Oil price increases
World oil prices increased in the session last night. At the end of this session, Brent oil rose 17 US cents to 51.8 USD / barrel, West Texas America oil (WTI) increased by 12 US cents to 48.52 USD / barrel. Generally in December, the prices of 2 types of oil increased by about 9%.
Investors are betting on prospects of a global economic recovery in 2021 when Covid-19 vaccine continues to be deployed on a large scale in many countries, economic support packages, loosening fiscal policies … and especially a series of consecutive positive economic data broadcast in recent years.
According to the Organization for Economic Cooperation and Development, the rapid deployment of Covid-19 vaccine could boost the world economy to grow by up to 5% in 2021.
Some other factors also supported the increase in oil prices in the last session, that is the demand for crude oil tended to increase when European countries entered the winter peak; Many countries such as China, India, the world’s leading crude oil consuming countries, increase the import of crude oil, increase the operating capacity of the refineries ….
Although oil prices have rebounded in the past 2 months, the fact that countries around the world once again closed against the Covid-19 variant has increased pressure on this market, making the market outlook become worse. so gloomy. In addition, the oil market started to be under pressure to reduce prices due to the possibility that OPEC + could continue to increase production by 500 thousand barrels / day as proposed by Russia since February 2021.
Gold rose
Gold prices steadily increased in the last trading session due to the depreciation of USD, and overall in December increased by nearly 4% due to the expectation of governments to increase stimulus measures against Covid-19.
At the end of the last trading session of 2020, the spot gold price was steady at 1,892.97 USD / ounce, while the gold futures in February 2021 increased 0.1% to 1,895.10 USD / ounce.
Tai Wong, head of BMO’s base metals and precious metals derivatives trading, said the Federal Reserve is likely to continue to stimulate further economic growth until 2022. , and Democrats will work hard to find ways to increase spending. “The dollar will depreciate, and gold will have a chance to continue to rise,” Wong said, although the effectiveness of the vaccine will limit the rise in gold prices.
Copper fell
Copper prices fell during the last trading session of 2020 as investors suspect that prices could continue to rise further in 2021 after having soared in 2020.
At the end of this session, copper price futures for 3 months delivery on the London floor fell 1.1% to $ 7,764 / ton. Generally in December, copper prices inched up slightly by 1%.
Corn and soybeans 6.5 years highest, wheat decreased
US corn futures, which ended December 31, increased their most in a decade after Argentina restricted imports amid dry weather threatening harvests in South America, pushing up prices. to the highest level of 6.5 years.
Soybeans also soared to a 6-and-a-half-year high last night for the same reason that the global supply chain would be tight. Wheat alone fell in this session after leaving its six-year high.
Specifically, after increasing for 14 consecutive sessions, corn price in March increased by 9-1 / 2 cents to $ 4.84 / bushel in the last session, the highest level since May 16, 2014; soybeans for the same period increased 10-1 / 2 cents to 13.11 USD / bushel, the highest since June 23, 2014; Wheat futures in March 2020 fell 1/4 US cent to 6.40-1 / 2 USD / bushel, after reaching a 6-year high in the previous session (6.44-1 / 2 USD / bushel) .
Generally, in December 2020, corn prices increased by 17%, while wheat and soybeans both increased by about 13%.
Argentina’s Ministry of Agriculture announced it would suspend corn exports until February 28, boosting buying activities, amid a tight supply of corn and soybeans.
Raw sugar is 5 weeks highest
Raw sugar prices ended 2020 at the highest level in 5 weeks due to weaker USD. March futures increased 0.21 US cents (1.4%) to 14.49 US cents / lb, after reaching 15.53 US cents at one point. White sugar delivered in the same period increased by 2.5 USD (0.6%) to 420.9 USD / ton, for the whole year 2020, it will increase 17.2%.
Concern that the output of Thailand – a major sugar exporter – will decline also contribute to the increase in sugar prices. The country begins to harvest sugarcane, later than usual, and yields may be affected by drought.
Coffee increased
Arabica coffee futures in March increased 2.85 cents, equivalent to 2.3%, to $ 1.2825 / lb; For the whole year, it decreased slightly by 1.1% due to the bumper output of Brazil, although the output of this country next year is expected to decrease slightly. Robusta coffee delivered in the same term increased 10 USD (0.7%) to 1,386 USD / ton, for the whole year almost unchanged.
China increased sales of pork stock for the holiday season
China’s Ministry of Commerce spokesperson, Gao Feng, said the country will increase the sale of pork from national stocks to boost supplies during the festival season (from now until the Lunar New Year).
The world’s largest pork consumer sold tens of thousands of tons of stored frozen pork in December to stave off the ongoing rise in meat prices.
Rubber increased
Rubber prices on the Shanghai floor increased in the last session of 2020, according to which May contract increased 165 CNY ((about 25.29 USD) to 13,900 CNY / ton.
Prices of some key commodities in the morning of January 1, 2021
