Oil up 1%
Oil prices rose 1% in the past session after the US released strong economic data, outweighing the negative impact of investors’ concerns about the possibility that Iran will increase oil supply. on the export market.
Ending this session, Brent oil rose 59 US cents (0.9%) to 69.46 USD/barrel, West Texas oil (USA) increased 64 US cents (1%) to 66.85 USD/barrel.
Statistics from the US Department of Labor show that the number of Americans filing new applications for unemployment benefits in the country last week fell more than expected.
The US economy in the first quarter of this year grew at the second fastest pace since the third quarter of 2003 thanks to many impetus, with another data yesterday showing that business spending on the device segment has decreased. strong increase in April – shows that investors are investing heavily to increase production to meet consumer demand.
Solid gold
Gold prices remained close to the key threshold of $1,900/ounce at the close amid low US Treasury yields (a positive factor for gold prices) but positive US economic data. shows that the world’s largest economy continues to recover strongly (the factor that negatively affects gold).
At the end of this session, spot gold price was stable at 1,896.76 USD/ounce; Gold futures for June 2021 fell 0.3 percent to $1,898.5 an ounce.
“The U.S. economy is on a solid footing and investors have been less concerned about inflation as the Federal Reserve has reached a plateau,” said Kitco Metals senior analyst Jim Wyckoff. Some have succeeded in convincing the market that inflation is indeed temporary.
Therefore, according to this expert, “it’s just that the recent uptrend in gold prices is taking a pause. But we shouldn’t be surprised to see some investors taking advantage of buying to hunt for bargains when gold prices fall. at the end of the session”.
Copper rose
Copper and other industrial metals both rallied strongly in the past session on strong US economic data and concerns that strikes at copper mines in Chile – the world’s top copper producer – will affect supply. These two factors have made investors temporarily forget about worries that China – the world’s largest copper consumer – will tighten monetary policy.
Copper futures for three-month delivery on the London Stock Exchange – the reference for the global copper market – ended May 27, up 2.7% to $10,244 per tonne.
This May has seen copper prices rise to a record high of $10,747.5 per tonne, but fell to $9,795 per tonne on May 24, and prices are now significantly higher than that low. .
Steel and iron ore rise
Iron and steel prices simultaneously increased in the past session as investors eased concerns about the Chinese Government’s tightening control on speculative activities.
Specifically, the price of iron ore on the Dalian Exchange (China) ended the session on May 27, up 1.1% to 1,046.5 CNY (164.1 USD)/ton, although during the session it dropped to 984. CNY, lowest since April 12.
On the Singapore floor, iron ore prices increased sharply by 5.6% to 112.1 USD/ton, although there was a time when it fell to a low of more than 5 weeks, at 170.5 USD/ton.
Sharing the same trend, the price of rebar on the Shanghai trading floor this session increased by 0.2% compared to the end of the previous session, hot rolled coil increased by 0.5% and stainless steel increased by 1.3%.
Adam Hoyes, chief economist at Capital Economics, said: “While the government’s actions appear to have dampened some speculative activity, which in turn has a short-term impact on the market, history has shown that I don’t think those moves will have much of an impact in the long run.”
He cited measures China has used in the past, which are stricter regulations to deal with soaring commodity prices, for example in December, when it imposed trading restrictions on goods. With iron ore futures, it will only bring prices down for a few weeks.
Corn up 6% on strong demand from importers, soybeans and wheat also up
U.S. corn prices rose more than 6% in the past session, away from a 1-month low, amid more technical buying and strong demand for the feed grain.
Soybean prices also bucked the corn trend and rose for the first time in eight sessions, after hitting a one-month low in the previous session.
Wheat also rose for the first time in nine sessions on strong technical buying in near-terms and concerns about the recent spring wheat crop in the northern US delta. is suffering from severe drought.
At the end of the session, on the Chiacago exchange, the price of corn for July futures increased by 40 US cents to 6.64-1/2 USD/bushel. The 6.4% gain was the biggest gain for the most-traded corn contract since June 2015. Soybean for July delivery also rose 33-1/2 cents to $15.37/bushel, while wheat for the same term rose 27-3/4 cents to 6.76-1/4 USD/bushel. .
The highest coffee in 4.5 years
Arabica coffee futures prices rose to a four-and-a-half year high on concerns about tight supplies as Brazilian coffee growers defaulted on not being able to pay for sold contracts and as exports in Colombia fell. delay.
In the session of May 27, the price of arabica coffee for July term at one point reached $1,572/lb, the highest since the end of 2016, ending the session down slightly by 0.2% compared to the previous session’s closing, to 1. 5535 USD/lb.
Amid a slump in supply, Brazilian coffee growers are trying to renegotiate pre-agreed sales contracts with exporters and traders at higher prices, sparking concerned about the risk of this industry falling into default.
Meanwhile, the coffee business in Colombia is still struggling due to anti-government protests affecting the flow of goods.
Robusta price last session also increased by 14 USD, or 0.9%, to 1,517 USD/ton.
In Asia, coffee trading activity in Indonesia is sparse after the holiday, while the weather in Vietnam is favorable for the coffee industry, trading activity is also slow due to tight supply.
Local traders said that Indonesia’s Sumtran robusta coffee price was unchanged due to reduced demand. The plus price of Indonesian coffee for delivery in July and August is currently around 110-120 USD/ton.
Meanwhile, traders in Vietnam are offering a monthly premium for grade 2 (5% black and broken) robusta coffee plus 20 USD compared to the reference contract in London (a week ago, the plus of the futures contract). July term is also 20 USD/ton).
Sugar up 2%
The price of raw sugar for July futures ended the session up 0.34 US cents (2%) to 17.12 US cents/lb, away from the 1-month low of the 24/5 session. is 16.54 US cents.
Sugar prices are quite precarious when it is not ruled out that the price will drop to 16.5 US cents, and there is little reason for the price to rise further from current levels.
Brokerage StoneX says the world sugar market is moving from a deficit in 2020/21 to a slight surplus in 2021/22 due to increased production in Asia.
The price of white sugar for August term ended last session also increased by 7.50 USD, or 1.7%, to 457.50 USD/ton.
Rubber rose
Rubber prices on the Japanese market increased in the past session after the leader of the country’s ruling party spoke in favor of stronger public spending to help the economy recover amid the pandemic’s impact. seriously affect the economy of this country.
Ending the session, rubber for October term on the Osaka floor increased by 0.2 JPY (0.1%) to 255.4 JPY/kg. However, the price of rubber for September term on the Shanghai bourse fell 0.7% to 13,665 CNY/ton.
Prices of some key items in the morning of May 28
