Most industrial and energy commodity prices fell again this week as mounting protectionism and China’s subdued PMI data for July raised concerns about the outlook for commodities demand. That said, prices did recover some lost ground on Friday in the wake of a weak US non-farm payrolls number, which prompted a dip in the dollar. Elsewhere, the price of wheat bucked the otherwise negative tone in markets, rising strongly on reports of weather-related damage to crops in northern Europe and Russia.
Turning to next week, China’s July trade data on Wednesday will be closely watched for signs that softer economic activity is translating into lower commodity import demand. The export data may also provide some insight into whether the rise in protectionism is having a negative impact on external demand for China’s refined metals and petroleum products.
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