Oil rose slightly
Oil prices rose slightly despite an increase in US oil inventories. The reason is because US inflation data increases the likelihood that the Federal Reserve will sharply increase interest rates.
Brent oil prices ended the session on July 13 up 8 cents to $ 99.57 a barrel, while Midwest Texas (USA) crude (WTI) increased 46 cents to $ 96.30 a barrel.
The physical oil market is still in a state of tight supply. Reference prices for major oils, such as Forties crude and US Midland crude, are trading at a premium relative to the futures market, painting a different picture than what’s happening in the market. Futures contracts, which are influenced by inflation data – are expected to prompt major central banks to raise interest rates aggressively.
This week, both the Organization of the Petroleum Exporting Countries and the International Energy Agency, in their monthly reports, warned that demand was weakening, especially in the world’s largest economies.
Gold recovers strongly
Gold prices rebounded strongly from 1-year lows as the USD fell at the end of the session after rising strongly at the beginning.
Spot gold ended the session on July 13 up 0.8 percent to $1,739.49 an ounce, rebounding sharply from its lowest since August 2021 at $1,707.09, when US inflation data was available. The announcement pushed the dollar up sharply to a new record high within many decades.
Gold futures for August 2022 rose 0.6 percent to $1,735.5.
US consumer prices rose very quickly in June, reinforcing the view that the US Federal Reserve will raise interest rates by 75 basis points later this month.
The dollar then fell back, boosting demand for gold among overseas buyers. Yields on US Treasuries also fell.
The lowest dong in 20 months
Copper prices fell to their lowest level since November 2020 as data showing US inflation at its highest in more than 40 years reinforces the possibility that the US will raise interest rates aggressively and that will stifle economic growth and metal demand.
Weak demand in China due to the COVID-19 lockdown and slowing growth are also weighing on copper prices, causing the metal to lose more than 30% of its value from its record high of $10,845, reaching until March.
Copper futures for three-month delivery on the London Metal Exchange (LME) ended July 13, down 0.2 percent to $7,342 a tonne, previously down to just $7,160.
China’s demand remains weak, the plus price of copper imported to Yangshan port compared to the price on the London floor has decreased to 64 USD/ton from 76.50 USD at the beginning of July, while the survey results of Reuters showed that analysts had lowered their forecast for China’s economic growth this year to 4%.
Coffee rose
September arabica coffee futures rose 2 US cents, or 1%, to $2.0735/lb, extending the rally from two-month lows of $2.0475 touched on Tuesday. 12/7).
ICE certified stocks fell by nearly 10,000 bags on July 13 to 759,695 bags, the lowest level since August 1999.
Robusta coffee delivered in September increased by 27 USD, or 1.4%, to 1,981 USD/ton.
Rubber hits “bottom” in 2 months
Rubber prices on the Japanese market fell to a trending near 2-month low in Shanghai amid concerns over the outbreak of the COVID-19 pandemic in China and Japan, and recession fears. global economy.
The December rubber contract on the Osaka floor fell 6.6 yen at the close, or 2.6%, to 243.8 yen ($1.8) per kilogram, after touching 243 at one point. 4 yen, lowest since May 19.
Rubber contracts for September delivery on the Shanghai futures exchange also fell 470 yuan to 12,190 yuan ($1,814) a tonne. During the session the price dropped to 12,035 yuan, the lowest since August 5, 2020.
Residents in financial hub Shanghai are increasingly worried about a persistent COVID-19 outbreak that causes dozens of positive cases a day, just weeks after a two-month citywide embargo was lifted. last month.
Lowest palm oil in 1 year
Malaysian palm oil futures futures fell more than 8% in the last session, to the lowest in more than a year, due to low palm oil exports in July and concerns about COVID-19 restrictions. The prolonged period in China caused the Dalian palm oil contract to sell off.
The price of palm oil for September futures – the reference for the global market – on the Bursa Derivatives Exchange (Malaysia) ended the session on July 13, down 354 ringgit, or 8.6%, to 3,762 ringgit (848.25). USD)/ton, the lowest closing level since July 1 of last year.
Corn and soybeans up, wheat down
U.S. corn prices rose 1.5% in the last session on concerns that hot dry weather in the US Midwest could reduce harvests. Soybean futures prices also recovered from their recent sharp decline – as the US Department of Agriculture’s monthly World Agricultural Supply and Demand Estimates report downgraded the global demand outlook for the crop. this.
However, wheat prices fell amid traders waiting for clearer information on the possibility of resumption of shipments from Ukraine on the Black Sea, after a period of disruption due to the war.
At the end of the session, the price of corn for December futures on the Chicago Mercantile Exchange rose 8-3/4 cents to 5.95-1/4 USD/bushel. Soybean prices also rose 6-1/2 cents to 13.49-1/2 USD/bushel.
The price of wheat futures 9 fell 3-1/2 US cents to 8.10-3/4 USD/bushel.
Cotton lowest level 1 year
U.S. cotton prices fell 5% in the last session, to a one-year low, affected by the prospect of softening demand for natural fibers and the impact of a stronger dollar on all markets.
Cotton for December delivery fell 1.34 US cents, or 1.5%, to 89.50 cents/lb.
China’s Ministry of Agriculture on Tuesday lowered its estimate for 2021/22 cotton consumption with a drop of 200,000 tons due to weak demand from textile manufacturers. China is one of America’s largest cotton consumers.
Iron ore recovers, steel continues to fall
Iron ore prices rebounded on Tuesday after data showed China’s exports grew at a faster-than-expected pace in June, stoking hopes of a rebound in demand for the manufacturing material. steel.
September iron ore contract on the Dalian Commodity Exchange (China) ended the session up 1.5% to 732 yuan / ton, after previously falling 3.9% to a low. most since February 28.
On the Singapore Exchange, the August iron ore contract rose 3.9% to $109.10 a tonne, after hitting a year low of $104.10 a tonne.
But persistent worries about weak steel demand in China have dragged down Shanghai steel futures, suggesting the iron ore recovery may be just a blip.
Construction rebar prices on the Shanghai Futures Exchange fell 2.1%, while hot rolled coil fell 2.3%. Stainless steel price this session increased by 1%.
Prices of some key items in the morning of July 14:
