Oil rose more than 1% on expectations of increased demand
Oil prices rose more than 1% on May 3 session due to positive economic data from the US and increased rates of vaccination against Covid-19 in the US, indicating strong recovery in demand. in the 2 largest economies in the world. However, investors remain wary that the number of Covid-19 cases in India continues to increase rapidly and OPEC + crude oil supply increases (India is the third largest fuel importer in the world).
Ending this session, Brent oil rose 80 cents (1.2%) to 67.56 USD / barrel; West Texas US oil (WTI) rose 91 US cents (1.4%) to 64.49 USD / barrel.
Gold increased by more than 1% due to weakening USD
Gold price increased more than 1% in the last trading session due to the US dollar and US treasury bond yields fell.
At the end of the session, spot gold price increased by 1.3% to $ 1,791.26 / ounce, earlier in the same session at a time it reached $ 1,797.75, the highest since April 22; gold futures in June 2021 increased 1.4% to 1,791.8 USD / ounce.
“The combination of bond yields continues to decline, dollar weakening and fiscal and monetary stimulus continues to be maintained …. all those factors continue to push up gold and silver prices. “High Ridge derivatives business manager David Meger said.
The dollar fell by 0.3% in this session, while the yield on 10-year US bonds also dropped.
Supply of copper shifts from lack to excess
The International Copper Research Organization (ICSG) said yesterday that the world copper market this year will have a surplus of 79,000 tons, and that in 2022 it will have a surplus of 109,000 tons.
The London Metal Exchange – where copper and other base metals trade – is closed on May 3 on bank holidays.
Gas increased
Spot liquefied natural gas (LNG) prices in Asia rose last week due to strong demand to replenish stocks.
Average LNG futures for June delivered to Northeast Asia last week were around $ 8.85 / mmBtu, up $ 0.2 from a week earlier. Meanwhile, the price of LNG in Europe is at 7.99 USD / mmBtu.
Research firm Rystad Energy said demand from China and Japan is very strong, as both countries replenish their reserves to prepare for next winter.
In the Atlantic region, demand for LNG is also firm, as European customers also replenish gas to their stockpiles, which have been depleted after prices hit a near-record high last winter.
Gas prices in Europe and Asia both increased, making US gas exports to Asia more attractive.
The price difference between LNG in the Asian market and the TTF reference index in Europe last week narrowed to less than 1 USD, causing gas exporters in the Atlantic to start moving towards the Asian market.
Gas supply at this time is generally stable in Australia, Qatar and the US.
Corn reached ‘peak’ for 8 years; wheat and soybeans decreased
US corn prices continued to rise to their highest level since March 2013 due to strong demand while limited supply amid fears that dry weather would affect Brazilian maize production.
In addition, traders also focus on monitoring the shrinking global maize stocks as American farmers are focusing on planting corn and soybeans in the autumn harvest and do not pay much attention to selling corn at this time.
The reference maize contract on the Chicago floor last session ended with a rise of 6-1 / 4 US cents to 6.79-1 / 2 USD / bushel, after reaching an 8-year high at a time. 6.98 USD.
Meanwhile, the price of wheat July futures on the Chicago floor fell 16-3 / 4 US cents to 7.18 USD / bushel, soybeans for the same period fell 10-1 / 2 US cent to 15.24 USD / bushel. bushel, while soybean futures for November – representing soybean contracts harvested in the season ending this May – rose 5 US cents to 13.44-3 / 4 USD / bushel.
Reduced sugar
Raw sugar prices on the New York floor last session turned to go down after the recent rally. Accordingly, July futures fell 0.25% US cent, equivalent to 1.5%, to 16.73 cents / lb.
Broker Marex Spectron said the floor price of raw sugar is holding steady at 16 US cents – the price at which Indian exporters are halting exports because there is no profit, while Brazilian sugar exporters are also considering a reduction. the percentage of eyelids used in sugar production. The ceiling price of raw sugar is currently 18 cents.
Decreased coffee
Arabica coffee futures in July decreased by 1.2 US cent, equivalent to 0.8%, down to 1.4025 USD / lb. Last week, this contract reached its highest level since February 2017, at $ 1.4765 / lb.
Some investors are selling to take profits after the recent sharp rise in sugar prices.
Although sugar prices turn down, observers say sugar, heavily supported by winter in Brazil, is coming, and any frost will push up sugar prices due to the country’s supply. This is inherently tight.
Brazilian brokers said the physical sugar market was relatively active after the recent bull run, as the country’s local currency continues to be attractive to both buyers and sellers, pushing physical sugar prices to “highs”. “miracle” is 1,000 real / 60 kg bag.
Palm oil increased the most in 11 months
Palm oil prices have just ended the strongest rally in 11 months thanks to strong exports and a recovery in soybean oil amid fears of a tight global supply of cooking oil.
Palm oil futures in July on Bursa (Malaysia) increased 187 ringgit (4.83%) to 4,055 ringgit (981.22 USD) / ton. During the session, there were times when the price increased by 5.14% – the strongest increase since May 25, 2020
Malaysia’s exports of palm oil products in April increased 13.4% to $ 1,413,094 / ton, compared with the rate of 1,245,567 tons in March.
In the near future, the price of palm oil is likely to be affected by an increase in the number of Covid-19 infections in India and Malaysia.
Prices of some key items morning 4/5
