Brent oil prices hit 2-year high on strong demand outlook
Oil prices surged more than 5% in the last session of the week, in which Brent oil – the reference for the global market reached a record high not seen in the past two years, due to strong economic data from the US. expected global demand to recover.
Ending this session, the price of Brent oil rose 17 US cents, or 0.2%, to 69.63 USD/barrel, the highest closing level since May 2019.
However, the price of US West Texas Intermediate (WTI) oil fell 53 US cents, or 0.79%, to $66.32 per barrel.
Analysts expect global oil demand to recover to nearly 100 million bpd in the third quarter, the summer tourist season in Europe and the US, following widespread COVID-19 vaccination programs. .
However, the prospect that Iran would increase its oil exports limited the rise in oil prices.
Gold surpasses $1,900 as US inflation rises
Gold prices reversed gains in the past session, surpassing $ 1,900 an ounce after data from the US showed consumer prices increased in April, making gold attractive again as an inflation hedge.
Accordingly, spot gold price this session increased 0.3% to 1,902.27 USD/ounce, although in the session it fell 0.8%. For the whole week, the price has increased for the 4th week in a row with an increase of 1.1%.
US gold futures for June 2021 rose 0.4 percent in the same session, to $1,905.3 per ounce.
US consumer prices rose sharply in April compared to the same period last year, exceeding the 2% target of the US Federal Reserve (Fed). This is a measure of US inflation and has a great influence on the world.
Dong rises due to high US inflation
Copper prices rallied at the end of the week as investors bet that US infrastructure spending plans would cause raw material shortages. This hope outweighs worries about weakening Chinese demand.
At the end of this session, 3-month copper futures on the London floor rose 0.6% to 10,283.50 USD/ton, erasing all losses at the beginning of the session.
Since the beginning of the year, the price of copper has increased by 31%, on May 10, it reached a record high of 10,747.50 USD/ton.
Iron ore, steel increase
Iron ore prices continued to increase in the last session of the week. Accordingly, iron ore for September term on Dalian ended the session at 1,063 CNY ($166.79)/ton, up 4.1% compared to the previous session’s close, at one point reaching 1,074.5 CNY ($168.51)/ton; Iron ore for June futures on the Singapore Exchange also ended up increasing 1.1% to $185/ton, after reaching $186/ton at one point.
However, for the whole week, iron ore prices still fell more than 5% due to huge losses at the beginning of the week. This is the 3rd week in a row that the price of this steel material has dropped due to concerns about China controlling commodity prices.
Steel price also increased in the last session of the week, according to which rebar for October delivery on Shanghai floor increased by 4.1%, hot rolled coil increased by 4.9%.
Rubber drops from 3-week high
The price of natural rubber decreased in the last session of the week, but in general, the whole week still increased.
Specifically, on the Osaka floor, rubber for November term fell 1.1 JPY (0.4%) compared to the previous session, to 254.3 JPY (2.3 USD)/kg at the close of trading session. . During the session, there was a time when the price reached a 3-week record high of 261 JPY/kg. However, for the whole week, the price still increased by 1.2%. The price of rubber for September delivery on Shanghai trading floor last session ended at 13,660 CNY (US$2,143)/ton, earlier in the same session the price reached 13,975 CNY/ton.
The rubber market was stimulated by strong economic data coming from the US and information that the Bank of Japan will maintain strong economic stimulus measures to revive the struggling economy. difficulties due to the re-emergence of the Covid-19 epidemic.
Corn, wheat and soybeans fell
Corn prices fell in the last session of the week after recovering strongly in the previous session – due to strong demand from China. Market participants adjusted their positions in contracts ahead of a longer-than-usual weekend (the US market will close for trading next Monday).
Wheat and soybean prices also fell this session, especially spring wheat on the Minneapolis floor increased because most of the US Midwest region suffered from a cold wave.
Ending the trading session on the Chicago floor, the price of US corn fell 7-3/4 US cents to 6.56-3/4 USD/bushel, for the whole week down 2-3/4 cents.
Wheat prices this session also fell 12-3/4 cents to 6.63-1/2 USD/bushel, for the whole week fell 10-3/4 cents and was the third consecutive week of decline.
Soybean prices fell 6-1/2 cents to 15.30-1/2 USD/bushel, but for the whole week increased 4-1/4 US cents.
Coffee up 4.5%
Arabica coffee prices continue to increase due to dry weather in Brazil.
Accordingly, Arabica for July futures increased by 7 US cents, or 4.5%, to 1.6235 USD/lb at the end of the session, after a time reaching 1.6315 USD, the highest within 4.5 year, due to the prospect of Brazil’s coffee production this year will be significantly reduced by dry weather, right in the coffee crop cycle for low production. Even a drought now can reduce yields for the whole next crop.
Robusta coffee for the term of July this session also increased by 66 USD, or 4.4%, to 1,583 USD/ton.
Rising sugar
July raw sugar futures rose 0.24 US cents (1.4%) to 17.36 US cents/lb at the close, after rallying to a two-week high of 17 .69 US cents.
However, the prospect of a global sugar glut in the 2021/22 season hampers the upside.
The price of white sugar for August delivery in this session also increased by 2.10 USD, or 0.5%, to 459.60 USD/ton.
Palm oil and soybean oil increase
The reference price of Malaysian palm oil futures increased by 2.53% in the last session of the week, recovering strongly from the previous drop, due to the positive influence of the increase in soybean prices on the Chicago Stock Exchange in the previous session.
Palm oil for August delivery on the Bursa (Malaysia) exchange rose 4,015 ringgit ($971.68) per tonne at the close. For the week as a whole, prices rose 0.6%, after falling 11.43% in the previous week – the biggest drop in a year.
Prices of some key items in the morning of May 29
