Oil rises on strong demand
Oil prices rose more than $1 a barrel, continuing their gains from the previous session on optimism about record U.S. crude exports and signs of recession fears easing while concerns about weak demand in the U.S. China has limited the upside.
The data showed record US crude oil exports, a hopeful sign for demand. Speculation that central banks may be nearing the end of the rate hike cycle added support, after the European Central Bank raised rates by 75 basis points. Crude oil prices rose after the US economy rebounded in the third quarter.
Closing the session on October 27, Brent crude oil gained 1.27 USD or 1.3% to 96.96 USD/barrel, WTI oil increased 1.17 USD or 1.3% to 89.08 USD/barrel.
Worries about Chinese demand capped gains. Global investors sold off Chinese assets earlier this week as the world’s largest energy-consuming economy was beset by a zero Covid policy, a real estate crisis and market confidence. is decreasing.
In early trading the USD hit a one-month low, supporting oil prices, although the greenback rose later.
Crude oil prices spiked earlier this year after Russia’s conflict with Ukraine. Brent was near a record high of $147 a barrel in March. Oil prices have fallen recently due to economic worries.
American and Western officials are finalizing a plan to impose a ceiling on Russian oil prices. The World Bank warns that any plan requires the active participation of emerging economies.
Gold price drops
Gold prices fell in a volatile session as a stronger dollar offset support for the metal from expectations the Federal Reserve would slow rate hikes after its meeting next week.
Spot gold fell 0.2 percent to $1,661.25 an ounce, while U.S. gold for December delivery closed down 0.25 percent at $1,665.6 an ounce.
The dollar rose 0.6 percent against its rivals after falling to a more than one-month low in the previous session, making gold less attractive to buyers in other currencies.
Data showed that the US economy recovered more than expected in the third quarter amid a narrowing of the trade deficit, momentum returning to growth after shrinking in the first half of the year. However, consumer spending has been constrained by the Fed’s aggressive rate hikes.
Copper and aluminum fell
Copper and aluminum prices fell, due to more Covid-19 restrictions in China, the world’s top metal consumer, a stronger dollar and growing aluminum stocks.
However, the decline cooled after traders bet on the US Federal Reserve’s interest rate hike was less aggressive.
Three-month copper futures on the London Metal Exchange LME fell 0.8 percent to $7,733 a tonne after falling to $7,663 this session.
Copper prices on the US Comex floor fell 0.8% to $3.52/lb.
LME copper reserves have fallen 68% over the past three weeks. But the LME copper price has dropped 21% year-to-date, as worries about the global crisis and the strict Covid-19 lockdown in China have slowed growth.
A stronger USD index also weighed on the market, making USD-denominated metals more expensive for buyers in other currencies.
LME aluminum fell 2% to $2,288/ton after gaining about 5.4% in the previous session. LME aluminum stocks continued to rise, rising 80% in less than 3 weeks to a 6-month high at 587,100 tonnes.
Iron ore loses support at $90/ton due to weak Chinese demand
Iron ore prices in Dalian and Singapore continued to fall below the key support level of $90/ton, as slumping industry profits and new Covid-19 lockdowns in China put pressure on the heart. physical.
Iron ore for January 2023 on the Dalian Commodity Exchange closed down 4.1% at 643.5 yuan ($89.29) a tonne, after hitting its lowest since July 25 at 642. 5 CNY/ton.
In Singapore, November iron ore term fell to $82.85/ton, down 4.3%.
Profits of Chinese industrial companies fell 2.3% in the first nine months of this year year-on-year, falling at a faster rate due to Covid-19 restrictions and a slump in real estate.
Iron ore prices in Dalian fell about 28% from a peak of 890 yuan in June, while iron ore with 62% Fe content fell to an 11-month low of $92 on October 26, according to company data. consulting firm SteelHome.
Bar steel in Shanghai fell 0.7%, hot rolled coil decreased 0.6%, stainless steel down 0.9%.
Japanese rubber fell
Japanese rubber prices fell, following a downward trend in the Shanghai market, on news of new Covid-19 restrictions and lower-than-expected industrial profit data in China.
