Commodity Capsule: Oil prices marginally lower; Copper rises; Gold flat

Commodity Capsule: Oil prices were marginally lower on Monday as investors stayed fretful over the pace of economic growth in China, and the prospect of further U.S. interest rate hikes that could dampen fuel demand.

Brent and WTI posted a second week of losses on Friday after Fed Chair Jerome Powell said the US central bank may need to raise rates further to cool still-too-high inflation.

China's move to halve stamp duty on stock trading to boost struggling markets temporarily pushed up prices.

China's manufacturing purchasing managers' index is likely to reveal more dour economic news. China's PMI was likely to stay in contraction territory for the fifth consecutive month.

Copper climbs on China's latest move to support stock market

Shanghai copper prices were buoyed by China's latest move to support its ailing stock market, even as a firm dollar amid prospects of further interest rate hikes by the Federal Reserve weighed on sentiment.

Shanghai October copper posted a 1.1 per cent climb in the previous week. 

London Metal Exchange was closed for the Summer Bank Holiday.

China halved the stamp duty on stock trading effective Monday in the latest attempt to boost its struggling market.

China's industrial profit declined for seventh consecutive month.

Weighing on copper prices was the dollar holding firm amid worries of more interest rate rises; hovering at a 12-week high past 104.

Copper paused its rally on Friday after Fed Chair Jerome Powell said the central bank might need to raise interest rates further to ensure inflation was contained.

Gold flat after Powell's hawkish speech; focus on economic data

Gold prices were largely range-bound as Federal Reserve Chair Jerome Powell's hawkish commentary doused expectations that the US rate-hiking cycle was nearing an end.

Investors awaited key economic data including the U.S. non-farm payroll report on Friday.

Any thoughts that the 2 per cent inflation goal long sought by the US Fed and European Central Bank might possibly be in for tweaking were dashed by chiefs of the two institutions.

Speaking at the annual gathering in Jackson Hole, Powell left open the possibility of further rate increases and stressed the US economy's surprising strength.

Drop in euro zone inflation needs to be timely and sustainable before policymakers can conclude they have succeeded, ECB President Christine Lagarde said.

COMEX gold speculators cut net long position by 20,845 contracts to 25,695 in week to August 22--CFTC

International raw sugar, soybean hovers one month high

ICE raw sugar ​​settled close to 25 cents/lb, up 4.5 per cent last week.

The market has been supported this week by news that India is expected to ban mills from exporting sugar in the season starting in October, halting shipments for the first time in seven years.

Production in the Centre-South region of Brazil, however, is running well above last season's pace.

"If India exports less or indeed no sugar at all, Brazil could step into the breach" --Commerzbank.

Soybeans reached past $14/Bushel, the highest since July 27. Prices are up nearly 10 per cent from a low on August 8

There are forecasts of more hot and dry weather in the US Midwest, which could further reduce production.

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