From oil to mineral .. Trump's policy pushes up the prices of basic commodities

After the ghost of the trade war returned to the market, oil and industrial mineral prices fell after US President Donald Trump threatened to impose customs duties on Mexico and Canada, while gold prices rose with investors seeking safe Haven assets. The possibility of renewed global trade war is expressing basic merchandise, given the risks that threaten consumption and growth. Trump has kept him from laying up immediate fees on China, which currently offers some ease for the markets of soy and wheat beans. “The threat of customs duties is real, and it poses the risk of low economic growth,” says Oli Hansen, head of the basic commodity strategy at Saksu Bank. On his first day of power, the US president said he could impose customary duties up to 25% on the import of Canada and Mexico, who are senior crude oil suppliers of the United States, by February 1st. He also indicated that he plans to improve local oil and gas production, and eventually reduce prices. Brent Ru prices dropped to about $ 79 a barrel in London, while copper prices dropped short to below $ 9200 per tonne. Aluminum and bullets fell by more than 2% during the trading on the London metal stock exchange, while zinc fell by more than 1%. The fear of disruption of trade flow, Iowa Mansathi, the basic commodity strategy in “in Group NV”, said that “customs duties are the biggest threat to our industrial mineral prospects,” and added that commercial measures would disrupt trading flow and increase economic fluctuations. Gold prices have risen, one of the few goods that can benefit from mutual customs duties between the United States and its commercial partners, by 1.2%, while Silver Futures rose 1.1%. Mexico is considered the largest producer of silver, and it is not clear whether customs lights will be applied to the import of this mineral. A rest in the grain markets, but some markets rested on Tuesday that there were no new statements about China, which left traders in the event of a guess about how Trump handled the second largest economy in the world. In the grain markets, soybean futures in Chicago increased by 3.2%, and wheat prices affected their highest level in more than a year. But at the same time, the failure of the United States has immediate definitions on China, the largest importer of soybeans in the world and one of the most important wheat buyers and wheat, optimism increases that commercial turmoil in those markets is not serious as expected. But the threat of setting up customs definitions on China is not completely distributed, and when it is finally imposed, China can respond to the purchase of fewer US agricultural products. Over the past few years, Beijing has taken steps to diversify its import resources, with US purchases of soybean purchases to less than 20% in the first 11 months of last year. As far as energy prices are concerned, Trump also said he intends to fill the US strategic oil reserves of oil “to the top”, after reaching its lowest level since the eighties of the twentieth century, and signed an order to withdraw from the Paris climate agreement. It also canceled the ban on renting oil and marine gas, which actually prevented drilling in most US coastal waters.