Commodities Update — Gold rises; Wheat falls; London copper prices fall on hawkish Fed views
RIYADH: Gold prices rose on Wednesday, drawing on support from escalating tensions between Beijing and Washington, although firmer US Treasury yields capped gains in the non-yielding asset and held it below a one-month high hit in the last session.
Spot gold rose 0.3 percent to $1,765.68 per ounce by 0839 GMT. On Tuesday, bullion rose to its highest since July 5, hitting $1,787.79 before closing down 0.6 percent on the day to break a four-session winning streak.
US gold futures fell 0.4 percent to $1,782.90.
Spot silver fell 0.3 percent to $19.89 per ounce, while palladium rose 0.3 percent to $2,069.70.
Platinum eased 0.1 percent to $892.94.
Chicago wheat lost more ground on Wednesday, with prices dropping to their lowest in more than a week, as the resumption of maritime grain exports from Ukraine eased supply concerns.
Corn and soybeans rose for the first time in three sessions, although better-than-expected weekly US crop ratings limited gains.
The most-active wheat contract on the Chicago Board of Trade was down 0.3 percent at $7.72 a bushel, as of 0257 GMT. Earlier in the session, the contract dropped to its lowest since July 25 at $7.68 a bushel.
Corn added 0.3 percent to $5.96 a bushel and soybeans rose 0.5 percent to $13.92-3/4 a bushel.
Romania has wheat surplus to export
Romania’s wheat harvest is large enough to cover its domestic needs and ensure a surplus for exports, Agriculture Minister Petre Daea said on Wednesday, with 96 percent of the crop reaped so far.
High temperatures and prolonged drought have affected crops, particularly maize and sunflower seeds, across the country and preliminary ministry data on Wednesday showed damage to 205,257 hectares out of roughly 7 million of grain and oil-producing crops.
Romania is among the largest grain sellers to the EU and an active exporter to the Middle East.
It reaped a record grain crop in 2021, including 11.3 million tons of wheat. Its grain crop is generally two to three times the size of its domestic needs.
Copper prices down
London copper prices drifted lower on Wednesday on hawkish comments from US Federal Reserve officials, while flaring geopolitical tensions between the US and China during House Speaker Nancy Pelosi’s trip to Taiwan aided risk-off sentiment.
Three-month copper on the London Metal Exchange declined 0.4 percent to $7,775 a ton as of 0200 GMT.
The most-traded September copper contract on the Shanghai Futures Exchange lost 0.3 percent to $8,872.39 a ton.
(With input from Reuters)