Rubber contract for delivery in April 2023 on the Osaka exchange closed down 3.3 JPY or 1.5% at 216.0 JPY ($1.48)/kg.
In Shanghai, the January 2023 rubber contract fell 215 CNY to 12,055 CNY (US$1,671)/ton.
Chinese cities from Wuhan to Xining continue to implement restrictions with Covid-19, house blockades, districts that make millions of people miserable.
Indian rice prices increase
Rice prices from top exporter India rose this week on a rising rupee and supply concerns, while a storm damaged crops in Bangladesh at a time when the country is struggling to tame prices in the near future. water is high.
India’s 5% broken parboiled rice was offered for sale at $375-384/ton, down from $374-382/ton a week ago.
India’s crop size will be lower than previously predicted as showers damage rice crops in northern and northeastern states.
Meanwhile, Bangladesh is grappling with the aftermath of Cyclone Sitrang that occurred on October 24. The storm destroyed 6,000 hectares of rice, according to preliminary estimates from the Agriculture Ministry, dealing a blow to the country trying to bring down domestic prices following flooding earlier this year.
Vietnam’s 5% broken rice price remained unchanged at $425-430/ton FOB.
Farmers are profiting at today’s prices and this will encourage them to invest more in the upcoming winter-spring crop, the biggest of this year.
Vietnam’s rice exports in the first 10 months of this year were estimated at 6.07 million tons, up 17.2% over the previous year. Exports in October are estimated at 700,000 tons.
Thailand’s 5% broken rice price was little changed at $405/ton.
Arabica coffee hits new 14-month low
December Arabica coffee futures closed down 0.9 US cents or 0.5% at $1,7885/lb, having hit a fresh 14-month low at $1,781.
Rabobank said good rainfall in Brazil in recent weeks has bolstered predictions of a good harvest next year. This combined with worries about demand has caused a sell-off since early October. Additionally, they expect ICE reserves, which are currently at a 23-year low, to fall further in the coming weeks.
Robusta coffee for January 2023 increased by 3 USD or 0.2% to 1,878 USD/ton.
Coffee prices in Vietnam fell for a third week in a row on weak global demand, while prices in Indonesia bounced back to a plus level as inventories fell at the end of the harvest.
Farmers in the Central Highlands sold coffee at 40,900 – 43,200 VND ($1.65-1.74)/kg, down from 43,300 – 45,000 VND a week ago.
A trader in Dak Lak said the exchange rate now plays an important role in setting coffee prices.
Another trader said farmers in the Central Highlands have yet to start harvesting coffee due to unfavorable weather conditions.
Vietnamese grade 2 robusta coffee with 5% black and broken beans is offered at a discount of 150-170 USD/ton compared to the March futures contract in London.
In Indonesia, the price of Sumatran Robusta coffee is a plus 10 USD from the 10 USD / ton deduction compared to the contract in London.
Sugar prices fall
Raw sugar for March delivery closed down 0.15 US cents, or 0.8%, at 17.71 US cents/lb, in its lowest session in more than three weeks at 17.69 US cents.
Dealers say funds may have to liquidate more in the coming weeks, but are unlikely to drive the market lower.
According to ABICAB, the production of candy and chocolate in Brazil increased by 11.7% in the first half of 2022.
White sugar for December delivery fell $2.1, or 0.4%, to $517.2 a tonne.
Soybean almost unchanged, corn, wheat down
Soybean prices on the Chicago Mercantile Exchange closed nearly flat after hitting a two-week high on strong demand.
CBOT November soybeans closed up 1/2 US cent to 13.82-1/2 USD/bushel, while January 2023 soybeans also gained 1/2 US cent to 13.93-1 /2 USD.
Wheat closed lower in a volatile session as a stronger dollar made the grain less attractive to importers.
CBOT red soft winter wheat for December futures closed down 2 US cents at 8.38-1/2 USD/bushel.
Corn closed lower after weekly U.S. exports were lower than expected. The December corn contract fell 2-3/4 US cents to 6.82-1/4 USD/bushel.
Prices of some key items in the morning of October 28
