Oil down 7%
WTI oil prices fell 7% to near $100 a barrel as President Joe Biden announced the release of the largest US strategic reserve ever and called on oil companies to ramp up production.
Closing the session on March 31, WTI crude oil for May delivery fell 7.54 USD/barrel or 7% to 100.28 USD/barrel after touching a low of 99.66 USD/barrel. Brent crude oil for the same term, which expires on March 31, fell $5.54, or 4.8%, to $107.91 a barrel. Futures for June contract fell 5.6% to 105.16 USD/barrel.
Both Brent and WTI had their biggest quarterly gains in percentage terms since Q2 2020, with Brent up 38% and WTI up 34% mainly after February 24, when Russia launched its military campaign in Ukraine.
The US released 180 million barrels of oil equivalent to global demand in two days, marking the third time Washington has opened its strategic reserves in the past six months.
In early May, the US will release 1 million barrels of crude oil per day for 6 months from the strategic reserve, in addition 30 million to 50 million barrels of oil could be additionally released by allies and partners.
Other members of the International Energy Agency may also release oil to make up for shortfalls in exports from Russia after the country was hit by sanctions.
Goldman Sachs said the move could help the oil market rebalance in 2022 but is not a permanent fix.
Analysts also point to low liquidity in this market causing prices to fluctuate too much.
Meanwhile, OPEC+ has agreed to maintain its current supply agreement and raise its oil output in May at 432,000 bpd.
Falling oil prices also worry about falling demand in China as Shanghai extends its Covid-19 lockdown.
Gold has the strongest quarter in nearly two years
Gold recorded its strongest quarterly gain since mid-2020 on worries about rising consumer prices and the crisis in Ukraine.
Spot gold rose 0.5% to 1,942.48 USD/ounce, for the whole month gold increased 1.8%. US gold for June futures closed up 0.8 percent at $1,954 an ounce.
The geopolitical situation has dragged on for a whole month and inflation figures continue to rise. So the overall sentiment in this market right now is that people are looking for safety.
The data showed US consumer spending slowed significantly in February, while price pressures continued to mount, with the biggest annual spike in inflation since the early 1980s.
Aluminum has the strongest quarter since 1988
Aluminum prices posted their strongest quarterly gain since 1988, driven by supply disruptions and increased production costs due to Russia’s military campaign in Ukraine.
Meanwhile, nickel had its biggest quarterly gain since 2009, as buying pressure on the London metal exchange LME sent prices soaring this month.
Russia produces about 6% of the world’s aluminum and 10% of nickel along with other metals, energy and grains.
Sanctions against Russia cause the price of energy used in smelters to soar. High electricity prices forced some aluminum and zinc smelters in Europe to reduce output.
Aluminum on the LME exchange fell 1.6% to $3,493 a tonne, up 24.4% for the quarter.
Nickel LME fell 2% to $32,250/ton and increased 55% in Q1.
Both metals hit record highs in March, although nickel was de-traded by the LME after a spike on March 8.
The prices of metals could rise further as inflation, tight supply and the risk of sanctions continue to limit Russian supply.
LME copper rose 0.1% to $10,374 a tonne and gained about 6% in Q1. Prices hit a record high in March.
Iron ore has the strongest quarterly increase in 5 quarters
Dalian iron ore rose on March 31, boosting the first quarter of 2022 to increase the most since the end of 2020, while iron ore in Singapore is around $ 160 as traders expect China to add more support policies. support the economy.
Iron ore rose further as Beijing pledged to roll out policies to stabilize the economy as soon as possible to counter downward pressure on prices.
China, the world’s largest steel producer, will brace for the possibility of greater uncertainty over its economy, according to a State Council meeting chaired by Premier Li Keqiang.
The September iron ore contract on the Dalian Commodity Exchange closed up 3.3% at 897 yuan ($141.43) a tonne, after touching 912.5 yuan, its highest since June 6. August 2021.
On the Singapore Exchange, the May iron ore contract rose 1% to $161.65 a tonne.
Spot iron ore in China is at $155 a tonne, up 27% this year, according to data from consulting firm SteelHome.
Bar steel in Shanghai increased by 1.7%, hot rolled coil increased by 0.6%. Stainless steel fell 0.8%.
Japanese rubber increased
Japanese rubber prices hit 4-week high following an uptrend in Shanghai, while raw material supplies tightened from top producer Thailand, and were optimistic about domestic factory production data. .
