Commodities: Broad-based losses as US dollar advance rolls onwards
Most commodities came under renewed selling pressure on Wednesday, as the advance US dollar continued to roll-on.
As of 2010 BST, the Bloomberg commodity index was down by 0.41% to 84.79 as the US dollar spot index made another big move towards its 52-week highs at 96.9840, hitting an intra-day level of 96.4320 after gaining 0.49%.
Feeding that strength in the US currency were relatively hawkish remarks from Atlanta Fed chief, Raphael Bostic, and his opposite number at the Cleveland Fed, Loretta Mester.
The former reportedly said on Wednesday that the US central bank was minded to let the economy stand on its own feet.
Against that backdrop, Brent crude oil futures for December delivery were down by 1.14% at $75.57 a barrel on the ICE, alongside a 1.79% drop in RBOB gasoline to $1.8039 a gallon.
Natural gas futures for November delivery were also lower, retreating 1.03% to $3.18/MMBtu.
In the agricultural space meanwhile, December corn on CBoT was down by 1.87% at $4.9950 a bushel.
Base metals' futures on the LME were also mostly lower, albeit only modestly, with three-month copper slipping from $6,193 per metric tonne at the open to $6,179 at the time of the closing bell.
Commenting on the price action in metals, traders at Sucden Financial said: "China's commitment to economic stimulus in the face of slowing growth and the trade war with the US appeared to be the catalyst for the overnight gains in LME prices.
"The move, albeit in thin turnover took zn to 2721, copper up to 6275 and ali to 2017 but in the broader picture the recent trading ranges still remain. On the spreads, as the morning continued and into the p.m session, the earlier momentum was lost and prices edged lower as the USD gained ground."