Oil prices continue to cool down
Oil prices closed lower in the last session of the week as members of the International Energy Agency (IEA) agreed to participate in the largest-ever release of US oil reserves.
Both Brent oil and US crude for the whole week fell 13%, the biggest drop in two months after US President Joe Biden announced the release of strategic oil reserves on March 31.
Closing the session of 1/4 Brent crude oil fell 32 US cents or 0.3% to 104.39 USD/barrel. WTI oil fell $1.01, or 1%, to $99.27 a barrel.
The member countries of the International Energy Agency did not agree on the volume or commitment of each at their emergency meeting. Additional details may be known within the next week or so.
U.S. energy companies added oil and natural gas rigs last week for a second straight week, but rig growth remains sluggish as drillers continue to pay shareholders cash for the price of oil. higher increase than increase in output.
In a sign of slumping demand, Shanghai’s commercial hub was shut down on April 1 after the government locked down most of the city’s 26 million residents to prevent the spread of Covid-19.
JPMorgan said it kept its price forecast unchanged at $114 per barrel in the second quarter and $101 per barrel in the second half of the year.
Gold down 1%
Gold prices fell after strong US jobs data boosted the dollar and supported bets the US Federal Reserve would raise interest rates sharply.
Spot gold fell 0.8 percent to $1,921.86 an ounce. US gold for June futures closed down 1.6 percent at $1,923.7 an ounce. For the whole week, gold price decreased by 1.8%.
US jobs data showed the unemployment rate fell to 3.6% to a fresh two-year low and wages rebounded, leaving the Fed likely to raise rates by 50 basis points in May.
The data also boosted 10-year US Treasury yields and a stronger dollar, making gold less attractive to buyers in other currencies.
The price of copper fell
Copper prices retreated on concerns that weakening manufacturing activity and the Covid-19 blockade in China will damage demand.
Three-month copper on the London Metal Exchange (LME) fell 1.1% to $10,264.5 a tonne after two days of gains.
The Shanghai contract for May futures closed down 0.5% at 73,160 yuan ($11,514.55) a tonne after ending March with an eighth straight quarter of gains.
However, LME copper prices moved away from lows and other metals rose on persistent worries about supply effects from the conflict in Ukraine and high energy prices.
LME zinc hit a three-week high, rising 3.9% to $4,334 a tonne after LME inventories fell 10% to 95,125 tonnes, their lowest level since June 2020.
Dalian iron ore nears 8-month high
Iron ore prices in China rose to near an eight-month high as gloomy domestic manufacturing activity data bolstered expectations of further stimulus measures in the country.
Iron ore for September delivery on the Dalian Commodity Exchange closed up 3.5% at 926 yuan ($145.75) a tonne, marking the sixth consecutive week of gains. During the session, the price touched the highest level since August 5, 2021 at 926.5 CNY/ton.
On the Singapore Exchange, the May iron ore contract rose 1.4% to 161.9 USD/ton.
Spot iron ore in China traded at $158.5 a ton, the highest level since March 9, according to SteelHome data.
China’s manufacturing activity fell at its fastest pace in two years in March, as an increase in the number of Covid-19 infections and the conflict in Ukraine caused production and demand to plummet.
To support the economy, Beijing is expected to roll out policies including financial support for infrastructure projects through special local government bonds and the corporate sector through tax breaks and fee. They also said they would cut the policy rate and reserve requirement ratio.
Bar steel in Shanghai increased 2%, hot rolled coil increased 1.6%. Stainless steel fell 0.5%.
Japanese rubber has the 3rd increase week
Japanese rubber prices rose for a third consecutive session and had a third week of gains due to a weak JPY and higher raw material prices, while strong domestic production data also supported sentiment.
The September rubber contract on the Osaka exchange closed up 1.9 yen, or 0.7%, to 261.8 yen ($2.14) per kilogram, after touching its highest level since January 1. 3 at 262.6 JPY in the early part of this session. For the whole week, rubber prices increased by 2.1%.
Raw material supply is tight due to winter in Thailand.
Japan’s manufacturing activity in March increased at a faster rate than the previous month due to increased domestic demand.
The September rubber contract on the Shanghai exchange closed almost flat, down 5 CNY to 13,830 CNY ($2,175.79)/ton.
Sugar prices fall
Raw sugar for May delivery closed down 0.12 US cents or 0.6% at 19.37 US cents/lb.
Dealers say the start of the new sugar season in south-central Brazil will focus on energy prices as mills choose to use the new crop to produce ethanol or sugar biofuels.
Brazil’s local currency rose 1.7% against the USD on April 1 to the highest level since March 2020, which prevented mills from selling sugar to the market.
Brazil exported 1.44 million tons of sugar in March, compared with 1.97 million tons last year.
White sugar for May futures fell $3, or 0.6%, to $538.5 a tonne.
Mixed coffee
Arabica coffee for May delivery closed up 2 US cents, or 0.9%, to $2,284/lb, up for the fourth consecutive session.
Brazil, the world’s top coffee producer, exported 203,112 tonnes of coffee in March compared with 241,605 tonnes a year ago.
The strengthening of Brazil’s local currency also restricts farmers from selling coffee.
Robusta coffee for May delivery fell $26, or 1.2%, to $2,139 a tonne.
Soybean continues to fall, corn closes mixed
U.S. soybeans fell for a second straight session, with the May contract falling below $16 a bushel for the first time in a month, after the USDA forecast record U.S. soybean acreage.
Maize futures closed mixed, May contract fell on technical selling but the following contracts including December contract, representing the 2022 harvest rose to highs mainly due to worries about a decrease in planted acreage in the US. Wheat fell in weak trade at the start of the month, pressured by slow US exports.
CBOT May soybean futures fell 35-1/2 US cents to $15.82-3/4/bushel after hitting 15.80-3/4, the lowest level for this contract since Feb. 25. .
Maize for May futures fell 13-3/4 US cents to $7.35/bushel, but December’s new-crop corn futures closed up 4-1/4 US cents to $6.88/bushel after rising. high at 6.93-3/4 USD/bushel as dealers are worried about supply drop.
Wheat for May futures fell 21-1/2 US cents to 9.84-1/2 USD/bushel.
Prices of some key items on the morning of April 2:
