Domestic Commodity Futures Open Lower as Energy and Chemical Sectors Face Sharp Declines

China’s domestic commodity futures market experienced a broad-based downward trend at the opening bell, with energy and chemical products suffering particularly heavy losses. Notably, low-sulfur fuel oil (LU) registered a decline of over four percent, capturing the attention of traders and market analysts who monitor the sector for sudden shifts in supply and demand.

The broader commodity landscape reflected widespread selling pressure, driven largely by a cooling of geopolitical risk premiums that had previously inflated prices. Energy sector benchmarks saw extensive heavy setbacks, with crude oil futures plunging by more than six percent and falling below the key psychological threshold of 700. Market participants noted that the retreat in geopolitical tensions has rapidly drained the speculative premium out of energy contracts.

At the same time, agricultural and industrial commodities also faced downward pressure. Hog futures tumbled by over four percent, hitting a fresh phase low due to a supply and demand dynamic characterized by loose supply conditions. While certain commodities like apples previously experienced an oversold rebound and precious metals such as silver faced steep corrections earlier in the weekly cycle, the prevailing market sentiment remains cautious as traders navigate shifting macroeconomic fundamentals.

Sources: Cailian Press

Aggregated summary. Original: 财联社电报