Oil increased 3% due to strong US economy and Red Sea tensions
Oil prices rose about 3% to their highest since December 2023 after US economic data showed faster-than-expected growth last quarter and as tensions in the Red Sea continued to disrupt trade. Global.
Brent crude oil futures prices increased by 2.39 USD, equivalent to 2.99%, to 82.43 USD/barrel. US West Texas Intermediate crude oil increased $2.27, or 3.02%, to $77.36.
Thursday’s data showed the U.S. economy grew at a faster-than-expected pace in the fourth quarter, a positive demand indicator that supported oil prices, Yawger said.
Oil prices also drew support from expectations that China’s economy is recovering after the central bank announced a deep cut in bank reserves on Wednesday.
Gold rose as Treasury yields fell following US GDP data
Gold edged higher as Treasury yields fell after U.S. GDP data highlighted a slowing pace of inflation, which could accelerate the Federal Reserve’s rate-cutting strategy.
Spot gold rose 0.2% to $2,015.56 an ounce by 1849 GMT. US gold futures prices increased 0.1% to 2,017.8 USD.
Benchmark 10-year Treasury yields fell after GDP data.
The US economy grew faster than expected in the fourth quarter amid strong consumer spending, with full-year growth at 2.5%. The report also showed that fourth quarter inflation pressure eased.
Lower interest rates reduce the opportunity cost of holding bullion.
The market expects the Fed to keep interest rates unchanged at its policy meeting on January 30-31, 2024 and is expected to cut interest rates by 89% in May, according to CME FedWatch Tool.
Spot silver rose 0.7% to $22.81 an ounce, while platinum fell 1.2% to $888.59 and palladium fell 2.5% to $938.39.
Copper fell as strong US data bolstered the dollar
Table of Contents
Copper prices fell on the back of a stronger US dollar as the world’s largest economy grew at a faster-than-expected pace in the fourth quarter of last year.
3-month copper futures on the London Metal Exchange (LME) moved sideways at 8,562 USD/ton, after touching the highest level of 8,599 USD since January 2, 2024.
Gold remains supported by China policy after a seasonal lull, said SP Angel analyst John Meyer.
In the LME, aluminum rose 0.1% to $2,232 a tonne, nickel rose 0.7% to $16,765, while zinc fell 0.1% to $2,583 and tin advanced 0.5% to $26,630. Lead lost 0.7% to $2,148.
Iron ore increased in Dalian, decreased in Singapore
Iron ore futures were mixed, with prices rising for the third consecutive session in China’s Dalian on expectations of a boost to the Chinese economy following the central bank’s stimulus move, while Singapore prices decrease lower.
Iron ore contracts delivered in May 2024 on the Dalian Commodity Exchange (DCE) increased 1.6% to 987 yuan (137.80 USD)/ton.
Iron ore on the Singapore Exchange decreased 0.07% to 1,35.10 USD/ton.
Coke prices fell 0.24% while coking coal prices increased 0.30%.
On the Shanghai Futures Exchange, rebar steel prices increased 0.69%, hot-rolled steel coils increased 0.79%, steel bars increased 1.33% and stainless steel decreased 0.31%.
Soybeans, corn, and wheat decreased
US soybean futures fell about 1.5% as strong competition from Brazilian supplies caused weak demand for US oilseed supplies, along with falling soybean oil prices.
Corn futures prices fell following soybeans. Wheat futures fell narrowly in tepid trading while Kansas City hard red winter wheat futures rose.
At the end of the session, the March 2024 soybean futures price of the Chicago Board of Trade (CBOT) decreased by 18-3/4 cents, equivalent to 1.6%, to 12.21-1/2 USD/bushel and soybean oil March 2024 futures decreased by 0.84 cents, equivalent to 1.8%, to 46.48 cents/pound.
Corn futures prices for March 2024 decreased 2-1/4 cents to 4.50 USD/bushel. Soft red winter wheat futures in March 2024 decreased 3/4 cent to 6.10 USD/bushel while hard red winter wheat futures in March 2024 increased 8 cents to 6.33-3/4 USD /bushel.
Soybeans fell after the US Department of Agriculture (USDA) reported US soybean export sales for the latest week at 560,900 tonnes, below a range of trade expectations, underscoring stiff competition from suppliers. Brazil’s leading global level.
