Trade War Impact On Commodities

Before Sunday's deal, U.S. corn, sorghum, wheat, undenatured ethanol, and refined copper cathodes had faced an additional tariff of 10% an imports into China.

Trade war triggered by the US has hit the commodity prices and most of them including bullion, metals, oil and even agri commodities fell on risk aversion which is understood to have just begun. On Friday US President Donald Trump announced levying a 25 percent tariff on up to $50 billion worth of Chinese imports. China immediately retaliated with similar move. In last two days oil, gold-silver and metals and most other commodities fell 2-3 per cen while cotton fell by over 5 per cent. Nigam Arora, a US based analyst and author of Arora Report said that, "Fears of a trade war, Concern that OPEC and Russia may start producing more oil at a time when U.S. oil production is rising and the strengthening dollar have hurt the sentiment and commodities fell. He explained that, since commodities are priced in dollars and hence they move inversely to the dollar."After China announcing similar tariff on goods imported there from US, even India has decided to counter the US tariff. India ...