Commodities Week in Review: December 28 to January 1

Andrew Moran January 2, 2021 Commodity Blog

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Summary:
Commodities Week in Review: December 28 to January 1 Agriculture Despite being relatively quiet in the broader financial markets, agricultural commodities continued to end 2020 on a high note, adding to their annual totals. The commodities market has had its best yearly performance in about six years, thanks to a mix of a weakening US dollar, strong fundamentals, and a coronavirus pandemic that has enhanced demand. The consensus is that agriculture will have an even stronger 2021 due to rising price inflation. Cocoa Thursday Settlement: -.00, or 0.23%, to ,597 per metric ton Weekly Performance:-0.08% 2020 Performance: +2.32% Coffee Thursday Settlement: -%excerpt%.0095, or 0.74%, to .273 per pound Weekly Performance: +0.91% 2020 Performance: -1.43% Corn Thursday Settlement:

Topics:
Andrew Moran considers the following as important: Bitcoin, Cocoa, Coffee, copper, corn, Cotton, Gold, natural gas, oil, Orange Juice, Palladium, Platinum, rice, Silver, soybean, steel, sugar, wheat

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Commodities Week in Review: December 28 to January 1

Agriculture

Despite being relatively quiet in the broader financial markets, agricultural commodities continued to end 2020 on a high note, adding to their annual totals. The commodities market has had its best yearly performance in about six years, thanks to a mix of a weakening US dollar, strong fundamentals, and a coronavirus pandemic that has enhanced demand. The consensus is that agriculture will have an even stronger 2021 due to rising price inflation.

Cocoa

Thursday Settlement: -$6.00, or 0.23%, to $2,597 per metric ton
Weekly Performance:-0.08%
2020 Performance: +2.32%

Coffee

Thursday Settlement: -$0.0095, or 0.74%, to $1.273 per pound
Weekly Performance: +0.91%
2020 Performance: -1.43%

Corn

Thursday Settlement: +$0.1125, or 2.37%, to $4.8575 per pound
Weekly Performance: +7.82%
2020 Performance: +25.92%

Cotton

Thursday Settlement: +0.24 cent, or 0.31%, to 78.21 cents per pound
Weekly Performance: +2.42%
2020 Performance: +13.43%

Orange Juice

Thursday Settlement: +$0.0035, or 0.28%, to $1.2585 per pound
Weekly Performance: +5.78%
2020 Performance: +26.23%

Rice

Thursday Settlement: +$0.0035, or 0.29%, to $12.24 per pound
Weekly Performance: -0.16%
2020 Performance: +1.79%

Soybeans

Thursday Settlement: +$0.0975, or 0.75%, to $13.1025 per bushel
Weekly Performance: +3.6%
2020 Performance: +39.2%

Sugar

Thursday Settlement: +0.22 cent, or 1.44%, to 15.50 cents per pound
Weekly Performance: +3.89%
2020 Performance: +15.33%

Wheat

Thursday Settlement: +$0.01, or 0.16%, to $6.4175 per bushel
Weekly Performance: +2.23%
2020 Performance: +15.58%

Bitcoin

The peer-to-peer decentralized virtual currency bitcoin posted fresh record highs this week as prices test $30,000. But will the cryptocurrency repeat this epic performance in 2021, or will the digital currency come back down to earth? The opinion is split, with some analysts forecasting bitcoin to surge to $40,000 and others arguing that it is a bubble on the cusp of deflating.

Thursday Settlement: +$65.00, or 0.22%, to $29,220.00 per coin
Weekly Performance: +25.98%
2020 Performance: +298.36%

Energy

Volumes in the energy markets were minimal during the holiday trading week, with investors refraining from making major bets on the sector and rebalancing their portfolios heading into a new year. That said, investors are anticipating a breakout 2021, following a hellacious 2020 that saw crude oil prices crater to subzero territory. Market analysts believe that the first two months could be critical for crude futures due to the Organization of the Petroleum Exporting Countries (OPEC) and its allies, OPEC+, choosing to taper production cuts and enhance output or freezing monthly production levels.

West Texas Intermediate (WTI) Crude Oil

Thursday Settlement: +$0.02, or 0.04%, to $48.42 per barrel
Weekly Performance: +0.25%
2020 Performance: -23.19%

Brent Crude Oil

Thursday Settlement: -$0.08, or 0.15%, to $51.72 per barrel
Weekly Performance: +0.74%
2020 Performance: -24.72%

Natural Gas

Thursday Settlement: +$0.114, or 4.71%, to $2.536 per million British thermal unit (btu)
Weekly Performance: -0.24%
2020 Performance: +19.96%

Gasoline

Thursday Settlement: +$0.0098, or 0.7%, to $1.4111 per gallon
Weekly Performance: +2.81%
2020 Performance: -19.4%

Heating Oil

Thursday Settlement: -$0.0071, or 0.48%, to $1.4847 per gallon
Weekly Performance: -0.5%
2020 Performance: -27.91%

Metals

Gold and silver prices logged their best annual performance since 2010, buoyed by a cratering US dollar, inflation concerns, and safe-haven demand. Although the precious metals cooled off their meteoric ascent in November and December, industry observers believe that they could replicate 2020 over the next 12 months due to the debt and inflation tsunami spawned by governments and central banks worldwide. Plus, a weakening greenback and historically low interest rates could add to gold and silver’s investment appeal.