The European commodity market had an eventful week, with some notable winners and losers.
Nickel 3M Cash (P8Y00) experienced a significant drop of -7.64% in recent days, breaking multiple moving averages and causing concern among traders. The French New Caledonia territory, which holds a substantial portion of the world’s nickel reserves, recently faced political turmoil that impacted global nickel prices. However, as France lifts its state of emergency and dialogue resumes, transit of goods is expected to recover, potentially affecting the mining sector.
In contrast, Cocoa #7 (CAU24) saw a notable increase of +6.02% due to restrictions in Ivory Coast sales lowering global supplies, driving cocoa prices up. The weekly chart remains bullish, with potential for prices to retest resistance levels soon.
On the other hand, Milling Wheat (MLU24) experienced a decline of -5.98% due to reduced crop forecasts in Russia caused by unfavorable weather conditions. Despite the bearish trend, there may be opportunities in the options market due to high implied volatility.
Zinc Special Hg Cash (Q3Y00) also faced a decline of -5.34% following a liquidation in the metal market. The bearish trend is further supported by high LME stocks and weak Chinese manufacturing PMI data.
Rapeseed (XRQ24) saw a decrease of -4.62% after a continuous uptrend, with the possibility of a trend reversal if it closes below the 10 EMA. The processing of rapeseed in Ukraine is expected to remain strong during the upcoming season.
Overall, the European commodity market experienced a mix of gains and losses, reflecting various global factors impacting different commodities. Traders are keeping a close eye on the market for potential opportunities amidst the fluctuations.
