Commodities round-up: OPEC+ delays meeting, Coffee rallies

• OPEC+ delay oil policy meeting to December 5th

• Oil benchmarks ↓ over 3% this week

• Robusta & Arabica coffee hit multi-decade highs

• Coffee one of top performers in FXTM commodity universe

In case you missed the memo, OPEC+ has postponed its next oil policy meeting to December 5th from December 1st due to a conflicting event.

Oil benchmarks offered a muted response to this news and are down over 3% this week.

Earlier in the week, there were whispers around the cartel delaying production hikes for the third time this year amid weak demand and prospects of more supply under President Donald Trump.

For reference: OPEC+ delayed planned production hikes in September and November.

So, Thursday 5th December could be significant for oil markets depending on what choice OPEC+ makes.

Note: OPEC+ is the alliance of 23 major oil-producing countries, including Saudia Arabia and Russia.

The reality of the matter is that the cartel is in a tough spot. 

• On one hand, they want to pump out more oil in 2025 to sell more to cover government spending. But more supply may result in lower oil prices.

• On the other hand, keeping output at current levels could stop oil prices from falling further at the expense of higher production.

Whatever the outcome of the OPEC+ meeting, it will influence not only oil prices but also currencies linked to oil - such as the Canadian Dollar and the Norwegian Krone.

Taking a quick peek at the technicals, Brent remains trapped within a range on the weekly charts with support at $70.50 and resistance at $76.00.

• A solid breakout above $74.60 could trigger a move toward $76 and $79.50.

• A breakdown below $70.50 may open the doors toward $68.49 and a fresh 2024 low at $68.00.

Here is something for our coffee lovers…

FXTM’s Arabica Coffee extended an aggressive rally yesterday, hitting its highest level since 1977!

Robusta also surged to levels not seen since 1970.

Note: US soft commodity markets are closed today (28th November) for the Thanksgiving holiday.

Why?

Coffee prices have been boosted by global supply worries thanks to a severe drought earlier this year in Brazil and dryness in Vietnam.

Note: Brazil is the biggest exporter of premium Arabica while Vietnam is the biggest exporter of the cheaper Robusta.

With Arabica gaining over 70% year-to-date and Robusta 80%, they are one of the top performers in FXTM’s soft commodity universe.

• Cocoa: 110%

• Robusta: 80%

• Arabica: 73%

• Sugar: 5%

• Copper: 4%

• Cotton: -9%

• Corn: -12%

• Wheat: -14%

• Soybean: -24%

Click here for more information on FXTM’s soft commodities!