Commodities: OPEC raises call on production, Bitcoin crashes then rebounds

Alexander Bueso WebFG News | 13 Nov, 2017 18:35 - Updated: 18:35 | | |

bitcoin

The commodities complex started the week little changed, with weakness in soft commodities offset by gains in many metals futures contracts.

Three-month LME copper did especially well, finishing the session at $6,895 per metric tonne versus $6,810 at the start of trading. Lead and nickel also ended the day sporting gains.

Precious metals also ended on a positive note, with the December COMEX gold contract adding 0.40% to $1,279/oz. and spot platinum tacking on 0.44% to $933.51/oz.

Going the other way, December CBoT corn erased 0.92% to end at $3.4250 a bushel, while similarly-dated wheat futures lost 1.51% to $4.25 a bushel.

March 2018 ICE-traded cocoa also ended in the red, closing 0.35% lower at $0.6890.

In the energy space, the January 2018 Brent contract shed 0.41% to $63.24 a barrel on the ICE, even as West Texas Intermediate for December delivery advanced 0.2% to $56.84 a barrel.

The latter was despite the latest weekly rig survey data from Baker Hughes, released on 10 November, showing the US rig count climbed by nine to 738.

Acting as a backdrop, in its latest monthly report, released on Monday, the Organisation of Petroleum Exporting Countries raised its so-called 'call on OPEC' for 2018 by 400,000 barrels a day to 33.4m b/d.

Elsewhere, Bitcoins jumped 8.74% to $6,369.37 according to Coindesk, but only following a brief sharp plunge to $5,605 earlier during the same session.

The initial sharp drop in the cryptocurrency's value was linked by some observers to the cancellation of a technology upgrade on 8 November.

As Kathleen Brooks, research director at City Index explained to clients: "The cancellation of the upcoming Bitcoin fork, Segwit2x. This may have weighed on the price as pre-fork buyers who were looking to benefit from another upsurge in price, as we saw with the fork that created Bitcoin cash back in August. This impact should be temporary."

From a bird's eye view, as of 1800 GMT the US dollar spot index was edging higher by 0.16% to 94.54, alongside a largely unchanged Bloomberg commodity index that was 0.04% ahead to 87.32.

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