Oil prices rose for the fourth consecutive session
Oil prices rose during the session on expectations that supply will remain tight this year.
Closing session 23/7, Brent crude oil increased 31 US cents or 0.4% to 74.1 USD/barrel. WTI oil rose 16 US cents or 0.2% to 72.07 USD/barrel. For the whole week, Brent crude rose 0.7% after falling for 3 consecutive weeks, while WTI gained 0.4% after falling for 2 consecutive weeks.
“Concerns about demand have been exaggerated, which is why oil prices have recovered,” Commerzbank said. Despite the increased oil supply, the oil market will remain a bit undersupplied until the end. this year”.
ANZ Research analysts said that the market finds OPEC+ gains not enough to keep the market balanced and inventories in the US and across OECD countries will continue to decline.
Energy services firm Baker Hughes said the number of US oil rigs rose to 387 this week, the highest since April 2020. But the rig count recovery was modest as producers prioritized limited spending.
Asian LNG prices rise
Spot liquefied natural gas (LNG) prices in Asia rose this week to their highest in more than six months, as hot weather boosted power plant fuel demand.
The average September LNG delivery price in Northeast Asia is estimated at $14.45/mmBtu, up $1.15 from the previous week, and is the highest since mid-January.
Temperatures in Tokyo, Seoul and Beijing – top consumers of LNG – are expected to be above average for the next two weeks, according to weather data from Refinitiv Eikon.
Natural gas prices in the US and Europe also increased amid hot weather.
Gold price drops
Gold prices fell due to stronger USD, higher Treasury yields.
Spot gold fell 0.3 percent to $1,800.72 an ounce. US gold for August futures closed down 0.2 percent at $1,801.8 an ounce. For the whole week, gold prices fell 0.7% after briefly reaching the peak of the previous week due to fears of an increasing number of Delta mutant infections. Investors are turning to riskier assets.
Gold holdings of SPDR Gold Trust, the world’s largest gold trust fund, on July 22 at the lowest level in more than two months.
Copper rose for the 4th session in a row
Copper prices rose for a fourth straight session as investors bet loose monetary policy would last, helping to spur economic recovery and metal demand.
Three-month copper on the London Metal Exchange LME rose 1% to $9,534.5 a tonne.
The European Central Bank on July 22 pledged to keep interest rates at record lows even longer to boost inflation.
The LME has fallen from a record $10,747.5 a tonne in May but is still up 22% year-to-date. Commerzbank analyst Daniel Briesemann predicts copper to fall in the coming months to around $8,500 a tonne.
Dalian iron ore has its worst week in 17 months
Dalian iron ore had its biggest weekly loss in 17 months as China stepped up its push to reduce steel output, prompting mills to cut output to avoid sanctions.
The September iron ore contract on the Dalian Commodity Exchange fell 2% to 1,124 yuan ($173.6) per ton, continuing its fifth consecutive decline. Prices have fallen about 10% from last week, the biggest drop since February 2020, and are now 17% down from their peak in May.
The August iron ore contract in Singapore fell 0.2 percent to $197.25 a tonne.
Leading steel producer China has stepped up efforts to reduce output of construction and manufacturing raw materials in line with its carbon emissions reduction target.
The government has asked steel mills to ensure output this year is no more than in 2020, after increasing output in the first half of the year by about 12% year-on-year.
According to consulting firm SteelHome, spot iron ore price with 62% Fe content in China fell to a 6-week low at 209.5 USD/ton on July 22.
Bar in Shanghai rose 2.2%, while hot rolled coil increased 1.7%, both having 4 consecutive weeks of price increases.
Coffee goes the opposite way
September arabica coffee futures closed down 4.65 US cents or 2.4% at $1.89/lb, hitting a more than 6.5-year high at $2,095 during the session. For the whole week, Arabica coffee increased by 18.5%.
A trader in Europe said that an estimated loss in the next crop of 3 to 5 million bags – equivalent to 10% of the total production of the season – could increase but not lower.
September robusta coffee futures closed up $10, or 0.5%, at $1,899 a tonne after hitting a nearly four-year high at $1,993 a tonne.
Sugar prices increase
Raw sugar for October delivery rose 0.55 US cents or 3.1% to 18.17 US cents/lb, the highest in two weeks.
While the frost has not caused damage to the current sugarcane crop, some dealers say it could affect the next crop, although damage to the cane will take time to assess and will depend on the extent of the damage. upcoming showers. Sugarcane is basically harder than coffee.
White sugar for October term closed up $10.7, or 2.4%, to $457.7 a tonne.
Wheat, corn, soybean all decreased
Wheat, corn, soybeans on the Chicago Mercantile Exchange fell due to improved weather.
Red soft winter wheat for September delivery closed down 8-1/4 US cents at $6.84/bushel. For the whole week, wheat fell 8-1/2 US cents or 1.23%.
November soybean futures fell 10-1/2 US cents to 13.51-3/4 USD/busehl. Exporters sold 100,000 tonnes of soybeans to Mexico in the 2021/22 market year. China’s soybean imports are likely to slow down in late 2021.
Sawed December corn futures fell 18-1/4 US cents to $5.43/bushel.
Prices of some key items in the morning of 24/7:
