Oil prices cool down
Oil prices turned lower as investors sold to take profits after the previous two sessions amid concerns about a rapid increase in US interest rates. However, the decline was limited by expectations of a strong economic recovery, thereby boosting oil demand, while supply in the market was tight.
Ending the session on January 13, the West Texas Intermediate (WTI) oil price fell 52 US cents, or 0.6%, to $82.12 per barrel, after gaining 5.6% in the past two days. Similarly, Brent crude also fell 20 cents, or 0.2%, to $84.47 a barrel. The grade was up 4.7% from Tuesday and Wednesday.
Chicago State Reserve Chairman Charles Evans said on January 13 that four rate hikes may be needed by 2022 if inflation does not improve quickly enough, adding that because inflation has already At a persistently high level, the Fed had to act faster than expected.
Gas down 12%
US natural gas prices fell 12% in the last session, losing almost all of the 14% gain in the previous session, due to the forecast that the weather will be less cold and heating demand will decrease this week and next week. than expected.
Specifically, the price of gas for February futures in the US on Thursday (January 13) fell 58.7 cents, or 12.1%, to $4,270 per million British thermal units (mmBtu). On Wednesday (January 12), the contract spiked to its highest close since November 26, its biggest intraday gain since September 2020, after the weather agency forecast The weather in late January will be very cold.
Gold price falls
Gold prices fell as US Treasury yields rose. Spot gold fell 0.3 percent to $1,820.71 an ounce, and February gold futures fell 0.3 percent to $1,821.4.
Expectations surrounding a Fed rate hike have lifted US Treasury yields, potentially increasing the opportunity cost of holding gold, a metal that doesn’t yield as much as interest rates.
Meanwhile, the number of Americans filing new jobless claims in the first week of January rose to an eight-week high.
Ed Moya, senior market analyst at brokerage OANDA, said the overall reaction of the gold market to the US producer price inflation data just released has been rather muted because of that. Doesn’t change the story of what the Fed is likely to do in March. Rising interest rates will reduce the attractiveness of gold.
Copper held at nearly 10,000 USD/ton
Copper prices fell again in the last session, but still close to the highest level in 3 months, a day after the previous strong increase due to the weak USD and concerns about supply shortage.
Three-month copper futures on the London Metal Exchange (LME) this session fell 1.3% to $9,932 a tonne. In the previous session, January 12, the price increased by 3.5%.
Used in the energy and construction sectors, copper prices are up 25% in 2021 and 26% in 2020. Many analysts expect the transition from fossil fuels to electrification to accelerate demand for this red metal.
Corn, soybeans drop as weather forecast improves
U.S. corn and soybean prices fell on forecast that drought-stricken growing areas in South America (Argentina and Brazil) would soon receive rain, which would help limit crop damage.
Corn prices traded at the Chicago Board of Trade ended the session down 11-1/2 cents at 5.87-1/2 USD/bushel, the lowest level since 3/1; soybeans also fell 22 cents to 13.77-1/4 USD/bushel.
Reduced coffee
Coffee prices fell sharply in the past session, with robusta hitting the lowest level since December 1, as there are signs that the tight supply situation has eased.
Robusta coffee for March term this session fell $ 45, or 2.0%, to $ 2,237 / tonne at the end of the session, before that price hit a 1-1/2-month low of $2,231.
Agents said that robusta coffee from Vietnam, the world’s leading robusta producer, has finally arrived at ICE-certified warehouses.
Arabica coffee for March delivery also fell 3.85 cents, or 1.6%, to $2.37/lb.
Cocoa peaks in 2.5 months
London cocoa for March delivery rose £26, or 1.5%, to 1,733 lb/mt at the close, hitting a 2-1/2-month high at one point in the session. 1,742. On the New York Stock Exchange, cocoa for the same term for March delivery ended 1.6% at $2,597/ton, in some sessions it reached $2,629/ton.
It is expected that the demand for raw materials for chocolate production will recover quickly, while the supply of this crop is expected to decrease.
Iron and steel fluctuate strongly
Iron ore futures in China fell at the end of the session, after rising sharply in the middle of the session, as exports from major miners fell and concerns about short-term demand for raw materials remained. steel.
Iron ore exports from Australia and Brazil for the week ended Jan. 9 were at 22.35 million tonnes, down 5.61 million tonnes from the previous week, according to data from Mysteel.
Iron ore futures on the Dalian Commodity Exchange, for delivery in May, rose 2.4 percent mid-session to 749 yuan ($117.74) a tonne, but ended down 0.7 percent at 726 yuan. yuan/ton.
The price of iron ore imported into China, with 62% iron content, for immediate delivery at the country’s seaport increased by $3 to $132 a tonne on Wednesday (January 12), according to consulting firm SteelHome.
Steel also fluctuated strongly this session, with the reference contract on the Shanghai Futures Exchange closing 0.7 percent higher at 4,633 yuan a tonne. Prices of hot-rolled coil, used in cars and home appliances, edged up 0.2 percent to 4,739 yuan a tonne.
Stainless steel for February delivery in Shanghai fell 1.9% to 17,650 yuan/ton.
Coal reduced
Coal prices in China also rose at the start of the session but fell towards the end, with Dalian coking coal falling 0.9 percent to 2,305 yuan a tonne, while coking coal fell 1.9 percent to 3,106 yuan/ton.
Indonesia, the world’s largest exporter of thermal coal, has just allowed 37 coal tankers to depart after receiving approval from the authorities, the Coordinating Ministry of Investment and Maritime Affairs announced on 13. /first.
Rubber peaks in 6 weeks
Rubber futures traded in Japan rose to a six-week high as strong US inflation data was not enough to raise concerns that the country’s central bank would change its outlook on interest rates, which are already very weak. ‘hawks’, although gains were capped by weak Chinese economic data.
Specifically, the rubber contract for June delivery on the Osaka Exchange ended the session up 1.1 yen, or 0.5%, to 244.4 yen ($2.1)/kg, after a period of time. during the session touched the highest level since December 2, at 247.4 yen.
On the Shanghai futures exchange, rubber for May delivery fell 100 yuan to 14,925 yuan (US$2,346) a tonne late in the session, at one point hitting its highest level since May 2. 12, is 15,240 yuan.
Prices of some key items on the morning of January 14:
