Oil turned down due to increased US fuel inventories
Oil prices fell on low fuel demand while strong weekly increases in gasoline and distillate supplies overshadowed a larger-than-expected draw in crude inventories.
Brent crude oil fell 66 cents, or 0.8%, to $77.59/barrel. During the session, both rose and fell above $1. US West Texas Intermediate crude oil futures fell 51 cents, or 0.7%, to 72.19 USD/barrel.
Gasoline stocks rose 10.9 million barrels to 237 million barrels, the highest weekly increase in more than 30 years. While crude inventories fell by 5.5 million barrels during the week, much of it reflected shipping disruptions in the Red Sea.
Dismal economic data sent prices lower early in the session. Euro zone business activity fell in December 2023. German inflation is rising, which could make an argument in favor of keeping interest rates steady for a while.
Gold increased slightly after 4 sessions of decline
Gold edged up slightly after four sessions of losses as investors awaited US nonfarm payrolls data that could influence the Federal Reserve’s interest rate path, while palladium prices slid on the outlook for demand. long term lackluster.
Spot gold rose 0.2% to $2,044.39 an ounce at 19:50 GMT, a day after hitting its lowest since December 21, 2023. US gold futures prices increased 0.4%, to 2,050.00 USD.
Thursday’s data showed US weekly jobless claims fell more than expected last week and US private employers hired more workers than expected in December 2023, showing see the enduring strength of the labor market.
Traders are pricing in about a 65% chance of a rate cut from the Fed in its March 2024 policy meeting, according to the CME FedWatch tool.
Lower interest rates reduce the opportunity cost of holding unprofitable bullion.
Palladium prices fell 3% to $1,035.49 on concerns about falling use of electric vehicles after Britain expanded sanctions on Russia’s trade in other metals.
Silver rose 0.2% to $23.00 an ounce, after hitting a three-week low earlier, while platinum fell 1.7%, to a two-week low of $954.28.
Aluminum dropped sharply due to concerns about reduced supply
Aluminum prices fell on concerns about reduced raw material supplies. 3-month aluminum futures prices on the London Metal Exchange (LME) decreased 1.2% to 2,284 USD/ton, the third consecutive decrease.
Aluminum prices hit an eight-month high last week, partly due to concerns that shipments of bauxite, a raw material needed to make aluminum, would be delayed after an explosion in major producer Guinea.
On the LME, copper fell 0.7% to $8,460.50/ton. Yangshan premium copper prices fell to 65.50 USD/ton, down 42% in just one month, showing low demand for imported refined copper into China as domestic production increases.
Nickel fell 1.8% to $16,110 a ton, zinc fell 1.9% to $2,536, tin fell 1.7% to $24,870 and lead fell 0.1% to $2,044.
Dalian iron ore continues its upward momentum
Dalian iron ore futures rose for a fourth straight session on further economic stimulus measures and additional demand from steelmakers in China, although narrowing steel margins limited gains. increase.
The price of iron ore delivered in May 2024 on China’s Dalian Commodity Exchange (DCE) ended the session up 0.3% to 1,016 yuan (142.09 USD)/ton.
China’s central bank lent 350 billion yuan to policy banks through a committed supplementary lending mechanism in December, fueling expectations of increased support for China’s ailing housing sector. country. The three major projects refer to the construction of affordable housing, the renovation of urban villages and the construction of public infrastructure for dual use.
On the Shanghai floor, rebar steel prices decreased by 0.17%, hot-rolled steel coils decreased by 0.38%, steel bars decreased by 0.52% and stainless steel lost 0.29%.
Soybeans continued to decline while corn and wheat increased
Chicago soybean futures extended recent declines as weather improved in drought-stricken areas of Brazil. March 2024 soybean futures prices decreased 9-1/2 cents to 12.67-1/2 USD/bushel after the contract hit the lowest price since June 28, 2023 at 12.65 USD . Prices have decreased by 7% since December 2023.
Wheat futures rebounded from a one-month low below $6 a bushel, while corn steadied after setting a low on Wednesday.
Steady crop yields in South America may deter buyers in world markets from shifting their export business from Brazil to the United States, analysts said.
CBOT corn futures for March 2024 increased 1-1/4 cents to end at 4.66-1/2 USD/bushel. Soft red winter wheat futures for March 2024 increased 13-1/4 cents to 6.13-1/2 USD/bushel after previously falling to the lowest price since December 1, 2023.
Arabica coffee prices decrease, sugar increases
ICE Arabica coffee futures prices returned to their three-week low of the previous session as rain improved crop prospects in top grower Brazil.
Arabica coffee futures for March 2024 decreased by 0.7 cents, equivalent to 0.4%, to 1.8555 USD/lb. Robusta coffee futures in March 2024 increased by 31 USD, equivalent to 1.1%, to 2,786 USD/ton.
Dealers said rain in Brazil had eased concerns about drought in some coffee-growing areas.
Raw sugar futures for March 2024 increased 0.23 cents, equivalent to 1.1%, to 21.08 cents/lb. White sugar futures in March 2024 increased 1% to 607.10 USD/ton.
Indonesia has set this year’s sugar import quota at 4.77 million tons for industrial use, up from a quota of 3.6 million tons in 2023.
London cocoa futures for March 2024 were little changed at 3,554 pounds/ton. March cocoa futures prices in New York increased by 22 USD, equivalent to 0.5%, to 4,260 USD/ton.
Rice India’s highest in more than 2 months
On January 4, 2024, the price of parboiled rice exported from India rose to its highest level in more than two months, following higher prices in other markets, as traders in Vietnam and Thailand took notice. Demand is improving in the face of limited supply.
Indian 5% broken rice was quoted at 510 – 517 USD/ton, the highest level since the end of October 2023, compared to 508 – 515 USD last week.
The price of Thai 5% broken rice was quoted at 650 USD/ton, down from 655-660 USD last week, when prices rose to their highest level since 2008.
While there is some demand from Indonesia and the Philippines, no new supply is expected until the next harvest.
In Vietnam, 5% broken rice was offered at 653 USD/ton, unchanged from last week.
“Supply is still low and we expect demand for Vietnamese rice to be strong this year, especially from the Philippines and China,” a trader based in Ho Chi Minh City said.
Vietnam’s rice exports in 2023 are estimated to have increased 17.4% from a year earlier to 8.34 million tons, a record high.
Preliminary shipping data shows that 44,150 tons of rice will be loaded at Ho Chi Minh City port during January 1-10, 2024, with most heading to the Philippines.
Rubber turned down due to weak demand
Japan’s rubber futures prices broke off a string of increases due to reduced buying demand from factories and weak Tokyo stock market. Rubber contract price for delivery in June 2024 decreased by 1.4 yen, equivalent to 0.55%, to 255.1 yen (1.78 USD)/kg. when the market resumes trading after the New Year holiday.
Rubber price on the Shanghai futures exchange (SHFE) for delivery in May 2024 decreased by 110 yuan, equivalent to 0.78%, to 14,025 yuan (1,959.81 USD)/ton.
Japan’s factory activity contracted at its sharpest pace in 10 months in December 2023 as output and new orders fell.
The Thai Meteorological Department has warned of heavy rain in the South from January 4-9, potentially affecting the supply of natural rubber.
Rubber futures price at the Singapore Exchange for delivery in February 2024 closed at 153.20 US cents/kg, down 0.58%.
Prices of some key products on the morning of January 5, 2024
