Commodities, Energy, Metals and Agro

Energy

US rig count: Latest data from Baker Hughes continues to show an increase in the oil rig count in the US. As of 6th January total oil rigs stood at 529, the highest number in just over a year. Meanwhile the gas rig count stands at 135, levels not seen since January 2016.

Nigeria oil disruptions: There are reports that Nigerian militants in the Niger Delta are preparing for further attacks on oil infrastructure in the region. The militant group had previously declared a ceasefire to allow negotiations, but appear frustrated with the lack of progress. Nigerian oil output has suffered over the last year with a wave of attacks, production in the country has fallen from over 2MMbbls/d at the beginning of the year to under 1.5MMbbls/d in December.

Metals

Brazilian bauxite exports: Data from the Brazilian foreign trade ministry shows that the country exported a total of 10.45m tonnes of bauxite over 2016, a 11.5% increase YoY. 4.9m tonnes of this bauxite was shipped to China, up considerably from the 1.8m tonnes shipped in 2015. This stronger flow highlights the issues that China has had in securing regional bauxite supply over 2016, with Malaysia having banned bauxite mining.

LME copper inventory: Having peaked at almost 350,000 tonnes in midDecember, LME copper stocks have declined to around 295,000 tonnes currently. A large part of this drawdown has been seen in Asia, where current LME copper inventories stand at around 175,000 tonnes.

Agriculture

Global coffee exports: World coffee exports over November 2016 totalled 9.94m bags, up from 8.74m bags in November 2015 according to the International Coffee Organisation. So far in the 2016/17 season (starting October 2016), cumulative exports stand at 19.52m bags, an increase of 8.5% YoY.

US soybean exports: Poor US soybean export sales over the week weighed on soybean prices. Export sales were the worst seen this season, coming in at just 87,500 tonnes, after a 900,000 tonne cancellation. The market was expecting a figure of between 0.8-1.2m tonnes.