Oil down nearly 1%
Oil prices fell nearly 1%, reversing earlier gains as the US consumer price index unexpectedly rose in August, creating conditions for the US Federal Reserve to sharply raise interest rates next week.
Closing session on September 13, Brent crude for November delivery fell 83 US cents or 0.9% to $93.17 per barrel, in the session from $91.05 to $95.53 per barrel. WTI oil for October delivery fell 47 US cents or 0.5% to 87.31 USD/barrel.
Oil is generally priced in USD, so a stronger greenback makes it more expensive for buyers in other currencies.
New restrictions related to Covid-19 in China, the world’s second largest oil consumer, also put pressure on oil prices.
At the beginning of the session, both oils gained more than 1.5 USD/barrel because of concerns about less inventories.
A Bloomberg reporter said the US could start refilling the Strategic Petroleum Reserve when crude oil prices fall below $80 per barrel. U.S. commercial stockpiles were forecast to increase by 800,000 barrels last week, according to a Reuters poll.
The prospect of restoring the West’s nuclear deal with Iran remains dim. On September 12, Germany expressed regret that Tehran had not responded positively to European proposals to restore the 2015 agreement. US Secretary of State Antony Blinken said an agreement would be unlikely. be in the near future.
The Organization of the Petroleum Exporting Countries left its forecast for strong global oil demand growth unchanged in 2022 and 2023, as major economies are performing better than expected despite difficulties such as rising inflation. leap.
Gold fell
Gold prices fell more than 1% as the dollar rose after a surprise increase in the US consumer price index in August reinforced bets on a positive interest rate hike by the US Federal Reserve.
Spot gold fell 1.2% to $1,703.8 an ounce. US gold for December delivery closed down 1.3% at $1,717.4 an ounce.
Gold can hold in the range of $1,690 to $1,700 an ounce in the short term and the dollar is unlikely to reach new highs unless the Fed is very aggressive next week. Markets now see an 81% chance the Fed will raise rates by 75 basis points at its September 20-21 meeting.
Although gold is seen as a hedge against inflation, rising US interest rates increase the cost of holding gold.
The dong fell
Copper prices fell back after U.S. inflation unexpectedly picked up in August and pushed the dollar up as investors feared a further sharp rise in interest rates could limit economic growth and dampen demand for the metal. .
Three-month copper on the London Metal Exchange (LME) fell 1.2 percent to $7,861 a tonne after hitting its highest price since August 26 at $8,153 a tonne.
The US Comex fell 1.5% to $3.56/lb.
Copper prices reversed course after data showed the US consumer price index rose 0.1% last month, while economists polled by Reuters had forecast a 0.1% drop.
On September 13, spot copper prices were higher than 3-month futures contracts on LME by up to 150 USD/ton, the highest since November 2021, showing the current shortage of copper in the warehouse of the exchange. Translate.
The USD index rose 1.3% after the US data. A stronger dollar makes goods denominated in this currency more expensive for buyers in other currencies.
Iron ore continues to rise due to supply concerns
Dalian iron ore prices hit a two-week high as trading resumed in China after a three-day holiday weekend, with supply concerns and signs of stronger demand supporting prices.
The January 2023 iron ore contract on China’s Dalian Commodity Exchange closed up 2% to 728.5 yuan ($105.23) a tonne, after touching its highest level since the 29th. /8 at 732 CNY in the early part of this session.
On the Singapore Exchange, the October iron ore contract rose 1.9% to $104.05 a tonne, near a two-week high of $104.55 a tonne on September 12.
Iron ore arrivals at China’s ports fell by 2.32 million tonnes last week, and combined with continued strong port daily consumption leads to a reduction in material inventories at ports. Iron ore exports from Australia and Brazil fell by 1.52 million tons during the same period, tightening the supply-demand balance in the short term.
Iron ore inventories at China’s ports fell for the first time in 11 weeks to 142.1 million tonnes as of September 9, according to data consulting firm SteelHome.
Blast furnace utilization among China’s 247 steel mills increased to 87.56% between September 2 and 8, increasing for the sixth consecutive week, according to a survey by Mysteel company.
On the Shanghai futures exchange, hot rolled rod and coil rose 1% and 1.2%, respectively. Stainless steel rose 3.9%.
Japanese rubber increased
Japanese rubber prices rose for a fourth straight session, supported by the Shanghai market after the Chinese government reaffirmed its commitment to stabilizing the economy through phased policy support.
Rubber contract for February 2023 on the Osaka exchange closed up 1.7 JPY or 0.8% to 222.9 JPY ($1.57)/kg.
In Shanghai, rubber delivered in January 2023 increased by 385 CNY to 12,700 CNY (US$1,834)/ton.
China continues to roll out policies in phases to stabilize the economy, focus on the recovery of consumption and boost investment, and implement these policies as soon as possible, according to state media. The country quoted Prime Minister Li Keqiang.
Japan’s wholesale prices rose 9% year-on-year in August, in line with the growth rate in July, signaling that raw material costs remained high, dampening corporate profits.
White sugar falls after reaching 10-year high
October white sugar, due on September 15, fell $6.7, or 1.1%, to $606.3 a tonne after hitting a 10-year high at $620.3 a tonne.
Dealers said supplies of white sugar are tight at the moment with stocks dwindling in some of the main importing countries, exports from India remain low while refining costs have also increased in recent months.
Raw sugar for October delivery closed up 0.03 US cents or 0.2% at 18.38 US cents/lb.
The dealer noted sugar production in Brazil’s South-Central region was slightly higher than expected in the second half of August, at 3.13 million tonnes, up 5.77% from a year ago.
Reduced coffee
December Arabica coffee futures closed down 4.05 US cents, or 1.8%, at $2,207/lb, continuing to fall from a six-month high of $2.4295 set on Aug. 25.
Dealers say the improved outlook for crops in Brazil has put the market on the defensive, with forecasts of rain returning in late September prompting a key flowering period.
Branded coffee shop sales in the US grew 10% in the 12 months to June 2022 to $45.8 billion, or 96% of pre-pandemic sales.
Robusta coffee for November delivery fell $24, or 1.1%, to $2,239 a tonne.
Soybean, corn fell due to profit taking, wheat increased
Corn and soybeans on the Chicago Mercantile Exchange fell but remained near three-month highs. Wheat rose on supply uncertainty in the Black Sea following Russia’s criticism of a diplomatic agreement allowing seaborne grain exports from Ukraine.
CBOT November soybeans closed down 9-1/2 US cents to 14.78-3/4 USD/bushel. The soybean contract peaked at $15.08-3/4, the highest level for the contract since June 23, in the previous night’s session.
Corn for December delivery fell 3-1/4 US cent to 6.92-3/4 USD/bushel after hitting the highest level since June 27 in the previous session.
Winter soft red wheat for December delivery rose 1-3/4 US cents to 8.6-1/2 USD/bushel.
Prices of some key items on the morning of September 14:
