Oil drops
Oil prices fell nearly 3% due to the new strain of the corona virus that shut down much of the UK and led to tighter restrictions in Europe sparking concerns about a slowdown in fuel demand recovery.
Ending the session on December 21, Brent crude oil fell $ 1.35 or 2.6% to $ 50.91 / barrel, while WTI crude oil in January 2021 fell $ 1.36 or 2.8% to 47. , 74 USD / barrel before expiration. WTI contract for February delivery 2021 fell $ 1.27 or 2.6% to $ 47.97 / barrel. Both oils have lost about $ 3 in early this session.
A stronger dollar also pressures oil markets, making oil more expensive for buyers in other currencies.
Brent oil rose above $ 50 a barrel last week, for the first time since March, because of optimism about the Covid-19 vaccine. But one strain of Covid-19 was 70 percent more transmissible than the original strain, raising fears about the virus. The new strain virus has been detected in countries including Australia, the Netherlands and Italy.
Russian Deputy Prime Minister Alexander Novak said this has had an effect on oil prices, adding that the global oil market recovery is happening slower than initially expected and could be lost. 2 to 3 years.
Negative sentiment overshadowed the rollout of a new vaccine in the US, an agreement between US congressional leaders on a $ 900 billion bailout package and European regulators approving the use of vaccines due to American company Pfizer and German partner BioNTech.
US natural gas increased due to colder weather
The increase in US natural gas due to increased LNG exports and forecast of colder weather in late December overwhelm concerns about the negative impact on gas from the new corona virus.
Natural gas closed up 0.5 US cent or 0.2% to 2,705 USD / mmBtu.
Gold drops
Gold prices fell in the first session of the week due to fears of a new corona virus strain that shook the market and investors chose USD, while the metal received some support from US stimulus package.
Spot gold fell 0.2% to $ 1,877.83 / ounce, having reached its highest level since 9/11 at $ 1,906.46. US gold price in February 2021 closed down 0.3% to 1,882.80 USD / ounce.
Gold soared more than 1% in early trading, supported by reports that US congressional leaders had reached an agreement on a $ 900 billion bailout package. But then the price dropped about 1.3% as the dollar rebounded from a multi-year low to more than a week high on fears of a new highly infectious corona virus that pulled the pound and euro goes down.
Gold as a hedge against inflation has risen about 24% this year amid massive stimulus measures launched globally.
Industrial metals decreased
Prices for copper and other industrial metals fell due to a more infectious coronavirus that threatens to cause more damage to the global economy and investors abandon risky assets.
Copper prices on the London Metal Exchange (LME) fell 1.7% to $ 7,853 / ton.
Copper rose to $ 8,028 a ton last week, the highest since 2013, due to strong Chinese demand, government stimulus and the rollout of the corona virus vaccine that encouraged speculators to flock to. market.
Copper prices could fall if speculators holding their largest net buying positions on LME and Comex since 2017 become less optimistic and cut their positions.
The market for refined copper has a shortage of 155,000 tons in September 2020 after a shortage of 72,000 tons in August 2020, according to the International Copper Research Organization (ICSG).
Global aluminum production increased in November to 5,471 million tons, up 4.1% from the previous year.
LME aluminum fell 1.7% to $ 2,022.5 / ton, zinc down 1.4% to $ 2,833, nickel down 1.2% to $ 17,275.
Iron ore increased by 10%
Dalian iron ore soared almost 10% in the first session of the week on strong demand outlook in 2021 and supply concerns.
Iron ore is the best performing commodity globally this year, up nearly 140%, which some analysts and traders consider to be due to huge speculative bets.
Iron ore prices on the Dalian Commodity Exchange ended the day up 9.7% to 1,144.5 CNY ($ 174.76) / ton, after reaching a high of 1,147 CNY previously.
A landslide at the mine by Vale SA, which killed one person on December 18, raised concerns about operations there.
Iron ore on the Singapore Exchange increased 8.7% to a record 176.2 USD / ton.
China’s top steelmakers are expected to produce more production next year than in 2020.
Spot iron ore soared to 164.5 USD / ton on 18/12, a record high.
Shanghai bar and HR coil increased by 5%. Stainless steel increased by 0.5%.
Japanese rubber highest 2 weeks due to Beijing’s continued support policy
Japanese rubber reached a 2-week high, as Beijing continued its policy of supporting the Covid-19-affected economy, although a tighter Covid-19 blockade in Europe has limited momentum.
Rubber contract delivered in May 2021 on the Osaka trading floor closed up 2 JPY or 0.8% to 248.2 CNY (2.4 USD) / kg. In early session the price reached 251.9 JPY, the highest since December 7.
Rubber contract in Shanghai in May 2021 increased 245 CNY to 14,965 CNY (2,285 USD) / ton.
China will maintain a policy of support to their economic recovery, avoiding a sudden policy change after the meeting of the top leaders ends.
The UK has been shut down from most of Europe, after its closest allies severed shipping ties due to concerns about a new strain of the corona virus, spreading chaos to families and families. companies just days before they come out of the European Union orbit.
Coffee was mixed
Arabica coffee term 3/2021 closed down 0.9 US cent or 0.7% to 1,262 USD / lb.
Arabica coffee closed last week rose 3.6% despite Brazilian output in 2020 adjusted to increase.
The dealer said coffee is difficult to raise prices as Europe is approaching a new blockade.
Rubusta coffee term 3/2021 closed up 3 USD to 1,383 USD / ton.
Sugar increases
Raw sugar delivered in March 2021 closed up 0.09 US cents to 14.53 US cents / lb
Dealers say sugar prices could drop, although a drop below 14 cents would encourage end users to buy.
Egypt intends to import 400,000 to 500,000 tonnes of sugar by 2021, according to an official at the Ministry of Agriculture.
White sugar futures in March 2021 increased 2 USD to 400.3 USD / ton.
Prices of some key items on the morning of December 22
