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China's foreign exchange reserves rose to $3.0617 trillion in November from $3.0531 trillion in October, which was above expectations. Bond and stock market inflows likely offset reserve use for yuan intervention.
ING expects further inflows if investor confidence improves.
Rising reserves and capital inflows support the yuan and reduce pressure on Chinese importers, which can sustain demand for feed ingredients. The effect on commodity prices is indirect.
think.ing.comDec 7, 2018After 17 past neutral report events, Chinese Yuan (CNY per USD) moved a median -0.0% over 5 sessions (47% higher; middle half -0.2% to +0.4%), and -0.8% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
