Oil up more than 1%
Oil prices rose more than 1% after U.S. crude inventories fell more than expected amid high fuel demand, overshadowing news that OPEC+ had agreed to increase oil production to partially offset a decline in Russia’s output. .
Oil prices were also supported by the EU’s sixth package of sanctions against Russia, including an immediate ban on new insurance policies for Russian tankers and the phasing out of existing contracts in the coming months. 6 months.
Closing session 2/6, Brent crude oil rose 1.1% or 1.32 USD to 117.61 USD/barrel, while WTI oil increased 1.61 USD or 1.4% to 116.87 USD/barrel.
U.S. crude and fuel inventories fell last week, as demand continued to outstrip supply, with commercial crude inventories falling even as more strategic inventories entered the market.
US crude inventories fell by 5.1 million barrels, compared with analysts’ expectations for a 1.3 million-barrel drop in a Reuters poll.
During the session, oil prices fell as Saudi Arabia and other OPEC + countries agreed to increase oil production to compensate for reduced production from Russia to curb oil price increases and inflation and clear the way for the President’s visit to Riyadh. America Joe Biden.
OPEC+ has agreed to increase production by about 650,000 bpd over the next two months from the current increase of 432,000 bpd.
The market was also supported by Chinese demand when the Covid-19 blockade was lifted.
Russian production has fallen by about 1 million bpd following Western sanctions.
Gold price up more than 1%
Gold prices rose more than 1% as the dollar fell and data showed US private-sector jobs increased less than expected last month.
Spot gold rose 1.2% to $1,868.41 an ounce, having previously climbed to a one-week high. US gold for August futures closed up 1.2 percent at $1,871.4 an ounce.
The USD index fell 0.7 percent away from a one-week high hit in the previous session.
U.S. private sector jobs rose 128,000 last month, compared with a forecast for a 300,000 increase.
The Fed is trying to reduce labor demand as it tries to contain high inflation, which the Fed needs to do without pushing the unemployment rate too high.
Shanghai copper prices rise
Shanghai copper prices rose as the lifting of Covid-19 restrictions in China boosted demand recovery.
The July contract in Shanghai closed up 0.7 percent at 72,130 yuan ($10,803.56) a tonne, in a quiet session as the London Metal Exchange was closed for a holiday.
Copper’s upside momentum was limited as the USD hit a 3-week high against the JPY early in the session.
RBC Markets analysts say the global copper supply will outpace demand over the next two years, supported by several major upcoming projects.
China iron ore hits 6-week high
China’s iron ore prices rose for a fifth session in a row to their highest in more than six weeks as steel mills replenished inventories ahead of the holiday and ramped up production to gradually recover from the Covid-19-hit economy. 19.
Galaxy Futures said steelmakers will suffer bigger losses if production is halted, and are now adding production and stockpiling ahead of the holiday season.
Iron ore for September futures on the Dalian Commodity Exchange closed up 3.8 percent at 936 yuan ($140.19) a tonne, the highest since April 19.
On the Singapore Exchange, July futures rose 4.8% to 141.8 USD/ton.
However, the upside momentum in iron ore prices may be limited. Steel production constraints remain, while easing regulations on the housing sector still does not solve the problem.
Steel prices in Shanghai closed also increased. Bar steel for October term stood at 4,788 CNY/ton, up 2% compared to the previous session. Hot rolled coil increased 1.8% to CNY 4,879/ton, stainless steel increased 1% to CNY 18,495/ton.
Japanese rubber increased
Japanese rubber prices rose for a sixth session in a row as a weak JPY made currency-denominated assets cheaper for buyers in other currencies, while the lifting of blockade in Shanghai raised hopes of demand. demand for natural rubber strengthens.
The November rubber contract on the Osaka exchange closed up 1.7 yen, or 0.7%, to 256.5 yen ($1.97) per kilogram after hitting its highest level since April 22. at 257.3 JPY/kg.
Rubber for September term at the Shanghai futures exchange closed up 160 CNY to 13,380 CNY ($2,005.16)/ton, in the session having reached the highest since April 21 at 13,385 CNY/ton.
Asian rice prices rise on strong demand
Rice export prices in major Asian hubs rose this week supported by strong demand, while Bangladesh began cracking down on illegal hoarders as domestic prices soared.
India’s 5% broken parboiled rice was offered for sale at $355 to $360 per tonne compared with $350 to $354 per tonne a week ago.
An exporter in the southern state of Andhra Pradesh said customers turn to India because the price is more competitive compared to supplies from Thailand and Vietnam.
India has no plans to restrict rice exports as it already has enough reserves and the domestic price is lower than the support price set by the state.
In Bangladesh, the government launched a campaign against rice hoarders amid a sharp increase in domestic prices during the peak season. Domestic prices have risen more than 5% this week, which officials attribute to traders hoarding to create a fake crisis in order to make a profit.
Thailand’s 5% broken rice price was offered at $455-460/ton compared with $450/ton a week ago, due to slight increase in domestic and international demand.
The price of Vietnam’s 5% broken rice was sold at $420-425/ton, up from $415-$420/ton a week ago.
Vietnam exported 2.86 million tons of rice worth $1.39 billion in the first five months of this year, up 10.3% in volume but down 1% in value over the same period last year.
Arabica coffee drops after hitting 3-month high
July arabica coffee futures closed down 1.2 US cents or 0.5% at $2.3825/lb, after rising to the highest since February at $2.42/lb.
Dealers say the market is still supported by limited supplies from Brazil and Central America.
Guatemala’s arabica coffee price traded at a premium of 82 US cents, the highest since 2010.
Exports from Honda fell 23% in May, exports from Costa Rica fell 35%.
In Vietnam, coffee prices increased on June 2 compared to a week ago, due to the increase of robusta prices on the ICE floor and limited domestic supply.
Farmers in the Central Highlands sold coffee at 41,400 – 43,100 VND (1.78 – 1.86 USD)/kg compared to 40,600 – 41,700 VND a week ago.
Traders have offered to sell grade 2 robusta with 5% black and broken beans at a discount of $230-240/ton, compared with a week ago at $250-$270/ton.
Coffee exports from Vietnam are estimated to increase 24.2% in the first 5 months of this year compared to the same period last year, reaching 889,000 tons.
In Indonesia, traders in Lampung province offered Sumatran robusta coffee at a discount of $170 to $180 against the July contract and $250 a tonne from the September futures on ICE London.
Prices there fell due to new supply from the ongoing harvest, although exporters are facing stiff competition from domestic buyers.
Falling line
Raw sugar for July delivery closed down 0.09 US cents or 0.5% at 19.35 US cents/lb.
Additional Indian exports will hurt the market, which could reach 10 million tonnes this season.
There are also rumors that fuel distributors in Brazil are delaying ethanol purchases in anticipation of a tax cut that could lower fuel prices in the country.
Falling energy prices in Brazil could cause mills to produce less ethanol and produce more sugar.
Wheat, soybean increase
Chicago wheat rose after hitting a two-month low as hedge funds eased liquidations and supply tensions continued despite talks to reopen Ukraine’s ports.
Egypt’s large purchase of flour and a report that the US government may lift regulations on ethanol blending have supported the grain market.
Soybeans are strong because of limited US export demand and supply.
CBOT wheat contract rose 17 US cents to 10.58-1/4 USD/bushel.
CBOT corn for July delivery fell 22-1/4 US cent to 7.31-1/4 USD/bushel.
Soybeans rose 39 US cents to 17.29-1/4 USD/bushel.
Prices of some key items in the morning of June 3