The September rubber contract on the Osaka exchange closed up 3.6 yen, or 1.4%, to 259.9 yen ($2.13) per kilogram, the highest since March 3.
Production at some Chinese tire factories may be affected by the sharp increase in the number of Covid-19 infections, but there is some improvement in rubber consumption.
Raw material output from Thailand is also tight since many rubber operators take a break until the end of the country’s New Year in mid-April.
Rubber contract in Shanghai for September term increased by 230 CNY to 13,880 CNY ($2,188.1)/ton. During the session, the price reached the highest level since March 11 at 13,910 CNY/ton.
Coffee rose
May Arabica coffee futures closed up 4.55 US cents or 2.1% at $2,264/lb, continuing to recover from a four-month low in mid-March. However, the contract fell 4. .4% in March.
Logistics barriers to Brazilian coffee exports have eased, while concerns continue about coffee demand due to the Russia-Ukraine conflict and the blockade in China to curb Covid-19.
Below-normal rain in Brazil’s coffee-growing regions in March supported prices.
Robusta coffee for May futures rose $13 or 0.6% to $2,165 a tonne.
In Vietnam, the supply of coffee tightened this week as farmers who had sold most of their reserves are now hoarding in the hope that prices will rise.
Farmers in the Central Highlands sold coffee at 41,100 – 42,000 VND (1.8 to 1.84 USD)/kg, little changed from the 41,200 – 42,400 VND range a week ago.
Traders offer grade 2 robusta with 5% black and broken beans at a discount of $240 to $250 a tonne from July futures in London, unchanged from a week ago.
Coffee exports from Vietnam are estimated to increase 19.4% in the first three months of this year compared to the same period last year, reaching 541,000 tons. Coffee exports in March are estimated at 170,000 tons with a value of 394 million USD.
In Indonesia, the deduction has changed little because coffee is brought to the market from a small harvest. Robusta coffee from Lampung province for May delivery was sold at a discount of 150-160 USD/ton compared to the April and May futures contracts, the deduction was 150 USD/ton a week ago.
Slightly increased sugar
Raw sugar for May delivery rose just 0.1% to 19.49 US cents/lb.
The contract has risen 10% in March as sugar follows an upward trend in oil prices amid the conflict in Ukraine. High fuel prices may cause Brazilian mills to switch from sugar production to ethanol.
May white sugar futures rose $4.3, or 0.8%, to $541.5 a tonne.
Indian rice prices unchanged, Vietnamese rice prices down
Export prices in India were unchanged this week amid the prospect of increased supply and a stronger rupee, while rising inventories put pressure on Vietnamese rice.
In India, the price of 5% broken parboiled rice was offered at $367 to $370/ton this week, unchanged from last week.
The price of Vietnam’s 5% broken rice was sold at $400-415/ton, down from $415-$420/ton a week ago.
A trader in Ho Chi Minh City said that domestic supply is increasing thanks to output from the winter-spring harvest, while quality is affected by prolonged rain during the harvest period.
Preliminary export figures show that 72,000 tonnes of rice are intended to be loaded at the Ho Chi Minh City port in the first week of April, mainly to the Philippines and Africa.
Vietnam’s rice exports in the first quarter were estimated to increase 24% over the same period last year, reaching 1,475 million tons, with a turnover of 10.5% increasing to 715 million USD.
The price of Thai 5% broken rice is at $408-410/ton this week, compared with $408-412/ton a week ago. Demand for Thai rice is weak due to insufficient ships and high freight rates.
However prices remain high due to domestic demand for broken rice for animal feed due to logistical problems with imports. The supply situation remains unchanged with a new harvest due this week.
Corn rose while soybeans and wheat fell
Soybean prices on the Chicago Mercantile Exchange fell to a one-month low, after the US Department of Agriculture predicted that farmers could increase plantings to a record this spring.
CBOT May soybeans closed down 45-3/4 US cents at 16.18-1/4 USD/bushel after falling to 16.13-1/2 USD, the lowest level of this contract since February 28th.
CBOT corn for May futures rose 10-3/4 US cents to 7.48-3/4 USD/bushel, after rising to 7.7 USD, the highest in a week.
Winter soft red wheat for delivery in May fell 21-1/4 US cents to 10.06 USD/bushel.
Prices of some key commodities in the morning of April 1st:
