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Raw material prices under pressure;  Details here

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Evergrande’s liquidity is one part of the problem, the other is China’s slowdown. The country is not only releasing metals and crude, but also grains into the physical market and that seems to be weighing down.

Metal prices after witnessing a sharp drop on Monday saw some buying on Tuesday, but most commodities continued to fall.

Evergrande’s liquidity is one part of the problem, the other is China’s slowdown. The country is not only releasing metals and crude, but also grains into the physical market and that seems to be weighing down.

The strong US dollar is trading at its highest for a month. As the US Fed meeting kicks off today, announcements are expected to be made tomorrow.

Before that, profit-taking and long-position liquidations are observed in commodities.

Sugar has come down and is now trading below 19 cents. It’s a minimum of one week.

Cocoa fell 3% overnight and is now trading at its lowest level in two weeks.

Cotton prices have fallen to their lowest level in six weeks, world wheat is now trading at its lowest level for six weeks. On a weekly and monthly basis, many of these commodities are trading negatively, with significant declines seen in sugar, cocoa and palm oil.

Rubber prices are trading at their lowest level in a year, falling 9% in a year.

Only a few commodities that have positive fundamentals like coffee and rice still trade positively on a weekly, monthly and yearly basis. Other commodities suffered declines.

First publication: STI

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