Arab Today, arab today commodities haunted by brazil china woes
Last Updated : GMT 12:27:49
Arab Today, arab today
Arab Today, arab today

Commodities haunted by Brazil, China woes

Arab Today, arab today

Arab Today, arab today Commodities haunted by Brazil, China woes

Top coffee producer Brazil
London - AFP

Coffee prices scored new lows this week as Brazil was snared by emerging markets turmoil, while crude oil sank on stubborn fears over Chinese demand and global oversupply.

Top coffee producer Brazil hit the headlines after Standard & Poor's ratings agency slashed the nation's credit assessment to junk on Wednesday.

The bombshell sent Brazil's currency, the real, collapsing to a new 13-year low point against the dollar.

In turn, Robusta coffee hit a two-year nadir at $1,544 per tonne in Friday trade in London while Arabica touched 116 cents per pound -- last seen one and a half years ago -- in New York.

Robusta, a bitter variety used in instant coffee, and the more expensive Arabica are the most widely traded types of the commodity.

"The further depreciation of the Brazilian real was to blame for the falling coffee price," said Commerzbank analyst Carsten Fritsch.

"After S&P downgraded Brazil's credit rating to junk level on Wednesday, the Brazilian currency plunged to its lowest level since October 2002."

The Latin American powerhouse saw economic growth peak at 7.5 percent in 2010 during a global commodities boom.

However, much like Russia, Brazil has been hit hard by the plummeting value of oil and other raw materials, as well as drop in demand from BRICS kingpin China.

Brazil, the world's leading producer of coffee and sugar, is also a major exporter of oil, iron ore and soybeans.

Meanwhile, the oil market see-sawed this week as traders reacted to mixed signals over demand and supply, but finished sharply lower.

"This week in oil was rather a zigzag," Fritsch told AFP.

"Fundamentals (of supply and demand) were also mixed this week, with lower Chinese oil imports and rising US inventories being offset by falling US oil production and a bullish IEA report."

The price of crude  -- which oils the wheels of the global economy -- has fluctuated wildly in recent weeks on worries over top energy consumer China and the US interest rate outlook.

Financial markets have been rocked by concern that China's economic slowdown could herald a global recession -- and a savage slump in demand for commodities.

"The world appears to be at a material and rising risk of entering a recession, led by emerging markets and in particular by China," said Citi analyst Bruce Rolph in a note to clients.

"Should China enter a recession -- and with Russia and Brazil already in recession -- many other emerging markets, already weakened, will follow.

"This could be driven in part by the effects of China's downturn on the demand for their exports and, for the commodity exporters, on commodity prices."

- Loss of world growth engine -

Rabobank analyst Jane Foley agreed China's slowdown was still looming large, while other emerging markets faced "extensive" problems arising from recent falls in commodity prices.

"In recent months it has become increasingly clear that the world economy has lost an engine of world growth," Foley said.

"The economic expansion in China is slowing but the problems facing emerging markets are far more extensive.
"Brazil and Russia are both in recession and the economies of many other commodity producing countries have been hit hard by supply gluts in outputs such as oil, copper and iron ore."

Oil has roughly halved in value since last year, plagued also by a worldwide supply glut and booming US shale output.

By the end of the week, oil prices were trading significantly lower in London.

Brent North Sea crude changed hands at $47.31 a barrel -- down from $49.95 a week earlier. WTI traded at $44.23, up from $46.22.

Both London and New York coffee prices ended the week in the red -- but sugar finished on a mixed note as rainy weather boosted hopes of a bumper crop.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today commodities haunted by brazil china woes Arab Today, arab today commodities haunted by brazil china woes

 



Arab Today, arab today
Arab Today, arab today Saudis await visitors but will they come?

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Blind sheikh buried in Egypt

GMT 06:32 2017 Thursday ,23 February

Blind sheikh buried in Egypt
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Salma Rashid happy for 'A Whisper of Love'

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday