Brent Settles Over $71, While Backwardation Grows As Market Pushes Back Potential Additional Iranian Supply To Q3 At Earliest

Gold and silver up slightly on inflation concerns and soybean oil rises to 10-year high on tight global supplies of edible oils

Published Jun 3, 2021 2:08 AM ET

Brent Crude Hourly | Source: Refinitiv

HEADLINES & MACRO

Nuclear talks with Iran to adjourn until 10 June
Fed Beige Book flags increased pricing pressures since previous report. Firms expected to start passing higher costs, charging higher prices in months ahead.
API inventory report: Gasoline +2.51M barrels, Distillates +1.59M barrels, Cushing +741K barrels

NOTABLE GAINERS

Freightos Baltic North America East Coast To China/East Asia 40 Container Index up 12.8% (YTD: 96.9%)
Freightos Baltic North America East Coast To Europe 40 Container Index up 12.1% (YTD: 77.6%)
Freightos Baltic North America West Coast To China/East Asia 40 Container Index up 7.7% (YTD: 95.9%)
DCE Coke up 7.2% (YTD: -16.2%)
Pork Primal Cutout Butt up 6.1% (YTD: 128.6%)
CME Random Length Lumber up 5.0% (YTD: 52.4%)
DCE RBD Palm Oil up 4.4% (YTD: 21.7%)
CBoT Soybean Oil up 4.4% (YTD: 62.4%)
Bursa Malaysia Crude Palm Oil up 3.7% (YTD: 7.1%)
DCE Coking Coal Continuation Month 1 up 3.6% (YTD: 6.6%)
CME Live Cattle up 3.1% (YTD: 3.7%)

NOTABLE LOSERS

SMM Erbium Oxide Spot Price Daily down -7.4% (YTD: 12.3%)
DCE Iron Ore Continuation Month 1 down -2.7% (YTD: 14.2%)
Johnson Matthey Rhodium New York 0930 down -2.2% (YTD: 45.2%)
CBoT Corn down -2.0% (YTD: 39.5%)
CBOE Crude Oil Volatility Index down -2.0% (YTD: -13.4%)
EEX European-Carbon- Secondary Trading down -1.9% (YTD: 60.1%)
ICE Europe CO2 EUA Yearly down -1.9% (YTD: 57.1%)
Shanghai International Exchange TSR 20 Rubber down -1.7% (YTD: 4.1%)
COMEX Copper down -1.3% (YTD: 30.9%)
CBoT Soybean Meal down -1.2% (YTD: -9.3%)
SHFE Lead Continuation Month 1 down -1.2% (YTD: 4.2%)
SMM Rare Earth Terbium Oxide Spot Price Daily down -1.1% (YTD: -9.3%)

ENERGY

WTI crude front month currently at US$ 68.73 per barrel, up 1.6% on the day (YTD: +41.9%); 6-month term structure in widening backwardation
Brent crude front month currently at US$ 71.26 per barrel, up 1.6% on the day (YTD: +37.7%); 6-month term structure in widening backwardation
Brent volatility at 26.9, down -5.8% on the day (12-month range: 24.7 - 58.9)
Newcastle Coal (ICE Europe) currently at US$ 119.95 per tonne, down -0.5% on the day (YTD: +49.0%)
Natural Gas (Henry Hub) currently at US$ 3.08 per MMBtu, down -0.9% on the day (YTD: +21.1%)
Gasoline (NYMEX) currently at US$ 2.19 per gallon, up 1.1% on the day (YTD: +55.8%); 6-month term structure in widening backwardation
Low Sulphur Gasoil (ICE Europe) currently at US$ 579.75 per tonne, up 0.8% on the day (YTD: +37.3%)

BASE METALS

Copper (COMEX) currently at US$ 4.60 per pound, down -1.3% on the day (YTD: +30.9%)
Iron Ore (Dalian Commodity Exchange) currently at CNY 1,232.50 per tonne, down -2.7% on the day (YTD: +14.2%)
Aluminium (Shanghai) currently at CNY 18,475 per tonne, down -0.6% on the day (YTD: +18.9%)
Nickel (Shanghai) currently at CNY 133,800 per tonne, unchanged (YTD: +7.3%)
Lead (Shanghai) currently at CNY 15,385 per tonne, down -1.2% on the day (YTD: +4.2%)
Rebar (Shanghai) currently at CNY 4,830 per tonne, up 0.7% on the day (YTD: +14.5%)
Tin (Shanghai) currently at CNY 206,120 per tonne, up 0.7% on the day (YTD: +37.7%)
Zinc (Shanghai) currently at CNY 22,945 per tonne, up 0.9% on the day (YTD: +10.4%)
Refined Cobalt (Shanghai) spot price currently at CNY 346,500 per tonne, unchanged (YTD: +26.5%)
Lithium (Shanghai) spot price currently at CNY 620,000 per tonne, unchanged (YTD: +27.8%)

