badger
SINGAPORE—Commodity markets extended their bull runs on Thursday, with aluminium, coal and palm oil all hitting new records while crude oil and wheat scaled multi-year highs as Russia’s invasion of Ukraine disrupted global raw material flows.
Russia’s stature as a top supplier in oil, gas, metals, grain and shipping markets has meant that the harsh sanctions applied to several Russian entities following Moscow’s invasion of Ukraine has upended several critical resource supply chains.
Aluminium prices on the London Metal Exchange have gained 30 percent this year, while U.S. wheat futures have surged 25 percent this week alone as markets attempt to price in the impact of a potential loss of Russian supplies if the international community rolls out additional punitive measures against Moscow.
The United States is preparing a sanctions package targeting more Russian oligarchs as well as their companies and assets, two sources familiar with the matter said on Wednesday, as Washington steps up pressure on Russian President Vladimir Putin.
Brent crude oil rose above $118 a barrel for the first time since February 2013 as buyers grappled with financing and shipping issues that have paralysed purchases from the third-largest oil producer this week.
Brent crude futures were trading up 3.4 percent at $116.79 a barrel, as of 0631 GMT.
“Russia’s invasion of Ukraine spells further turmoil for global energy markets already reeling from extreme price volatility over the past two years,” said Sam Reynolds, an energy finance analyst with the Institute for Energy economics and Financial Analysis, (IEEFA).
Australia’s ANZ raised its short-term target for oil to $125 a barrel, adding that supply shortages could see further upside.
In industrial metals, LME aluminium rose 2.3 percent to an all-time high of $3,650 a tonne, while nickel climbed over 4 percent to $26,935 a tonne as traders tried to factor in the loss of supply from the third-largest producer of both metals.
For grains, Russia and Ukraine were projected to account for 28.5 percent of global wheat exports in 2021, according to the U.S. Department of Agriculture, so global wheat prices have jolted higher to try to accommodate a big drop in supplies from both counties.
Chicago wheat futures are up nearly 40 percent in the past month, and have climbed to 14-year highs of $11.34 a bushel.
Russia and Ukraine also account for 19 percent of corn exports and 80 percent of exports of sunflower oil, which competes with soyoil and palm oil.
Malaysian palm oil prices hit record highs of 6,950 ringgit a tonne on Thursday, while U.S. soyoil hit its highest since 2008.
Newcastle coal futures have also been on a blistering run since sanctions were slapped on the third-largest exporter, surging to a record $440 a tonne this week, up 100 from a month ago.
All is going according to the plans. Our leaders expect Americans will be on their knees worshipping our leaders soon
I Always wondered why Brits said Aluminum wrong ;)
I ordered just over $10k worth of aluminum yesterday for a large mold. After I got the quote in I was waiting for another price before committing even though I knew it was going to be higher, but I like to check the differences in suppliers anyways.
I asked him how long the quote was good for, usually it’s 30 days, or it has been for the last 40 years, then 2 years ago it dropped to 5 days, then to 24 hours. His answer yesterday was:
“Until I hang up the phone.”
One of my customers makes skids(big pallets)for Kaiser Aluminum in Spokane.
Business is very good.
FYI, this drives up the price even of the aluminum can. A brewery owner out west said his price per can was going up $.05
So, $1.20/case or $.60/ 12 pack. I have noticed in my grocery store that the 12 packs of beer that used to be $12.99 are now $13.99.
Yep!.................
Russia will be brought to it knees.
Nike just stopped selling its Chinese shoes in Russia!
Al cans at the local scrap yard now get $0.40/lb.
Was $0.30/lb last year.
There is just no possible way that our leaders and the institutions that serve us/them could be so short sighted and ignorant.
It's like the kid that keeps doing stupid shit but claims it's an accident and you got to ask yourself, “you're doing this on purpose, aren't you?”
Milton Freedman has Youtube videos that explain what's happening (any kid can see this), this has happened before in history... and here we are with PhD bureaucrats and politicians with 40 years of experience doing shit where macro economic 101 tells you what bad shit will happen when on this path. But then again, maybe they don't teach that in econ 101 anymore, probably been replaced by some gender and race equity concept.
One thing is for sure. This is 100% on the shoulders of Biden. He set these wheels in motion when he completely ignored the Russians last October and went forward with Ukraine NATO membership - full speed ahead: https://www.reuters.com/world/europe/ukrainian-president-zelenskiy-holding-talks-with-biden-adviser-says-2021-12-09/
Meanwhile Russia and Ukraine, both major global wheat producers, Russia the worlds biggest fertilizer producer, one of the worlds biggest gas, oil and, titanium, platnium... producers will get isolated... Yeah, right. We will see how long this US led stupidity lasts when Brazil, Egypt, Mexico etc. start having food shortages. I wonder, did our senior executive schedules and political appointees, making >$150,000 a year each take into consideration what happens when you run out of food in a country - as they prod everyone along to declare an embargo against Russia?
https://www.newsday.co.zw/2022/03/brazils-bolsonaro-refuses-to-sanction-russia-says-ukrainians-trusted-a-comedian-with-the-fate-of-a-nation/
https://www.reuters.com/world/mexicos-president-says-will-not-take-any-economic-sanctions-against-russia-2022-03-01/
“A brewery owner out west said his price per can was going up $.05”
What’s today’s the price of a can.
Well, English isn’t their first language.
I call it the “US government correction factor.”
Anything they say/claim, you have to either multiply or divide it by 3, 10 or 100 to get to the truth.
For example inflation is x3.
6.8% turns into about ~20%.
Covid deaths/mortality rate (based on original information they provided us) is /100.
20% turns into .2%
That was funny-
Pork belly!
The scrap yard around me won’t pay crap for Alum, like .02 to .05 a pound.
;^)
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