Oil drops more than 3%
Oil prices fell more than 3% as the number of Covid-19 cases in China increased and US interest rates could rise higher than currently expected, weighing on demand.
Closing the session on November 17, Brent crude oil fell by $3.08 or 3.3% to $89.78 per barrel. US WTI oil fell $3.95, or 4.6%, to $81.64 a barrel.
James Bullard Chairman of the Federal Reserve in St. Louis said a basic monetary policy rule would require interest rates to rise to at least around 5%, while tighter assumptions would recommend rates above 7%.
The dollar also rose, a strong dollar making oil more expensive for holders of other currencies.
China reports a rising daily number of Covid-19 infections and Chinese refiners have ordered a reduction in crude volumes from Saudi Arabia for December, while crude purchases from Russia are also slowing. .
Poland and NATO said the missile downed in Poland, a NATO member state, could have been misdirected by Ukraine’s air defenses and not by a Russian attack, alleviating fears of an escalation of the conflict between Russia. and Ukraine.
Oil got some support from official data showing US crude inventories fell by more than 5 million barrels last week.
Supply also tightened in November as OPEC and its allies implemented the latest production control measures to support the market.
Gold down nearly 1%
Gold prices retreated nearly 1% as the dollar recovered, while recent comments from Fed officials signal continued tightening of monetary policy to curb inflation.
Spot gold fell 0.8 percent to $1,760.43 an ounce after falling to $1,753.6 an ounce. US gold for December delivery closed down 0.7% at $1,763 an ounce.
The dollar index rose 0.3 percent, making gold more expensive for buyers in other currencies and 10-year bond yields also rose.
Copper retracement
Copper prices continued to fall on a stronger dollar and demand concerns after the number of Covid-19 infections increased in China.
Three-month copper on the London Metal Exchange fell 2% to $8,125 a tonne after falling 1% in the previous session.
The US Comex fell 2.3% to 3.69 USD/lb.
The soaring number of Covid-19 infections stoked new concerns about the blockade in China causing stocks to fall.
Copper touched a nearly five-month high on November 14 on news that China eased some Covid-19 restrictions and took steps to support the country’s struggling real estate sector.
Also weighing on markets was the dollar index, which rose after strong US retail sales raised doubts that the Fed could halt its aggressive rate hikes.
The difference between spot copper and 3-month futures contract continued to increase to minus 35 USD/ton, the highest in 8 months.
Iron ore rose
Dalian iron ore prices closed higher in a volatile session, with investors betting that China would roll out more measures to support its struggling economy.
China will step up the implementation of prudent monetary policy, stabilize employment and prices in an effort to strengthen and improve the upward momentum of the economy.
Iron ore for January delivery on China’s Dalian Commodity Exchange closed up 1.7 percent at 740 yuan ($103.85) a tonne after rising and falling volatility throughout the session.
In Singapore, December iron ore futures rose 0.2 percent to $97.2 a tonne.
Iron ore has enjoyed a strong recovery following the October sell-off, fueled by optimism that recent policy actions in China will boost demand for its steel and raw materials.
China has eased some Covid-19 restrictions and announced measures to support the ailing real estate sector.
Moody’s maintains a negative outlook for China’s real estate sector as it anticipates continued weak property sales.
Japanese rubber increased
Japanese rubber prices edged higher in Shanghai, after China’s central bank reaffirmed stronger policy support to boost economic growth, although weaker domestic stocks capped increase momentum.
Rubber contract for April 2023 on the Osaka exchange closed up 1 JPY or 0.5% to 217.9 JPY ($1.56)/kg.
In Shanghai, the price of rubber for delivery in January 2023 increased by 180 CNY to 12,810 CNY (US$1,797)/ton.
The past months have seen growing concerns about slowing rubber demand in China as the country grapples with a property crisis, heatwaves disrupting production and prolonged lockdowns. industrial activity and consumption.
Indian rice prices rise on strong demand
Rice export prices from India increased this week due to increased overseas demand and as the government actively bought rice to encourage increased production at home.
The price of Indian 5% broken parboiled rice increased to $373-378/ton from $370-$375/ton in the context of increased export demand.
India raised the price of new-crop rice from farmers by 5.2 percent, the biggest increase in five years, as New Delhi encouraged farmers to increase planting area and output.
Meanwhile, output from Bangladesh’s second-biggest rice crop could reach 17 million tons, surpassing the target of 16 million tons, as farmers increase planting area as prices soar. Bangladesh is struggling to bolster its reserves after widespread flooding.
In Thailand, the price of 5% broken rice is at its highest level since early October at $410-425/ton. Traders attribute this increase to the strengthening baht, which reduces exporters’ profits from overseas sales.
The price of Vietnam’s 5% broken rice remained unchanged at 435 – 430 USD/ton FOB.
A trader in Ho Chi Minh City said Vietnam’s rice demand is higher than previously forecast and this year’s exports will exceed the official target of 6.3-6.5 million tonnes.
Raw sugar drops from 7-month high
Raw sugar for March 2023 closed down 0.54 US cents, or 2.7%, at 19.73 US cents/lb after rising to a seven-month high of 20.44 US cents in the previous session.
Dealers say the market is technically overbought after the recent surge, so the drop was not unexpected.
Weak oil prices and stronger USD added pressure to sugar.
White sugar futures in March 2023 fell 11.2 USD or 2.1% to 533.4 USD/ton.
India’s sugar mills produced 2 million tonnes of sugar in the crop year starting October 1, unchanged from a year ago, according to the Sugar Mills Association of India.
Lowest arabica coffee 16 months
Arabica coffee for March 2023 closed down 2.05 US cents or 1.3% at $1.5635/lb, having previously touched a 16-month low at $1.5405.
Fitch Solutions said the market could fall further in the short term due to weak global demand and improved supply in top producer Brazil.
The current weak Brazilian real and Colombian peso also continue to encourage export sales.
Robusta coffee term January 2023 increased $ 26 or 1.5% to $ 1,818 / ton.
Coffee prices in Vietnam fell on global clues and new harvest supplies, while premiums in Indonesia continued to rise due to tight supply.
Farmers in the Central Highlands sold coffee at VND38,900-40,100 ($1.57-$1.62)/kg, down from VND39,700-41,300 a week ago.
Traders offered grade 2 robusta with 5% black and broken beans at a discount of $60-$70/ton from the March 2023 contract on ICE London, unchanged from a week ago. .
New crop coffees have started to hit the market but not much as they are going through the drying process.
In Indonesia, Sumatran robusta coffee was offered at a premium of $50/ton compared with the January 2023 contract, up from a premium of $40 last week, due to weak coffee supplies.
Prices of some key items in the morning of 11/18
