Oil prices fell more than 3%
Oil prices fell more than 3%, as new Covid-19 lockdown measures in China stoked concerns about rising inflation and interest rates, dampening fuel demand.
Closing the session on September 1, Brent crude oil fell $3.28, or 3.4%, to $92.36 a barrel and West Texas Intermediate crude fell $2.94, or 3.3%, to 86. 61 USD/barrel.
Oil demand in the Western world, as well as in China, is slowing, while supply is gradually increasing, largely due to the US shale boom, said Norbert Rucker analyst Julius Baer.
Factory activity in Asia slowed in August 2022, as China’s zero-Covid restrictions and cost pressures hit businesses, overshadowing the region’s recovery prospects.
According to a Reuters survey, OPEC oil production in recent months reached 29.6 million bpd (bpd), while US oil production in June 2022 increased to 11.82 million bpd. Both grades hit their highest levels since April 2020.
Natural gas prices increase
U.S. natural gas prices rose, despite higher-than-expected inventories, as the focus shifts to warmer weather that will require more fuel to cool homes and businesses.
The price of natural gas for the October 2022 term on the New York Stock Exchange increased by 13.5 US cents, or 1.5%, to $9,262/mmBTU.
Gold price falls below $1,700/ounce, silver is at its lowest in more than 2 years
Gold prices fell below $1,700 an ounce — for the first time — since July 2022, as a stronger dollar and expectations of higher interest rates erode gold’s appeal as a safe-haven asset.
Spot gold on the LBMA fell 0.8% to $1,696.76 an ounce – the lowest since July 21, 2022 earlier in the session, and December 2022 gold on the New York Stock Exchange fell 1% to 1,709. ,3 USD/ounce.
The dollar rose to a 20-year high, after data showed that US manufacturing growth in August 2022 and the number of US jobless claims last week fell, which should boost the Federal Reserve. The US Federal Reserve raised interest rates sharply.
At the same time, silver fell 1% to $17.99 an ounce, having hit a more than two-year low.
Aluminum lowest price 16 months, tin lowest 19 months
Aluminum prices hit a 16-month low, while other base metals also fell, on concerns about weak demand following a slowdown in economic data in top metal consumer China, amid new Covid-19 restrictions.
Aluminum prices on the London floor fell 2.5% to $ 2,300 / ton – the lowest since April 2021.
A private survey shows that factory activity in China fell in August 2022 – the first time – in three months, while nearly 70 Chinese cities reported a drop in new housing prices, the most since since the beginning of the Covid-19 pandemic.
Tin prices on the London floor fell 8.3% to $20,895 per tonne – a 19-month low.
Iron ore and steel prices both fell
Iron ore prices in Dalian fell, pressured by fears that new Covid-19 restrictions and difficulties in the real estate sector in China will reduce iron ore demand.
Iron ore futures for January 2023 on the Dalian bourse fell 1.2% to 675.5 yuan ($97.88/ton).
At the same time, the price of iron ore for October 2022 on the Singapore Exchange decreased by 4.3% to 96.25 USD/ton.
On the Shanghai Stock Exchange, rebar prices fell 1%, hot rolled coil fell 0.6% and stainless steel fell 0.4%.
Covid-19 restrictions have disrupted production and demand, along with a weakening real estate sector in China, a deteriorating global economic outlook as central banks raise interest rates. interest rate to cool inflation, raising concerns about falling metal demand.
Rubber price in Japan is lowest in 10 months
Rubber prices in Japan hit a near 10-month low, following a trend of lower rubber prices in Shanghai, as weak Chinese and domestic production data raised concerns about falling demand.
The price of rubber for February 2023 on the Osaka floor fell 7.3 JPY, or 3.2%, to 218.8 JPY ($1.57)/kg, closing the session at the lowest level since mid-November/ 2021.
At the same time, the price of rubber for January 2023 on the Shanghai floor decreased by 255 CNY to 12,345 CNY (1,789 USD)/ton.
China’s factory activity fell in August for the first time in three months, amid weak demand, while power shortages and the new coronavirus outbreak disrupted production. .
At the same time, Japan’s manufacturing activity in August 2022 grew at the lowest rate in nearly a year, as businesses were adversely affected by the global economy and demand from China and South Korea fell.
Coffee prices fall
Arabica coffee prices on the ICE exchange fell, pressured by a strong dollar, but concerns about dry weather in the top producing country – Brazil – limited the decline.
The price of arabica coffee for December 2022 on the ICE floor fell 2.75 US cents, or 1.2%, to 2,325 USD/lb, down from a 6-month high ($2,4295/lb) in the previous week. .
At the same time, the price of robusta coffee for November 2022 on the London floor decreased by 0.8% to 2,231 USD/ton.
Sugar prices increase
Crude sugar futures for October 2022 on ICE rose 0.6% to 17.99 US cents/lb, after falling sharply to 17.75 US cents/lb.
At the same time, the price of white sugar in October 2022 on the London floor increased by 8.3 USD, or 1.5%, to 559.1 USD/ton.
Wheat, corn and soybean prices all fell
Wheat prices in Chicago fell more than 4%, corn and soybeans both fell, on fears of a global recession, along with the US Midwest harvest approaching.
On the Chicago Mercantile Exchange, wheat futures December 2022 fell 37-1/4 US cents to 7.94-1/4 USD/bushel. The price of corn for December 2022 fell 12-1/2 US cents to $6.58/bushel and November 2022 soybean futures fell 27-3/4 US cents to $13.94-3/4. /bushel.
Indian rice prices highest in more than a year, Thailand slightly decreased
India’s export rice prices rose to a more than 1-year high, boosted by strong demand, amid concerns over possible export restrictions on certain staples.
In India – the top rice exporter, the price of 5% broken rice increased to $379-387/ton – the highest since June 2021, from $366-372/ton a week ago – for the second week. 3 in a row.
Himanshu Agarwal, managing director of Satyam Balajee, India’s largest rice exporter, said the price of parboiled rice in India increased, as a tender from Bangladesh could force a large quantity of rice to be imported during the year. now due to crop failure. At the same time, India is considering whether to limit exports of 100% broken rice, when the area under rice cultivation has decreased due to lack of rain.
In Thailand, the price of 5% broken rice decreased slightly to $415-416/ton, compared with $416-420/ton a week ago.
Palm oil price lowest in nearly 1 month
Palm oil prices in Malaysia fell to their lowest level in nearly a month, pressured by weaker prices of other vegetable oils and expected supply increases as the peak harvest season begins.
Palm oil futures for November 2022 on the Bursa Malaysia exchange fell 154 ringgit, or 3.72 percent, to 3,990 ringgit ($890.82) a tonne – the lowest since August 5, 2022.
The palm oil market is under pressure from a weak commodity market and is expected to increase sharply, along with inventories reaching more than 2 million tons.
Prices of some key items on the morning of September 2:
