The agriculture sector, troubled by tariffs and ample supply, bore the brunt of the selling. American pork prices tumbled with expanded production failing to meet an expected pick up in overseas sales - especially from China where prices have surged as the country’s pork supplies have slumped due to African swine fewer. Corn sold off and following a roller-coaster ride, returned to the May low before bouncing back on the news that Trump, under pressure from angry farmers, would boost quotas for grain-based biofuels. Apart from news on the biofuel front, the next focus for the US grain market will be the upcoming harvest season. Beginning September 9, the US Department of Agriculture will release weekly harvest progress reports.
Gold’s impressive rally, which began with the collapse in global bond yields back in early June initially, left other metals with weaker fundamentals trailing. However, after reaching a six-year high and with speculative longs hitting record levels, investors have begun looking for relative value in other metals such as silver and platinum during the past couple of weeks.
This expansion of safe-haven demand saw platinum head for its biggest weekly gain since 2015 with the discount to gold crumbling by 80 dollars during this time to 600 dollars. The gold-silver ratio measuring the value of one ounce of gold in ounces of silver dropped to 83 after topping out recently at a multi-decade high above 93.