Commodities: in the form of nickel balls, gold and candy

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Around 5:30 pm on Friday, a ton of nickel was trading at $35,260 on the LME after hitting $40,700 in the same session.

Nickel prices rose in non-stop trading on Friday after last week’s chaotic rally on the London Metal Exchange (LME).

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“Nickel finally trades and stays open because it finally finds a level…” Marex broker, Al Munro, underlines, adding that it still develops in a mixed manner “in a disastrous liquidity context.”

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“Extreme price fluctuations (…) are driving many investors away from commodity markets, which reduces liquidity and increases price volatility,” said Ipek Ozkardeskaya, analyst at Swissquote bank.

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“Nickel has clearly become the face of this insane volatility,” he continues, as the price of “devil metal” jumped 15% to its cap for the second day in a row on Thursday.

With more than a week of blackout in nickel trading since the frenzied rise in prices to more than $100,000 per tonne on March 8 – since trading was canceled by the LME – the London Metal Exchange is trying to contain the metal’s volatility.

The London Metal Exchange has imposed price action limits that are initially plus or minus 5% and gradually increase to 15%.

Investors were fleeing the market, causing nickel prices to drop to the lower limit within seconds of each opening.

At around 4:30 PM GMT on Friday (5:30 PM in Paris), a ton of nickel was traded at $35,260 on the LME after hitting $40,700 in the same session.

Seven days ago, trading was stopped directly at a price of $31,380 per tonne, then the lower limit set by the LME.

shining gold

The price of gold rose throughout the week amid the uncertainty surrounding the markets with the Russian invasion of Ukraine and pushing investors to the safe haven.

“The yellow metal will continue to be supported given high inflation and overwhelming uncertainty. But that doesn’t necessarily mean we’re headed for the highest historical peaks of 5% higher,” summarizes Oanda analyst Craig Erlam.

“Gold’s gains are currently limited by the Fed’s aggressive rate hike policy,” said FXTM analyst Han Tan.

Expectation of higher rates makes government bonds, which is also a safe haven, more attractive and suppresses investors’ interest in non-yielding gold.

At around 4:30 PM GMT (5:30 PM in Paris), an ounce of gold was finally trading at $1,956.15 versus $1,921.62 a week earlier.

sugar is rising

Sugar prices climbed throughout the week, even reaching a six-year high (QW1 will be controlled) in London amid limited supply in Brazil and strong demand in Russia.

“Once again, these markets are being affected by the price of oil,” says Jack Scoville, an analyst at Price Group.

Russia’s invasion of Ukraine has boosted oil prices amid fears that economic sanctions will reduce Russian supplies.

As a result, farmers in Brazil, the world’s largest cane producer, prefer to convert their harvests to ethanol to take advantage of the high energy cost, reducing the amount of sugar available in the market.

In addition, Commerzbank analyst Carsten Fritsch says, “High sugar demand from Russia explains the recent strength in prices.”

Images of the struggle for sugar in supermarkets are circulating on social networks, and Russians have been flocking to some foodstuffs in recent days for fear of ending.

Some of the population traumatized by the famine of the 1990s are trying to stockpile this widely used product to preserve certain foods.

In New York, a pound of raw sugar for next May delivery was worth 19.63 cents versus 18.93 cents seven days ago.

In London, a ton of white sugar for same month delivery was worth $562.50 versus $536.10 at the close the previous Friday.

Source From: Google News

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