Cocoa and sugar reduce prices
ICE London cocoa futures have retreated after setting a record high amid concerns that recent sharp price increases and high freight costs could curb demand. London cocoa in March 2024 closed down 71 pounds, or 1.9%, to 3,722 pounds/ton, after setting a record high last month at 3,834 pounds. March cocoa futures prices in New York fell 3.3% to 4,625 USD/ton after setting a 46-year high of 4,840 USD.
Dealers say the market’s rise has been fueled by poor harvests in West Africa, but there are some concerns that the extent of price increases could dampen demand. Rising freight rates due to the Red Sea conflict also added to costs for chocolate manufacturers.
Sugar futures prices for March 2024 decreased by 0.42 cents, equivalent to 1.7%, to 24.04 cents/lb after setting a 7-week high of 24.62 cents. White sugar futures in March 2024 decreased 1.5% to 675.30 USD/ton.
Brazil’s Central South sugarcane crushing output totaled 1.11 million tons in the first half of January 2025, up 152.3% from a year ago. Dealers said the market was supported by concerns that output in South Central Brazil could be lower than previously predicted in the upcoming season.
Vietnamese coffee continues to increase
Vietnamese coffee prices extended their upward momentum due to concerns about thin supply. Farmers in the Central Highlands, Vietnam’s largest coffee growing region, are selling coffee for 73,000-75,000 VND (2.97-3.05 USD)/kg, up from 71,000-72,900 VND last week.
Prices have moved higher as farmers have not sold beans to traders in anticipation of higher prices due to Red Sea tensions and low inventories in London, a trader based in the coffee belt said.
Many exporters are having difficulty securing enough coffee to fulfill signed contracts. Another trader said farmers are still holding about 70% of the coffee harvest in the 2023-24 crop year.
Robusta futures price for March 2024 delivered in March 2024 increased by 25 USD, equivalent to 0.8%, to 3,207 USD/ton, after previously peaking at 3,254 USD – the highest level since January 2008.
In Indonesia, Sumatra robusta coffee increased this week due to thin supply. Sumatra robusta coffee was offered at a premium of $500-520 for the February-March contract this week, compared to last week’s premium of $500.
Indian rice is at record high due to declining supply and solid demand
Parboiled rice export prices from top hub India rose to a record high this week on limited supplies and steady demand from Asian and African buyers, while prices fell in Vietnam and Thailand. Lan. India’s 5% broken parboiled rice variety was quoted at a record price of 533 – 542 USD/ton this week, up from 525 – 535 USD last week. India’s rice output is expected to fall this fiscal year for the first time in eight years, raising the prospect of New Delhi extending grain export restrictions to control food prices ahead of the election.
Vietnam’s 5% broken rice was offered at 630 USD/ton, down from 653 USD/ton a week ago. Traders note that domestic supplies are accumulating and the harvest has partially begun in the Mekong Delta, expected to peak in March 2024.
“Trading activity slowed down as buyers were waiting for prices to fall further in anticipation of stronger supply from the upcoming winter-spring harvest,” a trader based in Ho Chi Minh City said.
The price of Thai 5% broken rice was quoted at 663 – 665 USD/ton, down slightly from 665 USD last week. Prices fell due to the weakening baht, a Bangkok-based trader said.
Rice prices in Bangladesh remain high after a sharp increase last week despite good yields and record stocks, prompting Prime Minister Sheikh Hasina to order immediate action against rice hoarders.
Rubber-Japan highest in 3 years
Japanese rubber futures maintained gains for seven consecutive sessions and rose to a nearly three-year high, as Beijing’s economic stimulus measures bolstered hopes of economic recovery in consuming countries China’s top rubber, while higher oil prices and a weaker yen also provided support.
Rubber price delivered in June 2024 closed up 9.5 yen, equivalent to 3.41%, to 288.4 yen (1.95 USD)/kg, the highest closing since February 25, 2021. Rubber price on the Shanghai futures exchange (SHFE) for delivery in May 2024 increased by 190 yuan, ending at 13,760 yuan (1,921.44 USD)/ton.
Rubber futures contract at SICOM delivered in February 2024 closed at 154.40 US cents/kg, an increase of 0.39%.
Prices of some key items on the morning of January 26, 2024