PRECIOUS METALS

Gold spot currently at US$ 1,907.46 per troy ounce, up 0.4% on the day (YTD: +0.5%)
Gold 1-Month ATM implied volatility currently at 12.53, down -3.4% on the day (YTD: -18.4%)
Silver spot currently at US$ 28.15 per troy ounce, up 1.0% on the day (YTD: +6.8%)
Silver 1-Month ATM implied volatility currently at 29.52, down -1.5% on the day (YTD: -27.9%)
Palladium spot currently at US$ 2,866.52 per troy ounce, down -0.2% on the day (YTD: +16.8%)
Platinum spot currently at US$ 1,194.82 per troy ounce, down -0.1% on the day (YTD: +11.4%)
Rhodium (Johnson Matthey, New York 09:30) currently at US$ 24,750 per troy ounce, down -2.2% on the day (YTD: +45.2%)
Iridium (Johnson Matthey, New York 09:30) currently at US$ 6,300 per troy ounce, unchanged (YTD: +142.3%)

AGRO

Live Cattle (CME) currently at US$ 117.13 cents per pound, up 3.1% on the day (YTD: +3.7%)
Lean Hogs (CME) currently at US$ 118.25 cents per pound, down -0.3% on the day (YTD: +68.3%)
Rough Rice (CBOT) currently at US$ 13.31 cents per hundredweight, up 0.2% on the day (YTD: +7.3%)
Soybeans Composite (CBOT) currently at US$ 1,571.25 cents per bushel, up 0.9% on the day (YTD: +18.8%)
Corn (CBOT) currently at US$ 678.00 cents per bushel, down -2.0% on the day (YTD: +39.5%)
Wheat Composite (CBOT) currently at US$ 690.75 cents per bushel, down -0.9% on the day (YTD: +7.3%)
Sugar No.11 (ICE US) currently at US$ 17.68 cents per pound, down -0.1% on the day (YTD: +14.1%)
Cotton No.2 (ICE US) currently at US$ 83.77 cents per pound, down -0.6% on the day (YTD: +7.2%)
Cocoa (ICE US) currently at US$ 2,426 per tonne, down -0.2% on the day (YTD: -6.8%)
Coffee Arabica (Colombia Excelso) currently at EUR 3,848 per tonne, down -0.4% on the day (YTD: +21.6%)
Random Length Lumber (CME) currently at US$ 1,330.50 per 1,000 board feet, up 5.0% on the day (YTD: +52.4%)
TSR 20 Rubber (Shanghai) currently at CNY 10,485 per tonne, down -1.7% on the day (YTD: +4.1%)
Soybean Oil Composite (CBOT) currently at US$ 71.15 cents per pound, up 4.4% on the day (YTD: +62.4%)
Crude Palm Oil (Bursa Malaysia) currently at MYR 4,166 per tonne, up 3.7% on the day (YTD: +7.1%)

SHIPPING

Baltic Dry Index (Baltic Exchange) currently at 2,568, down -1.1% on the day (YTD: +88.0%)
Freightos China To North America West Coast Container Index currently at 5,577, up 1.5% on the day (YTD: +32.8%)
Freightos North America West Coast To China Container Index currently at 1,014, up 7.7% on the day (YTD: +95.9%)
Freightos North America East Coast To Europe Container Index currently at 645, up 12.1% on the day (YTD: +77.6%)
Freightos Europe To North America East Coast Container Index currently at 4,366, unchanged (YTD: +133.6%)
Freightos China To North Europe Container Index currently at 10,627, up 0.9% on the day (YTD: +87.7%)
Freightos North Europe To China Container Index currently at 1,739, down -0.2% on the day (YTD: +26.4%)
Freightos Europe To South America West Coast Container Index currently at 3,099, up 0.3% on the day (YTD: +83.2%)

CARBON EMISSION ALLOWANCES (CO2)

EUA futures front month (European Energy Exchange) currently at EUR 51.40 per tonne, down -1.9% on the day (YTD: +57.1%)