Oil rises on supply concerns
Oil prices rose slightly in a volatile Monday session (September 19) as worries about tight supply outweighed worries that global demand could slow due to a strong dollar and rising interest rates. .
Nov , equivalent to an increase of 0.7%.
An internal document shows that the Organization of the Petroleum Exporting Countries and its allies led by Russia, known as OPEC+, fell short of its oil production target of 3.583 million barrels per day (bpd) in August. In July, OPEC+ also missed its target of 2.892 million bpd.
However, many traders this week only trade in moderation to wait for the outcome of the Fed meeting.
The trading volume on September 19 was also not much because the UK held a national mourning for Queen Elizabeth.
Gold nears 29-month low
Gold prices fell in the last session, returning to a 29-month low hit on Friday (September 16) as the dollar and US Treasury yields stayed strong on expectations the Federal Reserve Fed) will sharply increase interest rates at this week’s meeting.
At the end of the session, spot gold price fell 0.3% to USD 1,670.72/ounce; slightly above its lowest level since April 2020, hit on Friday.
Gold for December futures fell 0.3 percent to $1,678.20.
The Fed, which will wrap up its September policy meeting on Wednesday (September 21) is expected to raise interest rates by 75 basis points to combat high inflation, with even market traders seeing 20 % chance that interest rates will increase by 100 basis points.
Copper falls on gloomy demand outlook
Copper prices fell on Monday as the market grew worried about global copper demand on expectations that the Fed will decide to raise interest rates strongly again later this week.
Spot gold on the London Metal Exchange ended the session down 0.1% at $7,755 a tonne.
Rising US interest rates mean a stronger dollar, making USD-denominated metals more expensive for holders of other currencies, which will continue to weigh on demand. .
The prospect of a potential recession in Europe combined with the recent weakness in China has led to a decline in speculative positions, sending copper prices lower.
The price of copper, used in the electricity and construction industries, has fallen nearly 30 percent since hitting a record high of $10,845 a tonne in early March.
Coffee down nearly 3%
U.S. ICE futures arabica coffee futures rose nearly 3% on reduced supply and a lower-than-expected crop outlook in Brazil.
Arabica coffee for December delivery rose 6 cents, or 2.8%, to $2,211/lb, in a volatile session. The contract has rebounded after hitting a low of nearly a month earlier, at $2.1085/lb.
The amount of coffee stored at ICE warehouses on September 16 fell to the lowest level since June 1999, at 532,448 bags, with just over 3,000 bags awaiting sorting.
There are no prices for robusta coffee as the London coffee exchange is closed for the day of the Queen’s funeral.
Falling line
Crude sugar for October delivery fell 0.19%, or 1.1%, to 17.69 cents/lb.
Dealers said the market looks “weakened” as production is expected to increase in Asia and Brazil, supported by current low prices that will not attract India’s sugar exports.
There are no prices for white sugar as the London sugar exchange is closed for the day of the Queen’s funeral.
Palm oil fell
Palm oil prices rose at the start of the session on Monday (September 19), but turned lower towards the end of the session, ending the third consecutive session of decline as estimates of September palm oil production outstripped demand.
The December palm oil contract on the Bursa Derivatives Exchange (Malaysia) fell 82 ringgit, or 2.17%, to 3,701 ringgit ($813.76) a tonne, after rising more than 2% at the start of the session. .
Traders citing data from the Southern Peninsular Palm Oil Crushers Association (SPPOMA) said output at the world’s second-largest producer – Malaysia – during September 1-15 increased by 7. ,5%. Meanwhile, Malaysia’s exports of palm oil products from September 1-15 increased from 19% to 25% year-on-year in August, commodity surveyors said last week.
Wheat down, corn and soybeans up
Wheat prices fell as Russia’s output is expected to increase, thereby competing with US wheat exports, which have been troubled by a stronger dollar.
Soybean prices rose on the back of strong Chinese demand, while corn prices also increased slightly.
US wheat prices on the Chicago Mercantile Exchange fell 29-1/4 cents to 8.30-1/2 USD/bushel. Soybeans rose 12-3/4 cents to end the session at $14.61-1/4 per bushel, while corn rose 1 cent to 6.78-1/4 dollars per bushel.
Russian consulting firm IKAR has raised its forecast for Russia’s 2022 wheat production by 2 million tons, noting that the world’s largest wheat exporter will have 47.5 million tons available for delivery in 2022. 2023.
Iron ore decrease
Iron ore prices on both Dalian (China) and Singapore exchanges fell due to China’s Zero Covid policy and the country’s real estate sector continued to stagnate.
Iron ore for January 2023 on China’s Dalian Commodity Exchange ended day trading down 1.4% at 705.50 yuan ($100.61) a tonne.
On the Singapore Exchange, October iron ore futures fell 1.2% to $96.80 a tonne.
Traders are wary of the possibility that anti-Covid measures as the Zero Covid target may extend to the Chinese Party Congress next month.
Prices of some key items in the morning of September 20:
