Oil rises again as US petroleum inventories fall
Oil prices rose on Wednesday, ending a string of losses, as US government data showed crude and gasoline inventories fell more than expected.
However, Brent is still about $3 a barrel below Monday’s close, as traders remain worried that global crude supplies could increase after the global trade wars. Negotiations between the Organization of the Petroleum Exporting Countries and its allies including Russia (OPEC+) were canceled without results.
Ending the session, Brent oil price increased 69 cents, or 0.9%, to 74.12 USD/barrel; West Texas Intermediate (WTI) oil rose 74 cents, or 1%, to $72.94 a barrel. Notably, at the beginning of the trading session on the same day, the price of 2 oils sometimes fell to the lowest level within 3 weeks.
U.S. Energy Information Administration data showed U.S. crude inventories fell 6.9 million barrels last week to 445.5 million barrels. Previously, analysts had forecast a drop of 4 million barrels. Gasoline stocks also fell 6.1 million barrels to 235.5 million barrels, while analysts forecast a drop of just 2.2 million barrels.
Gold down slightly but still near 3-week high
Gold prices fell in the last session, as US Treasury yields rose and Wall Street stocks rebounded slightly. However, a falling dollar and concerns about the US labor market kept gold prices at a near 3-week high.
At the end of the session, spot gold price fell 0.2% to 1,799.18 USD/ounce; Gold for August futures fell 0.1% to $1,800.20 an ounce.
The dollar index fell 0.3 percent and the 10-year Treasury note yield dropped to near a four-month low at some point in the session, helping gold prices initially hit their highest since June 17. 1,818.10 USD/ounce.
US jobless claims rose slightly last week to 373,000, above the 350,000 forecast expected by analysts in a Reuters poll.
The price of copper fell
Copper prices fell in the last session after the US Federal Reserve (Fed) confirmed its plan to tighten monetary policy earlier than initially expected, which will reduce liquidity in the market.
Copper futures for three-month delivery on the London Stock Exchange fell 1.3% to $9,334 per tonne.
The Fed’s move to a ‘hawkish’ stance was signaled at its June policy meeting, pushing the dollar higher since then and making the greenback-denominated asset more expensive for those in need. hold other currencies.
Reduced corn and soybeans
U.S. soybean prices fell on Tuesday on forecasts of cool weather in U.S. growing regions with rain, although drought in the Midwest still threatens to affect growth. of plants.
Meanwhile, the price of maize fell due to the recent rains which helped the maize plants to pollinate well.
Ending the session, the price of US soybeans traded on the Chicago Mercantile Exchange fell 7-3/4 cents to 13.19-1/2 USD/bushel; corn also fell 7-1/4 cents to 5.23-3/4 USD/bushel.
Lowest cocoa in nearly 1 year
London cocoa futures hit their lowest level in nearly a year while New York cocoa fell to an eight-month low as the market continued to struggle with oversupply.
Accordingly, September cocoa on the London floor fell 9 GBP, or 0.6%, to 1,584 GBP/ton, the lowest level since July last year – when touching 1,572 GBP/ton.
Similarly, September cocoa on the New York Stock Exchange fell $1 to $2,295 a tonne at the close, hitting an eight-month low of $2,268 in one session.
The lowest line 1 week
October raw sugar futures fell 0.3%, or 1.7%, to 17.45 cents/lb, extending a downtrend away from a four-month high of 18.49 cents set last week. .
There are early signs of damage in the sugarcane crop in Brazil – the world’s top producer – as recent frosts have not been too severe.
The price of white sugar for August delivery also decreased by 5.50 USD, or 1.3%, to 433.20 USD/ton.
Coffee rose
The price of arabica coffee delivered in September ended the session up 2.3 cents, or 1.5%, to $1.5225/lb, extending the rally that started on Wednesday (July 7) after five sessions of declines. consecutive.
Robusta coffee delivered in September increased by 5 USD, or 0.3%, to 1,707 USD/ton.
Dealers say roasters may be waiting for the coffee to drop to $1.40-1.45 before buying, as they feel more confident after recent frosts have spread across the country. most of the coffee acreage in Brazil.
However, dealers also said that coffee sales were slow because many farmers decided not to sell after the recent price drop.
In Asia, Vietnam’s domestic coffee prices fell due to travel restrictions against Covid-19 and high transportation costs.
Farmers in the Central Highlands, Vietnam’s largest coffee growing region, this week sold coffee at VND34,600-35,500 ($1.50-$1.54)/kg, down from VND34,800-36,200/kg. previous week.
Rubber dropped due to fears of a re-emergence of Covid-19 because of a mutated virus
Rubber prices in Japan fell due to concerns about weakening demand due to the spread of Covid-19 cases of Delta variant.
Ending the session, December rubber on the Osaka floor fell 3.9 yen, or 1.8%, to 217.0 yen ($2.0)/kg.
One-month rubber on the Singapore floor this session also fell 1.2% to 161.4 US cents/kg, while rubber for September term on the Shanghai bourse rose 140 CNY to 13,395 CNY ($2,067)/ton .
Iron ore and coal drop on demand concerns
China’s coking coal and coking coal fell to a one-month low, while iron ore fell 3.6% as falling steel output at some mills raised concerns about demand for the raw materials. steel production.
According to Zhuo Guiqiu, an analyst at Jinrui Capital, a major steel producer in eastern China was urged to shut down blast furnaces following a government inspection. There is growing concern that demand for raw materials such as coke will continue to weaken due to the news that many places have tightened controls on steel production, he added.
The September coke contract – the most traded – on the Dalian Commodity Exchange closed down 5.3% to a one-month low of 2,472 yuan ($381.46)/ ton.
Coking coal prices also fell 5.3% at 1,831 yuan/ton, the lowest since June 9.
Iron ore futures on the Dalian bourse fell 2.9% to 1,188 yuan per ton, with a sharp drop of 3.6% in one session.
Steel rose
China’s control of steel production causes steel prices in this country to increase. Last session, the price of rebar used in construction, for October delivery on the Shanghai floor increased 1.0% to 5,393 yuan/ton; hot rolled coil increased 1.4% to 5,750 yuan/ton; Stainless steel for August delivery rose 2.6% to 17,135 yuan/ton.
Prices of some key items in the morning of July 9:
