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Why coffee's hot but gasoline's not
There've been big rises in the price of Cocoa and Arabica coffee this week but gasoline has fallen right back. Saxo Bank's Head of Commodity Strategy, Ole Hansen, explains why we've seen such big movements in some of the world's most widely traded commodities these past seven days.
Ole says crude oil ran into some profit taking this week and demand hasn't really kept up with supply. The metal market was driven by China and there were increased imports of raw materials which benefited the price of copper in particular.
Arabica Coffee, the high quality bean, is recovering in price after the Brazilian government intervened in the market because some farmers in the country have been producing below cost. And cocoa is this week's big winner, gaining more than 7% on the week. Dry weather in West Africa is making traders nervous.
01:37 minutes
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