Five Key Charts to Watch in Global Commodity Markets This Week

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(Bloomberg) — Oil prices are at 2021 levels. Copper is rushing to the US, leaving Asian and London inventories at historically low levels. And, boy is it hot and dry around the world — which is good for US farmers but not so much for those in Europe.

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Here are five notable charts to consider in global commodity markets as the week gets underway.

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Oil

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Oil’s plunge under US President Donald Trump’s second term has picked up steam, with fading hopes of a quick resolution to the US-China trade war sending prices to the lowest since 2021. OPEC+ leader Saudi Arabia’s seeming willingness to endure a longer period of depressed prices has added to the gloom as well. In the week ahead, traders will be looking for clues of how high the cartel is willing to push output over the longer term.

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Copper

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Copper is flowing into the US in record numbers, with more than 170,000 tons shipped in April, as top traders race to avoid potential tariffs. The moves have led to a tightening of the physical market, with stockpiles plunging at a record pace on the Shanghai Futures Exchange and available inventories slumping on the London Metal Exchange. Mercuria Energy Group — one of the biggest importers — has warned the import rush could drain global supplies and set the stage for a record-breaking rally in prices.

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US Crops

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The US Department of Agriculture will update spring planting progress and crop conditions in a weekly report Monday. Hot and arid conditions have allowed farmers to plant at a rapid clip, even as negligible amounts of rain in some parts of the American growing region foster drought and prompt concerns about smaller crop yields. In addition to the USDA data, traders will be tracking the weather as the extended outlook calls for below-normal precipitation in much of the northern half of the US.

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Weather

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High spring temperatures in the UK follow the country’s driest start to the year in four decades, which is threatening the country’s grain crops and increasing the risk of wildfires. There were just six days of measurable rainfall in March, the fewest in more than 70 years, figures from the Met Office, the nation’s weather and climate service show. Northwest Europe isn’t alone. India and the United Arab Emirates also are suffering with searing heat. 

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German Power

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Germans recently saw power prices go negative as a surge in solar generation coincided with a slump in demand, meaning consumption was being met nearly 99% by green energy. It’s a sign of things to come. The world’s third largest economy is set to add an unprecedented 17 gigawatts of solar capacity this year, breaking that record each year until at least 2030 and increasingly pushing fossil fuel generators out of the market.

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—With assistance from Kevin Orland and Michael Hirtzer.

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