In this week's Market Movers Americas, presented by Jennifer Pedrick:
• US crude oil sluggish over mixed outlook on recession
• Weather drives US grains markets
• Water levels, labor negotiations impact shipping rates
• US HRC market seeks clarity following mill price hikes
This week,
Crude oil markets remain bogged down by recessionary fears and concerns about potential future interest rate hikes. Last week's initial jobless claims report from May and the consumer sentiment report releasing June 30 could provide key insights on US economic strength under inflationary pressures.
Weather remains the focus in US agriculture markets, with a dry start to the growing season recently sparking a strong rally. An update to crop conditions is expected to show a further decline in corn and soybean conditions early in the week, but midweek rains in the forecast could provide some relief. Sharp swings in cash prices have slowed trade in US export markets, which have already been pressured by record production out of Brazil, and that volatility is expected to remain.
Dry weather is also impacting shipping. Gatun Lake levels feeding the Panama Canal's locks have dropped, leading to historically low draft restrictions. Also in shipping, container import rates for cargo from North China into West Coast North America have dropped steeply, but market participants remain optimistic. Volumes are expected to increase since labor negotiations on the US West Coast reached a tentative six-year agreement in mid-June.
Participants in the US flat-rolled steel market continue to search for clarity on prices following mill-announced price hikes. Multiple domestic steelmakers have announced increases of $50 per short ton on hot-rolled coil, marking the first announced price move from major mills since March.
I'm Jennifer Pedrick. Thanks for kicking off your Monday with S&P Global Commodity Insights.