Oil down 2%
After touching a seven-week high, oil prices fell 2% on Tuesday (May 17) following news that the United States may ease some restrictions on the Venezuelan government, stoking hopes that the market could recover. may have some additional supplies.
Prices also fell after Federal Reserve Chairman Jerome Powell warned the economy could be hurt by efforts to reduce inflation and the US central bank would “continue to push” to tighten monetary policy. U.S. currency until inflation is markedly reduced.
For the first time since May 2020, the price of Brent oil – the reference for the international market – becomes cheaper than the price of West Texas Intermediate (WTI).
Accordingly, the price of Brent oil ended the session down $2.31, or 2%, to $111.93 per barrel, while US WTI fell $1.80, or 1.6%, to $112.40. /bin.
Gold moves in the opposite direction
Gold prices fell, pressured by positive US retail sales data and expectations of strong interest rate hikes, but a weaker dollar kept gold prices from falling.
Spot gold ended the session down 0.5% at $1,815.19 an ounce; but gold for June delivery continued to increase 0.3% to $1,818.9.
U.S. retail sales surged in April, suggesting demand remains strong despite high inflation and easing some concerns that the economy is heading into recession.
Ryan McKay, commodity strategist at TD Securities, said gold appears to have come under some pressure since the data came out.
Fed Chairman Jerome Powell said on Tuesday (May 17), adding that the Fed will consider taking more aggressive action if inflation does not fall in a clear and convincing manner. Gold is seen as a hedge against rising inflation, but an increase in interest rates leads to a higher opportunity cost of holding non-yielding bullion.
Copper rises as China eases anti-COVID restrictions
Copper prices rose as the world’s top metal consumer – China – eased restrictions against the COVID-19 epidemic, especially the blockade, raising hopes that metal demand will improve.
Shanghai on Monday (May 16) laid out a plan to end a more than six-week lockdown that has hurt the Chinese economy by disrupting supply chains and forcing factories to close. .
Three-month copper futures on the London Metal Exchange (LME) ended the session up 1.1 percent at $9,341 a tonne, after hitting its highest since May 6, at $9,418.
Aluminum price this session also increased by 1.7% to 2,881 USD/ton.
Wheat and soybeans continue to increase, corn to decrease
U.S. wheat prices continued to rise in the session on May 17, even after India said it would allow shipments of wheat pending customs clearance to export the goods abroad.
U.S. wheat prices traded on the Chicagco Exchange initially fell slightly, but reversed upward to close the session up 30 US cents to 12.77-1/2 USD/bushel.
India on Saturday (May 13) announced a ban on wheat exports, just days after it said it was targeting a record 10 million tonnes of exports this year, as a scorching heat wave slashed production. volume and domestic prices reached record highs.
On Tuesday (May 17), the Government of India said it would only allow exports of shipments backed by letter of credit (LC), or payment guarantee, issued before May 13. — including about 1.8 million tons of grain stuck at ports. (Full story)
Corn prices this session fell 8-3/4 cents to 8.00-3/4 USD/bushel, while soybeans increased 21-1/2 cents to 16.78 USD/bushel.
Arabica coffee increases due to the risk of Brazil having frost
The price of arabica coffee futures on the New York Stock Exchange (ICE) rose to the highest level in recent weeks, after having risen 5% in the previous session as investors remained worried about the risk of a current event. frosty weather this week in the world’s leading producer – Brazil.
Arabica coffee for July delivery ended up 2.4 cents, or 1.1%, at $2,272/lb, after hitting a three-week high at $2.2935.
Robusta coffee delivered in July increased by 17 USD, or 0.8%, to 2,104 USD/ton.
Rubber futures-Japan extend gains on stronger Shanghai market, yen weaker – Reuters News
The price of rubber traded in Japan increased according to the price trend in Shanghai when the development of the COVID-19 epidemic improved.
Accordingly, rubber for October term on the Osaka floor ended the session up 0.9 yen, or 0.4%, to 244.9 yen ($1.89)/kg.
The rubber contract for September delivery on the Shanghai Futures Exchange rose 80 yuan to 13,070 yuan ($1,935.69) a tonne, after hitting a peak since April 22 at 13,135. yuan.
Rubber for June delivery on the Singapore Exchange’s SICOM platform ended the session at 161.8 US cents/kg, up 1.6%.
Iron ore increased
China’s iron ore prices rose in the past session on optimism that demand will improve amid the easing of the anti-COVID-19 lockdown policy. At the end of the session, September iron ore on the Dalian Exchange rose 0.9 percent to 829 yuan ($122.62) a tonne, after hitting its highest since May 6 at 849. yuan.
Contrary to prices in China, on the Singapore Exchange, the most traded iron ore contract – June futures – fell 1% to 128.65 USD/ton.
The price of rebar on the Shanghai trading floor this session also increased by 0.1%, while hot rolled coil increased by 0.4%, stainless steel alone decreased by 1.1%.
Prices of some key items in the morning of May 18:
