Oil prices rise
Oil prices remained firm, but had a week of declines due to a strong dollar and concerns that an economic recession would reduce demand for crude oil.
Closing the session on August 19, Brent crude oil gained 13 US cents to 96.72 USD/barrel and West Texas Intermediate crude oil increased 27 US cents to 90.77 USD/barrel. However, for the whole week, oil prices fell 1.5%.
The dollar rose to a five-week high, also limiting oil price gains, making oil more expensive to buy in other currencies.
Natural gas price highest in 14 years
U.S. natural gas prices rose 2% to a 14-year high, as global gas prices hit record highs, concerns about Russian gas going to Europe and forecasts of hotter U.S. weather, will boost U.S. natural gas prices. push the demand for air conditioners to early September 2022.
The price of natural gas for September contract on the New York Stock Exchange rose 14.8 US cents, or 1.6%, to $9,336 per mmBTU – the highest since August 2008. For the whole week, natural gas prices increased by 6% after rising 9% in the previous week.
Since the beginning of the year, natural gas prices have increased by 150%, due to the increase in gas prices in Europe and Asia, boosting export demand for liquefied natural gas (LNG) in the US. Global gas prices rose due to supply disruptions and the Russia-Ukraine conflict on February 24, 2022. Global gas prices hit a record high of around $75/mmBTU in Europe and $57/mmBTU in Asia.
Gold and silver prices fall
Gold prices fell for a fifth straight session, the longest losing streak since November 2021, driven by a strong dollar and interest rate hikes by the US Federal Reserve.
Spot gold on the LBMA fell 0.6 percent to $1,748.58 an ounce, after falling to its lowest since July 28, 2022 in early trading and December 2022 gold futures on the New York Stock Exchange. York fell 0.5% to $1,762.9 an ounce. For the whole week, gold prices fell 2.9% – the biggest weekly drop since July 8, 2022, after gaining 4 consecutive weeks before.
A stronger dollar makes gold less attractive to buyers.
Silver fell 2.2% to $19.09 an ounce. For the whole week, silver prices fell 8.3% – the biggest weekly decline since September 2020.
Copper price increases
Copper prices rose but had a weekly decline, due to strong demand in China.
Copper prices on the London floor increased 0.5% to 8,067.5 USD/ton. However, for the whole week, the copper price decreased by 0.3%.
The price of copper increased from a low ($6,955/ton) in July 2022, but since the beginning of the year, the price of copper has decreased by 17%.
In addition, the increase in copper prices was also due to copper inventories in Shanghai falling to 31,205 tons, compared with 41,811 tons the previous week.
Iron ore and steel prices both fell
Iron ore prices in Dalian and Singapore fell and saw their biggest weekly declines since mid-July 2022, raising concerns about falling demand for iron ore in China, as the country’s economy falters.
Iron ore futures for January 2023 on the Dalian bourse fell 2% to 673.5 yuan ($98.93 per tonne), in early trading touching 672 yuan per tonne – the lowest since July 27/ton. 2022.
At the same time, the price of iron ore for October 2022 on the Singapore floor decreased by 0.3% to 101.4 USD/ton.
Spot price of 62% Fe iron ore to China reached $103.5/ton – the lowest since July 22, 2022, consulting firm SteelHome said.
On the Shanghai bourse, rebar prices fell 2.5%, hot rolled coil fell 2.4% and stainless steel fell 0.5%.
A heat wave in the top steel-producing country – China – has caused power allocation, forcing some steel mills to shut down. This raises concerns about iron ore demand in the country. Analysts warn that iron ore demand in China remains weak due to forced steel output restrictions, a downturn in the real estate sector and Covid-19 restrictions.
Latest activity figures show that China’s economy unexpectedly slowed in July 2022, driven by Beijing’s zero-Covid policy and real estate crisis, before the energy crisis overshadowed growth prospects.
Rubber prices in Japan fell
Rubber prices in Japan fell in line with the downward trend of rubber prices in Shanghai, as fears of an economic slowdown in the top consumer – China – put pressure on the market.
The price of rubber for January 2023 on the Osaka floor decreased by 4 JPY, or 1.7%, to 226 JPY (1.66 USD)/kg. For the whole week, rubber prices decreased by 1.2%.
At the same time, the price of rubber for January 2023 on the Shanghai floor decreased by 185 CNY to 12,700 CNY (US$1,865)/ton.
After China’s economic data was lower than expected at the beginning of the week, rubber prices tended to decrease, putting pressure on the market.
Concerns about rubber demand in the top buying country – China – slowed down in the previous few months, due to prolonged restrictions affecting industrial activity and consumption. Chinese officials have called for more effective measures, including implementing growth policies to support efforts to revive the economy, which showed signs of weakening this week.
Coffee prices increase
The price of arabica coffee for December 2022 on the ICE floor increased by 1.5 US cents, or 0.7%, to $2,1335/lb. For the whole week, the price of coffee decreased by 4.5%.
At the same time, the price of robusta coffee for November 11/0222 on the London floor increased by 8 USD, or 0.4%, to 2,226 USD/ton.
Lowest price of raw sugar in 2 weeks
Crude sugar futures for October 2022 on ICE rose 0.32 US cents, or 1.8%, to 18.09 US cents/lb, after hitting a two-week low (17.61 US cents/lb) at the beginning of the session.
At the same time, the price of white sugar in October 2022 on the London floor increased by 11.2 USD, or 2.1%, to 550.1 USD/ton.
Wheat and corn prices up, soybeans down
Chicago wheat prices rose after hitting a six-month low in the previous session, but gains were capped by slowing US exports and rising Black Sea exports.
On the Chicago Mercantile Exchange, wheat prices rose 22 US cents, or 2.9%, to $7.71 per bushel. Corn prices rose 7-1/2 US cents or 1.2% to 6.23-1/4 USD/bushel. Meanwhile, soybean prices fell 1-1/4 US cent or 0.09% to 14.04 USD/bushel.
Palm oil prices rise
Palm oil prices in Malaysia rose, as a weaker ringgit supported prices, but palm oil prices fell 7.12% this week as crude oil and other vegetable oils fell.
Palm oil futures for November 2022 on the Bursa Malaysia exchange rose 41 ringgit, or 1.01%, to 4,084 ringgit ($912.83) per ton, the lowest in nearly two weeks.
The Malaysian ringgit fell to its lowest level since January 2017, making palm oil cheaper to buy in other currencies.
Prices of some key items in the morning of August 20:
