Oil rises on strong demand
Oil prices continued to rise in the past session as demand increased as it was the driving season in the Northern Hemisphere as countries gradually lifted anti-Covid-19 restrictions, although concerns remained about the possibility of Iran returning to the country. return to the export market will cause oversupply.
Brent oil futures reference price continued to increase 19 cents (0.3%) to 68.65 USD/barrel, while US West Texas Intermediate (WTI) oil increased 2 US cents to 66.07 USD/barrel. This is the highest closing price within a week for both oils.
Two market sources cited data from the American Petroleum Institute (AIP) released on May 25, showing that US crude oil and fuel inventories fell last week, of which crude inventories fell by 439,000 barrels in the past week. week ends 5/21.
Oil prices were also supported by the dollar’s decline to a 19-week low against a basket of major currencies as currency investors eased their concerns about inflation. A weaker dollar makes dollar-denominated commodities like oil more attractive to holders of other currencies.
However, the rise in oil prices was limited by concerns about increased supply from Iran. Analysts say Iran could supply about 1 million to 2 million barrels of oil a day more if an agreement between Iran and the West is signed and sanctions are lifted.
Gold hits 4.5-month high
Gold prices rose to the highest level in more than four months in the past session as the dollar and US Treasury yields fell, amid expectations that the US Federal Reserve (Fed) would keep monetary policy unchanged. his bad.
Spot gold ended the session up 0.8 percent to $1,896.74 an ounce, before hitting its highest level since January 8 at $189.4; June gold futures also rose 0.7 percent to $1,898 an ounce.
Data showed that the US consumer confidence index in May fell to 117.2.
Phillip Streible, chief market strategist at Blue Line, said: “With consumer confidence falling like that, we’re getting a strong response. Some might think the Fed will move on. keep monetary policy dovish for a long time”, so the USD remains weak and gold will have a chance to rise further.
Iron and steel decrease
Iron and steel prices continued to decline in the past session after the Chinese Government announced that it would strictly handle cases of speculation and hoarding causing market turmoil.
At the end of the session, September iron ore futures on the Dalian bourse fell 0.1% to 1,058 CNY ($165.18) per ton, the fifth consecutive drop. Steel prices on the Singapore floor increased slightly by 1% to 184.35 USD/ton. Rebar prices on the Shanghai Stock Exchange fell 0.7%, while hot rolled coil fell 0.6% and stainless steel fell 0.6%.
China’s National Development and Reform Commission (NDRC) on May 25 announced that in its 14th five-year plan, for the period 2021-2025, the country will strengthen price controls on some commodities. , including iron ore, to deal with price fluctuations.
Atilla Widnell, managing director of Navigate Commodities in Singapore, said: “China is increasingly tightening its supervision of the futures market as government agencies need to control speculation – already there. pushing prices to recent record highs.”
Copper falls on concerns about China’s price control policy
Copper prices fell in the past session as the market worried about China’s control over the price of industrial raw materials. However, a weak USD and tight copper supply prevented the price from falling sharply.
At the end of the session, 3-month copper futures on the London Stock Exchange (LME) fell 0.3% to $9,919/ton.
Copper is a metal widely used in the electrical and construction industries. The price of the metal is down 7% from a record high of $10,747.50 a tonne hit this month. Prices began to fall after China increased its margin on futures and trading fees, and introduced penalties for futures violations, ranging from excessive speculation to spreading money. spread fake news.
China’s National Development and Reform Commission (NDRC) on May 25 announced it would strengthen price controls on some commodities, including copper, in its 14th five-year plan, period 2021. – 2025 to address unusual price fluctuations.
Lowest corn in 1 month, wheat and soybean also decreased
US corn prices last session fell to the lowest level in a month due to timely spring planting and rain in the main growing areas of the US (the Midwest region), favorable for the development of the US corn market. development of plants.
July corn futures on the Chicago Mercantile Exchange fell 38-1/4 cents to 6.18-3/4 USD/bushel, the lowest since April 22; New-crop corn for December delivery also fell 24-1/4 cents to $5.16/bushel, having broken through support in the recent 50-day average chart.
Soybean and wheat prices also fell at the same time due to the prospect of high output, and also due to the negative impact of lower corn prices.
Accordingly, July soybean futures fell 18 US cents to 15.04-3/4 USD/bushel, while wheat for the same term fell 8 US cents to 6.54-1/4 USD/bushel.
Rising sugar
Raw sugar prices last session increased as the weather in Brazil remained dry, although rain is forecast in the next few days. However, the uptrend was limited by the forecast that India’s blockade against Covid-19 could slow down sugar demand in the world’s largest sugar consumer.
Accordingly, raw sugar for July delivery rose 0.21 cents, or 1.2%, to 17.04 cents/lb, recovering somewhat from a 1-month low in the previous session (16.54 cents).
The price of white sugar delivered in August this session also increased by 6.50 USD, or 1.4%, to 455.90 USD/ton.
Coffee rose
Dry weather in Brazil that could limit exports from the world’s top arabica producer also supported a rise in arabica prices, with July futures up 1.5%, or 1.0 %, to 1,505 USD/lb.
Brazilian coffee growers are expected to produce 48.8 million bags of coffee (60 kg/bag) this year, 22% lower than in 2020 and the lowest output since 2017, the agency said. Brazil’s government agricultural statistics – Conab – recently reported.
Coffee growers in Brazil are trying to renegotiate their purchase contracts with exporters and traders to push prices up, raising fears that some defaults could be reached. .
Robusta price for July term this session also increased by 10 USD, or 0.7%, to 1,488 USD/ton.
Reduced rubber
Japanese rubber futures fell in the last session as some economists predicted that the Olympic Games – which will start in less than two months – could turn into a Covid-19 super-spreader event. , thereby having a strong impact on the country’s economy.
Ending the session, rubber for October term on the Osaka floor fell 0.9 JPY, or 0.4%, to 251.3 JPY/kg.
Japan could lose $17 billion if the Olympics are canceled, but that will pale in comparison to the effects of the Summer Olympics becoming a Covid-19 super-spreader, Takahide Kiuchi, executive economist at Nomura Research Institute said.
Rubber prices on the Shanghai floor last session increased by 03% to 13,735 CNY/ton.
Prices of some key items in the morning of May 26
