Oil Through the Looking Glass 8/6/20

Cuts and Imports It must be music to the ears of all oil producers: the oil guzzling Chinese mainland has increased their crude imports to all-time highs. Low prices have drawn Chinese buyers to boost imports, with purchases rising to 11.3 million bpd in May. If you throw in the news of the one-month extension …

DCE rises over Vale’s supply woe

Chinese futures rose further over supply concerns as Vale was ordered to suspend its Itabira mine amid coronavirus pandemic. Thus, the most-actively traded iron ore futures on the Dalian Commodity Exchange (DCE), for September delivery, jumped up by 5.53% day-on-day to RMB 783 per tonne on Monday. However, the steel rebar contract on the Shanghai …

Soy rises on China hopes but long term doubts remain

US domestic Soy prices have produced their highest close in nine weeks and their highest weekly percentage increase since March 27th.     The price increase is on the back of continued purchases of U.S. agricultural products by China. Committed to over 50 billion tonnes of purchases, China has come under fire for sourcing Soy …

Capesize rates continue the good run on firmer iron ore demand

Capesize rates buoyed on good physical fixture with healthy shipping demand out of both basins. Thus, the Capesize 5 time charter average spiked sharply by $1,130 day-on-day to $7,307 on Friday, after a solid gain that lifted the curve to weeks highs. Following the Capesize rally, the Baltic Dry Index (BDI) also surged further to …

Iron Ore DCE September Daily Technical Review Jun 8th(Hourly Chart from May 18th to Jun 8th)

Verdict – Short-term consolidation. DCE iron ore jumped up at 798.0 yuan only 3 yuan from limit up however correct back significantly by last hour and closed at 783.0 yuan. From hourly chart slow stochastic narrowed and potentially create dead cross near overbought area. Hourly level CCI correct from high area. Technical signals are indicating …