Greek deal sees boost for primary commodities


Copper, aluminium, oil and other commodities have risen on the news that the European Union and the International Monetary Fund has agreed a bailout deal for Greece.

In a meeting involving eurozone finance ministers, a rescue package worth €130 billion (£108 billion) was thrashed out. Under the agreement, private creditors to Greece agreed to take on deeper losses meaning they will increase their losses on Greek bonds to 53.5 per cent of their nominal value from the previously agreed 50 per cent.

While Greece will also implement further austerity measures to ensure it is able to receive the additional funds.

As a result of this, three month copper rose 1.6 per cent on the LME this morning to $8,364 (£5,293), while aluminium was up 1 per cent to $2,201 (£1,393) and lead increased by 1.7 per cent to $2,085 (£1,319).

The S&P GSCI index of 24 commodities also moved up 1 per cent to 695.54 – its highest level since 1 August last year.

Brent crude oil for April was at $120.33 – an increase of over 1 per cent.  

Cotton was up a touch to 91.85 and continues a recent rally. However, with a recent report showing good supplies of cotton worldwide, as things stand it is unlikely that prices will hit the levels seen last year when there was a severe shortage of the material.