Oil turns down 4%
Crude oil prices fell 4% in the past session due to new blockades erupting in Europe and Asia due to the rate of Covid-19 infection again increasing.
Ending the session, Brent crude oil fell 2.46 USD (3.8%) to 61.95 USD / barrel; West Texas US oil (WTI) fell 2.62 USD (4.3%) to 58.56 USD / barrel.
Many European countries have extended the blockade period to limit the spread of the Covid-19 virus. This will certainly reduce the region’s petroleum demand.
In the US, Covid-19 vaccination is deployed faster than in all other countries. However, health experts are concerned that the Spring vacation trip will boost the number of Covid-19 infections in the US again.
A stronger dollar also affects oil prices. The US dollar has risen to its highest level in 4 months against the euro as the US seems to be outperforming the pandemic better than Europe. The appreciation of USD makes the price of oil – in USD – more expensive for people buying in other currencies.
The ship trapped in the Suez Canal has not yet been released. However, up to now, that canal is no longer congested, as only a small percentage of the world’s crude oil is transported through this canal.
Gold fell because yields on US and USD bonds both increased
Gold price fell in the last session due to the increase in US Treasury bond yields while the USD also strengthened to a 4-month high, reducing the attractiveness of gold.
At the end of the session, the spot gold price dropped by 0.4% to $ 1,727.01 / ounce; gold futures in April 2021 decreased 0.5% to 1,725.10 USD.
US Treasury yields (reference) rose slightly; The dollar index rose 0.4 percent to its highest level since November 13, at 91.92.
The lowest copper is nearly 3 weeks
Copper prices fell to the lowest level in nearly 3 weeks due to strengthening USD and concerns about demand prospects in China – the world’s leading metal consumer.
At the end of the session, the price of copper for 3-month term delivery on London floor decreased by 2.3% to $ 8,775 / ton. During the session, the price dropped to only $ 8,702 / ton, the lowest level since March 5.
“Worries about Chinese demand and a strengthening dollar are two fundamental macro factors that are driving investors off,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen. interest in high-risk goods “.
Iron ore rose for the third consecutive session
Iron ore prices on the Dalian floor (China) continued to increase due to improved demand and investors less worried about the country’s steel production center will reduce production.
Concerns that world iron ore supplies could be tightened by flooding congested in Australia in the Suez Canal also support rising ore prices.
Ending the session, iron ore on the Dalian floor increased 2.7% to 1,067.50 CNY (163.36 USD) / ton. However, iron ore on the Singapore floor remained unchanged at 155.70 USD / ton.
Wheat was lowest in 3 months, soybean and corn also fell due to increased supply outlook
US wheat prices last session fell to the lowest level since the beginning of next year due to an improved global wheat production outlook and a strong dollar making US cereals less attractive in the market. world.
Specifically, the price of wheat last session on the Chicago floor fell 12-1 / 4 US cent to 6.12-1 / 2 USD / bushel at the end of the session, after falling to 6.09 USD, the lowest since from December 28, 2020.
Futures prices for corn and soybeans futures also fell in line with other commodities on US exchanges.
Accordingly, corn price in May decreased 6-3 / 4 US cent to 5.46-1 / 2 USD / bushel, soybean for same period decreased 18-1 / 2 US cent to 14.14-1 / 4 USD / bushel; soybean oil futures in May decreased 2.5 cents to 54.98 US cent / lb.
Reduced sugar
Sugar prices fell sharply in the last session due to an increase in the number of Covid-19 infections in Europe, leading to a widespread sell-off not only in commodity markets but also in financial markets.
At the end of the session, raw sugar fell 0.54 US cents, or 3.5%, to 15.09 cents / lb; white sugar decreased by 11.1 USD (2.5%) to 439.2 USD / ton.
Brazil itself – the world’s largest sugar producer – is also increasing the anti-Covid-19 social gap, reducing fuel consumption and putting pressure on domestic ethanol prices. That means that the proportion of sugarcane producing ethanol will decrease while sugarcane producing sugar increases.
Coffee has changed little
Arabica coffee futures price in May last session was stable at 1,266 USD / lb, while robusta decreased by 1 USD (0.1%) to 1,365 USD / ton.
Concerns about weak demand are weighing on the coffee market, as major coffee consuming countries like Germany and France blockade against Covid-19.
Vietnam’s coffee market this week is also bleak in the context of small reserves but low buying demand. Coffee beans in the Central Highlands are sold for 31,800-33,000 VND (1.38- 1.43 USD) / kg, lower than the 32,800-33,500 VND of the previous week; and export Robusta type 2 price plus 55-60 USD / ton compared with the reference price in London, unchanged from a week ago.
Indonesia is harvesting coffee, so the supply is increasing. The plus level of Indonesian coffee compared with the international reference price is currently from 200 to 220 USD / ton.
Lowest rubber 5 weeks
Rubber prices in Japan plummeted to their lowest level in more than 5 weeks due to fears that global demand would slow down due to the Covid-19 epidemic.
At the end of the session, August rubber futures on the Osaka floor fell 5.6 JPY (2.2%) to 251.7 JPY (2.3 USD) / kg, during the session there were only 245.1 JPY, low most since February 15. Rubber on the Shanghai trading floor (May term) also decreased 20 CNY (0.1%) to 14,215 CNY (2,176 USD) / ton.
Commodity prices on the morning of March 26
