1. Reports
  2. Daily Base Metals Report
Non-independent Research

Daily Base Metals Report

Read risk warning

US stocks began the week on the front foot as record gains in home sales offset an increase in coronavirus cases. This weekend, global coronavirus-related cases crossed 10m, with 500,000 deaths so far. The yield on a 10y Treasuries declined to 0.634% and the dollar strengthened. The US-Sino trade conflict continues to advance, as countries begin company blacklisting; pressure is likely to persist up to US presidential election. UK mortgage approvals sank to record low in May, indicating the extent to which the housing market has been hit by COVID-19.

Prices on the LME were supported today as risk appetite prompted the market. Only tin was lower on the day, closing at $16,775/t. Aluminium remained well supported above $1,600/t, with prices closing near day’s high at $1,609/t. Copper remained range-bound, closing closer to the support level of $5,950/t at $5,961.5/t. Nickel broke above key resistance today, closing above $12,800/t at $12,806/t. Lead prices traded up to $1,800/t, closing just above at $1,801.5/t. Cash to 3 months tightened into -$9.75/t.

Oil prices were firmer, supported by Chesapeake, US shale pioneer, plans to cut drilling for 2020 as it filed for bankruptcy. At the time of writing, WTI and Brent trade at $39.30/bl and $41.56/t respectively. Gold and silver extended their gains, edging up to $1,770.50/oz and $17.83/oz at the time of writing.

Risk warning

This is a marketing communication. The information in this report is provided solely for informational purposes and should not be regarded as a recommendation to buy, sell or otherwise deal in any particular investment. Please be aware that, where any views have been expressed in this report, the author of this report may have had many, varied views over the past 12 months, including contrary views.

A large number of views are being generated at all times and these may change quickly. Any valuations or underlying assumptions made are solely based upon the author’s market knowledge and experience.

Please contact the author should you require a copy of any previous reports for comparative purposes. Furthermore, the information in this report has not been prepared in accordance with legal requirements designed to promote the independence of investment research. All information in this report is obtained from sources believed to be reliable and we make no representation as to its completeness or accuracy.

This report is not subject to any prohibition on dealing ahead of the dissemination of investment research. Accordingly, the information may have been acted upon by us for our own purposes and has not been procured for the exclusive benefit of customers. Sucden Financial believes that the information contained within this report is already in the public domain. Private customers should not invest in these products unless they are satisfied that the products are suitable for them and they have sought professional advice. Please read our full risk warnings and disclaimers.

Sign-up to get the latest Non-independent research

We will email you each time a new report has been published.

You might also be interested in...

Daily Report FX

A morning report covering fundamentals and technicals for USD, EUR, GBP, JPY, and CHF

Daily Report Softs Technical Charts

Technical analysis and charts for the key sugar, cocoa and coffee contracts.

Weekly Report FX Options

Commentary and analysis covering OTC currency option pricing, volatility and positioning.

Quarterly Metals Report – Q3 2020

Our analysts provide fundamental and technical analysis and forecasts for base and precious metals, iron ore and steel. We assess how COVID-19 has impacted the metals market and outline what data points to look at to help navigate the next few months in the market.