(Bloomberg) — Earnings season is in full swing, with oil giants Exxon Mobil, Chevron and Total Energy SE set to report their first-quarter results later this week. Heavy equipment maker Caterpillar also reported financial results that could highlight the strength of the mining and construction industry.
Here are five notable charts to consider in global commodity markets as the week begins.
oil
Big Oil’s production growth will be in the spotlight this quarter as earnings stabilize and shareholders look for the industry’s next avenue to boost cash returns. Adjusted net income for the five supermajors combined in the first quarter is expected to be $28.4 billion, unchanged from the prior period, as higher refining margins offset lower oil prices and gains from gas trading. Exxon, Chevron and Europe’s Total Energy reported results on Friday, followed by Shell and BP in early May.
Silver
Silver has gotten off to a strong start this year, rising more than 20% as the white metal follows gold’s rise. Silver prices are nearing levels not seen since retail traders squeezed the market in early 2021, with $30 an ounce within range. Record industrial use, particularly from green economy applications such as solar panels, and continued supply shortages should support prices going forward, according to the Silver Association. This could lead to a big return of investors to silver-backed exchange traded funds (ETFs), pushing prices even higher.
corn
Despite talk of demand for U.S. corn after record 2023 harvest, attention has focused on the size of Brazilian corn that is nearly ready for harvest. Total supply from the world’s largest exporters will directly impact U.S. competitiveness. The size of Brazil’s crop is debatable, with the U.S. Department of Agriculture projecting much higher yields than Brazil’s state-run supplier known as Conab, but a strong harvest could lead to South America’s It could help the country maintain its position as a top grain exporter.
LNG
European demand for liquefied natural gas, which soared during the energy crisis, is likely to peak this year, according to ACER, the European Union’s energy regulator. The message will be reassuring to European Union leaders, who have been scrambling to find gas after Russia, the region’s biggest supplier, invaded Ukraine. It also means the US decision to halt new LNG export projects will not be felt as seriously as many feared. The EU now needs to figure out how to stop the last remaining liquefied fuel imports from Russia. Europe is the largest LNG importing country.
mining and construction
Caterpillar Inc.’s iconic yellow machines can be seen at mining and construction sites around the world, and the company is scheduled to report earnings on Thursday. Investors will be keeping an eye on orders and inventory details from the U.S. bellwether, along with indicators that provide insight into the health of the industries that support the global economy. The main focus will be on how Caterpillar’s dealer sales fare in a cyclical market where demand and economic growth slow, and whether sales strength in North America continues to offset weakness in other regions. Dew.
–With assistance from Doug Alexander and Kevin Crowley.
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