A very mixed month for commodities as the timing of the next US rate rise loomed larger as the month ended, and continues as September begins.
The speculation has supported a stronger US dollar, which has in turn undermined many commodities.
At the same time rising supplies of key commodities such as wheat, copper and corn pressured prices, and oil markets focused on this month’s unofficial OPEC members meeting that could see some sort of agreement to moderate oil suppliers.
Copper was especially savaged, losing more than 6% and prompting investors and analysts to wonder if the metal’s biggest buyer, China, was seeing weakening demand.
Iron ore ended around $US60.56 a tonne – all but unchanged over the month and again undermining those confident forecasts for a slump.
US wheat futures stood out in August, hitting 10 year lows under $US4 a bushell on the Chicago Board of Trade in the last week of the month – a big negative for Australia’s summer harvest and export returns over the next year.
December wheat futures fell 4 cents, or 1%, to settle at $US3.88 25 a bushell in Chicago, the lowest settlement since August 2006 and down around 4% lower for the month. That took the loss so far this year to around 17%, according to US data group, FactSet.
Oil futures dropped to a three week low overnight after weekly data showed that US supplies of crude oil rose more than expected for the week ended August 26.
October West Texas Intermediate crude futures dropped $US1.65, or 3.6%, to settle at $US44.70 a barrel in New York, to be up 7.5% for the month.
In London October Brent crude futures fell $US1.33, or 2.8%, at $US47.04 a barrel.
The October futures contracts expired at the day’s settlement. The new front month is November and it was trading at $US47.22.
Brent rose by around 9% over the month.
Gold futures settled lower on Wednesday, for its first monthly fall since May.
Comex gold for December fell $US5.10, or 0.4%, to settle at $US1,311.40 an ounce, for a 3.4% decline over August.
Comex silver for December delivery rose 3 cents, or 0.2%, to settle at $US18.71 an ounce, but slumped 8.1% over August.
December copper edged up one-tenth of a cent to $2US.078 a pound.
But over the month, copper slid 6.5%.
