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(Bloomberg) -- US tariffs are on the forefront as Donald Trump returns to the White House as well as the fallout from sactions against Russian oil. Meanwhile, a potential merger would create a mining powerhouse.
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Here are five notable charts to consider in global commodity markets as the week gets underway.
Trade
With US President-elect Donald Trump returning to the White House, all eyes are on whether he’ll make good on his promise to impose wide-ranging tariffs on foreign goods. Such a measure could impact global trade, including for commodities such as oil, crops and metals. Neighboring trade partners Canada and Mexico, along with China, would be most impacted, given that combined they account for about $1.32 trillion of imports into the US.
Oil
Oil tanker rates are soaring as the Biden administration’s sanctions on Russia’s petroleum trade threaten to cut the supply of ships while forcing traders to seek alternative sources of crude. About 160 Russian oil tankers were sanctioned Jan. 10, putting about one-tenth of the current crude-carrying fleet under US measures. Benchmark tanker rates have since more than doubled, including the biggest daily gain since August, tracing a rally in shares of the world’s largest pure-play owners of the ships.
Metals
The mining industry has been undergoing a wave of dealmaking in recent years, and two of the biggest metals producers — Rio Tinto Group and Glencore Plc — have shown interest in continuing the trend, after holding early-stage talks on combining their businesses last year. Talks aren’t currently active, but a potential tie-up between the two would rank as the largest-ever mining deal given Rio is the world’s second-biggest metals producer and Glencore has a market value of about $56 billion.
Pork Bellies
US stockpiles of chilled pork bellies, the cut used to make bacon, have been trending below average. Demand for the popular breakfast meat and burger topper have been so strong that supplies could be contracting at a time inventories historically would be building in the months ahead, before the peak summer sales season. Traders will be focused on the US Department of Agriculture’s monthly cold storage report on Jan. 24 for the latest on pork demand, as well as other meats, dairy goods, poultry, fruits and vegetables.