Commodities

                    Energy

  • Specs reduce WTI net long: Having held a record net long of 379,927 lots previously, speculators over the last week reduced their long by 20,540 lots to leave them with a net long of 359,387 lots. A further build in US crude inventories, along with US production creeping higher could see further liquidation by specs. Although OPEC and non-OPEC production cuts are a counterbalance to this. 
  • US oil rig count: According to Baker Hughes data, it has been another week where US producers have added to the rig count, rigs increased by 8 over the week to total 591. This is the highest number of active rigs since October 2015. 

Metals

  • Indonesia copper output: Copper miner Freeport-McMoRan has suspended production of copper concentrate at its Grasberg mine in Indonesia. The miner has not been able to export since 12th January 2017, and needs to apply for an export permit. As a result of not exporting, storage is full. 
  • Chinese iron ore imports: Strong Chinese imports continue to support iron ore prices, which traded to the highest levels seen since 2014 last week. However robust imports have seen inventories in the country build to record levels. As of the end of last week total iron ore port inventories in China totalled almost 127m tonnes, up from around 80m tonnes in September 2015. 

Agriculture

  • Russian sugar output: Over the 2016/17 season, Russian sugar production is expected to reach a record 6.1m tonnes, which has seen the country become a more important exporter. Expectations moving forward is for production to grow further. The head of Ros Agro says output could reach 6.3m tonnes in the upcoming 2017/18 season. 
  • Ivory Coast cocoa exports: According to reports, local cocoa exporters in the Ivory Coast are unable to fulfil about 350,000 tonnes of contracted exports. These local exporters have come under pressure with falling cocoa prices, defaulting on these contracts would see the industry regulator in the country having to re-auction this cocoa for export. However someone will have to bear the loss, given that the cocoa will have to be re-auctioned at lower prices.