Prevent earnings in energy commodities by climate in the EU


Mexico City / 02.01.2023 22:47:11

Los commodities They remained this Monday without changes derived from the closing of the stock markets for the New Year, but tomorrow energy prices are expected to register gains due to adverse weather conditions in the United States.

The main exchanges such as the Shanghai Futures Exchange, in Asia; the London Metal Exchange, in Europe; the Chicago Commodity Exchange and the New York Mercantile Exchange, in the United States, remained closed, so the market of commodities will resume operations on Tuesday, January 3.

Banco BASE explained that the US National Weather Service Expect heavy snowfall in South Dakota, Nebraska, and Minnesota, as well as severe thunderstorms in Oklahoma, Arkansas, Texas, Louisiana, and Kansas, where tornadoes, high winds, torrential rain, and hail could occur.

While in the northern regions and in the plains of the Mississippi Valley, heavy snowfall and freezing rain are expected, the financial institution indicated.

“The affected regions are where the Great Plains and the US corn belt are located, where the largest production of: corn, wheat and soybeans is located. Likewise, it is in these regions where the largest production of cattle is concentrated, as well as such as the extraction of oil and natural gas.

The financial institution added that because there are downside risks to supply, upward pressures are expected on the prices of these commodities. Likewise, energy companies could gain, driven by demand for natural gas and heating substitutes.

“An exception may be the price of gasoline, where a decrease in demand is likely to be observed as since last week the government has asked citizens to stay at home in regions affected by cold weather.”

Additionally, the market will also be attentive to the weekly publication of the data of the United States Energy Information Administration,to be published on Thursday, January 5 at 10:00 a.m.


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