Oil prices continue to rise
Oil prices rose but held steady for a week, helped by a falling Russian export outlook, overshadowing rising US crude inventories and concerns about global economic activity.
Closing the session on February 24, Brent crude oil increased 95 US cents, or 1.2%, to 83.16 USD/barrel. West Texas Intermediate crude rose 93 cents, or 1.2%, to $76.32 a barrel. Earlier in the session, both oils fell more than $1 a barrel. For the whole week, both oils remained stable.
Year-to-date, Brent oil prices have fallen 15% year-on-year. Brent oil price hit a 14-year high (nearly $128/barrel) on March 8, 2022.
Natural gas prices up nearly 6%
U.S. natural gas prices rose nearly 6%, driven by forecasts of colder weather and higher-than-expected heating demand over the next two weeks.
The price of natural gas in March 2023 on the New York Stock Exchange increased by 13.7 US cents, or 5.9%, to $2,451/mmBTU. For the whole week, the price of natural gas increased by 7.7%, after falling below 2 USD/mmBTU in the session on 22/2/2023.
Gold price lowest in 8 weeks, palladium lowest in 3.5 years
Gold prices fell to an eight-week low, as the dollar and US Treasury yields strengthened, as the market braced for more rate hikes by the US Federal Reserve in the coming months.
Spot gold on the LBMA fell 0.6 percent to $1,810.89 an ounce and hit its lowest level since December 30, 2022 ($1,808.7 an ounce) and gold futures April 2023 on the New York Stock Exchange. York fell 0.5% to $1,817.7 an ounce.
US inflation rose sharply, while consumer spending rebounded to 1.8% in January 2023, reinforcing expectations that the Fed will keep raising interest rates.
Gold prices were under downward pressure as the dollar index rose to a 7-week high, along with 10-year US Treasury yields rose for the fifth consecutive week.
Palladium fell 2.7% to $1,386.93 an ounce, after hitting its lowest since August 2019 ($1,363.52 an ounce).
The lowest copper price in nearly 7 weeks
Copper prices fell to a near seven-week low, as the dollar strengthened and demand in top consumer China remained weak.
Copper prices on the London bourse fell 2.1% to $8,718 a tonne, after touching $8,705 a tonne – the lowest since January 9, 2023. For the whole week, copper price decreased by 3%.
The dollar rose to a seven-week high, making copper more expensive for buyers of other currencies, as strong US economic data and high inflation raised expectations for US interest rates. will remain high in the long run.
Iron ore and steel prices fall
Iron ore prices on the Dalian and Singapore exchanges fell, as demand for steelmaking materials fell, but iron ore prices still had a rising week.
Iron ore futures for May 2023 on the Dalian bourse fell 0.2 per cent to 909.5 yuan ($131.19) per ton. For the whole week, iron ore prices increased by nearly 3%.
At the same time, the price of iron ore for March 2023 on the Singapore Exchange was at $128.5/ton, down 1% in the previous session. However, for the whole week, iron ore prices increased by 1.6%.
Major iron ore producers such as BHP Group BHP.AX and Rio Tinto RIO.AX, RIO.L said, China’s iron ore demand rebounded after Beijing lifted Covid-19 restrictions and introduced support measures for troubled real estate developers.
On the Shanghai Stock Exchange, rebar prices fell 0.9%, hot rolled coil fell 0.3%, coil fell 0.1% and stainless steel fell 0.4%.
The first weekly increase in rubber prices in 4 weeks
Rubber prices in Japan fell in line with the downward trend of rubber prices in the Shanghai market, but had the first increase in 4 weeks.
The price of rubber for August 2023 on the Osaka Exchange (OSE) fell JPY 0.7, or 0.3%, to JPY 225 (USD 1.67)/kg, after reaching the highest level since January 9. 2023 (227.6 JPY/kg) in the beginning of the session.
At the same time, the price of rubber for the term of May 2023 on the Shanghai floor decreased by 30 CNY to 12,590 CNY (US$1,817)/ton.
The price of rubber for the term of March 2023 on the Singapore Exchange decreased by 0.7% to 138.6 US cents/kg.
Coffee prices fall
The price of arabica coffee for May 2023 on ICE floor fell 2 US cents, or 1.1%, to 1,877 USD/lb, after hitting a 4-month high ($1.9415/lb) this week. For the whole week, the price of Arabica coffee increased by 1%.
At the same time, the price of robusta coffee in May 2023 on the London floor decreased by 10 USD, or 0.5%, to 2,151 USD/ton.
Sugar prices fall
The price of raw sugar for March 2023 on the ICE floor fell 0.3 US cents, or 1.4%, to 21.28 US cents/lb. For the whole week, the price of raw sugar decreased by 0.6%.
At the same time, the price of white sugar in May 2023 on the London floor decreased by 12.7 USD, or 2.2%, to 562 USD/ton.
Corn, wheat and soybean prices all fell
Corn prices on the Chicago Mercantile Exchange fell to a six-week low, along with wheat hitting a more than four-week low, on concerns about competition for the global export business.
On the Chicago Mercantile Exchange, corn futures in March 2023 fell 10 US cents to 6.49-1/4 USD/bushel – the lowest since January 10, 2023. Wheat futures for March 2023 fell 28-3/4 US cents to 7.21-3/4 USD/bushel – the lowest since January 23, 2023. Year-to-date, wheat prices are down 18% and corn prices are down 5% year-on-year. Soybean futures for March 2023 fell 8 US cents to 15.19-1/4 USD/bushel – the lowest since February 15, 2023.
The US faces competition for export sales from cheaper supplies in Brazil, while traders mostly face crop failure in Argentina due to drought.
Palm oil prices rose for the third week in a row
Palm oil prices in Malaysia fell, but posted a third consecutive weekly gain, underpinned by concerns about tight supply amid improved demand.
Palm oil futures for May 2023 on the Bursa Malaysia exchange fell 32 ringgit, or 0.76%, to 4,203 ringgit ($948.12) a tonne, after hitting a seven-week high in the previous session. For the whole week, palm oil prices increased by 1.7%.
Prices of some key items in the morning of February 25
