Price stable oil
Oil prices ended the session almost unchanged from the previous session, although US crude inventories fell sharply. Investors are considering assessing the oil demand outlook in the context of the number of Covid-19 infections worldwide continuing to increase.
At the close of 5/5 session, Brent oil price increased slightly by 8 US cents to 68.96 USD / barrel; West Texas US oil (WTI) decreased slightly 6 US cents to 65.63 USD / barrel.
During the session, both types of oil prices reached their highest level since mid-March before turning down. The $ 70 / barrel mark has been the limit for the oil market since March, as investors don’t want to push prices higher as the number of Covid-19 infections in many parts of the world is still increasing. .
The US Energy Information Administration said the country’s crude inventories fell 8 million barrels last week, far exceeding the forecast of a 2.3 million barrel drop. The country’s oil exports also rose to 4.3 million barrels, the highest since March last year, and refined oil output also the highest since that month.
Gold rose again
Gold price recovered slightly in the last session because the USD and US bond yields both fell.
Accordingly, spot gold price increased by 0.3% to 1,784.23 USD / ounce. The previous session, spot gold price decreased by 0.8%. Gold futures in June in the last session also increased by 0.5% to 1,784.3 USD / ounce.
Gold prices fell in the previous session following comments from US Treasury Secretary Janet Yellen that the US may need to do something to cool down the country’s economy – caused by huge economic stimulus packages. But shortly after that statement, she added that she did not see the risk of inflation rising in the US. Therefore, gold traders believe that in fact, it is unlikely that the US Federal Reserve (Fed) will raise interest rates at the moment.
The yield on US Treasury bonds fell from the highs, while the USD ended the session also backed off from a 2-week high.
Copper peaked at 10 years due to high demand expectations
Copper prices rose to a record high in the past 10 years after some of the world’s largest economies showed signs of recovery after a period of crisis by Covid-19, sparking expectations that demand would increase rapidly.
Copper metal futures contract for delivery after 3 months on the London floor last session at times reached 10,040 USD / ton, the highest since February 2011, when the price reached a record 10,190 USD / ton. However, at the close of the transaction, the price decreased slightly by 0.4% from the previous session, to $ 9,922 / ton.
Saxo Bank analyst Ole Hansen said: “It is very reasonable for investors to buy when the copper price hits the critical technical level of $ 10,000 / ton,” and said consumers can pause buying if copper prices increased further.
The increase in copper prices was mainly due to the excitement of the market due to the news that major economies reopened and speculative buying activities.
The US economy was growing at its fastest pace since the early 1980s, while UK manufacturing activity rose the fastest in nearly 27 years last month.
Corn surpassed its 8-year high, and wheat and soybeans also rose
The US corn price last session continued to rise to the highest level in more than 8 years due to concerns about tight global supply and strong demand.
Ending the session, the reference price of corn (July delivery) increased 11-3 / 4 US cents to 7.08-1 / 2 / bushel, during the session at 7.12 USD, the highest since March 2013. Corn futures contract in December also increased 24-1 / 4 US cents to 6.04-3 / 4 / bushel at the end of the session, after sometimes reaching 6.06-1 / 2 USD / bushel.
The sharp increase in the price of corn and other grains has led to the increase in production costs of ethanol made from corn and animal feed.
The increase in corn prices was also the reason for the increase in wheat and soybean prices. Session 5/5, wheat ended up 17-3 / 4 US cents to 7.44-1 / 2 USD / bushel; July soybean futures also rose 4 US cents; November soybeans – which represent the season to be harvested in the Fall – rose 19-1 / 2 US cents to 13.82-3 / 4 USD / bushel.
Coffee peaked for many years
Prices for arabica and robusta coffees both rose to multi-year highs due to optimism in the financial markets, amid limited supplies.
Ending the session, arabica coffee futures in July increased by 9.5 US cents (6.8%) to $ 1.4985 / lb, the highest level since February 2017. Robusta coffee similar term also increased by 64 USD (4.3%) to 1,538 USD / ton, the highest since March 2019.
Hedge funds want to buy a lot of goods, but producers sell them in moderation because coffee growers in Brazil are concerned about a decrease in output this year.
A recent report by coffee experts such as Starbucks shows that demand for this product is improving as COVID-19 vaccination progresses.
Commerzbank said, in contrast to Arabica, the robusta harvest in Brazil is expected to reach 20.7 million bags. The bank said: “Robusta prices in the fourth quarter will be at $ 1,300 / ton”.
The road goes up
The increase in sugar prices due to supply concerns in the context of rising oil prices made the Brazilian sugarcane processing industry to transfer part of the raw material to ethanol production.
Ending the session, the price of raw sugar in July increased 0.41 US cent, equivalent to 2.4%, to 17.53 cents / lb.
“Although we do not expect prices to increase steadily as they did in February, we are raising our fourth quarter price forecast (raw sugar) to 16 US cents / lb”, by: supply) has risen and high oil prices could lead to a shift of a large proportion of sugarcane to (production) of ethanol In addition, Brazil’s sugarcane (output) forecast has been revised downward due to dry weather. The term is extended, ”said Commerzbank, a bank.
However, the sugar and ethanol consulting firm, Datagro, believes that the global sugar supply balance is reversing from a shortage in 2020/21 to a surplus in 2011/12, despite Brazil’s output slump. reduction. The reason for this is the recovery in Thailand and the good harvest in India.
Last session, the price of white sugar in August increased by 11 USD (2.4%) to 460.80 USD / ton.
Philippines reduced quota and increased import tax on pork
The Philippine Department of Agriculture yesterday said May 5 that the country would adjust its pork import plan this year, whereby the import quota would be reduced to 254,210 tons from the 404,000 tons given previously, while also raising the import tax. export of this item. However, this plan still needs to be approved by President Duterte.
Accordingly, the import tax on pork in the quota will be raised to 10%, in addition to the quota to 20% for imported meat in the first 3 months, up from 5% and 15% respectively raised previously. In the remaining 9 months, tariffs will be set at 15% on quota imported meat and 25% for non-quota imports, up from previously approved tariffs respectively. 10% and 20%.
Philippine pork production in 2020 will decrease by 20%, to another 20% in the first quarter of 2021.
Prices of some key items on the morning of May 6
