Menu

Higher food prices and volatility in commodity markets are here to stay, according to a new report by the OECD and the UN Food and Agriculture Organisation (FAO).

The outlook for the global steel industry is promising, with global demand forecast to increase by an annual 6% in both 2011 and 2012, according to industry and government officials at the OECD’s Steel Committee meeting in Paris on 12-13 May 2011. But downside risks remain, including further rises in steel raw material prices, continuing sluggish growth in advanced economies and high oil prices.

Booming silver investment was the primary source of the astounding 78 percent intra-year increase in silver prices in 2010. A sturdy rebound in total fabrication demand, led by the industrial sector, was also significant, according to World Silver Survey 2011, released by the Silver Institute.

Commodity markets were markedly higher in December as fundamental supply and demand characteristics strengthened and the global macroeconomic outlook improved. Each commodity in the index appreciated over the course of the month.

The world steel industry is emerging from the worst slowdown in more than half a century although the overall situation remains fluid and challenging, according to industry and government officials at the OECD’s Steel Committee meeting in Paris on 2 -3 December 2010.

If global wheat prices remain at or near the high levels reached in August, food companies in the United States will be forced to absorb at least $2 billion in additional costs over the next 12 months or pass these costs on to consumers. "Separating the Wheat from the Chaff," a new study by Oliver Wyman, quantifies the economic impact of recent global wheat shortages to the US food industry.

Demand for gold will remain robust during 2010 as a result of accelerating demand from India and China, as well as increasing global investment demand driven by continuing uncertainty over public debt and economic recovery, the World Gold Council ("WGC") said.

Commodity markets suffered in May as negative investor sentiment and broad-based macro-themes resulted in losses. However, recent price weakness may provide opportunity as fundamentals remain strong.

The 12-member Organization of the Petroleum Exporting Countries' (OPEC) crude oil production output averaged 29.21 million barrels per day (b/d) in April, 90,000 b/d lower than the 29.3 million b/d estimated for March, according to a just-released Platts survey of OPEC and oil industry officials and analysts.

China's apparent oil demand in March climbed 12.8% from a year ago to 35.25 million tonnes or about 8.12 million barrels per day (b/d), but fell below the all-time high of 8.5 million b/d estimated for February, according to a Platts analysis of official data just released.