Oil increased, gold decreased, rubber highest in 7 years

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Oil surged due to increased pressure in the Middle East

Oil futures rose as fighting continued to escalate in the Red Sea with the Iran-aligned Houthis stepping up attacks near Yemen, but gains were limited by a rise in US crude inventories.

Brent crude oil futures increased 64 cents or 0.77% to 83.67 USD/barrel. US West Texas Intermediate crude oil futures increased 70 cents or 0.9% to 78.61 USD/barrel..

US crude oil inventories rose 3.5 million barrels to 442.9 million barrels in the week ended February 16, 2024, the US Energy Information Administration said on Thursday, compared with analysts’ expectations. Analysis is for an increase of 3.9 million barrels.

US crude stocks have risen amid outages at major refineries that have left utilization rates at their lowest in two years, although plants will resume output soon.

Gold slid after US data signaled a strong economy

Gold prices eased from nearly two-week highs after low jobless claims showed a strong economy, while investors waited for more economic data to gauge the Bureau’s interest rate stance US Federal Reserve.

Spot gold fell 0.1% to $2,022.74 an ounce by 18:42 GMT, after hitting its highest since February 9 of $2,034.69 earlier in the session.

Gold futures fell 0.2% to $2030.70. US Treasury yields rose, making bullion more expensive for holders of other currencies.

Minutes of the Fed’s latest policy meeting released Wednesday showed a majority of central bank policymakers were concerned about the risks of cutting interest rates too soon.

In other precious metals, spot platinum rose 1.9% to $899.60 an ounce, palladium rose 2% to $968.40 and silver lost 0.3% to $22.80.

Iron ore continue decreased due to concerns about Chinese demand

Dalian iron ore futures prices fell for the fourth consecutive session amid concerns about steel demand in China, while prices in Singapore rose on the back of a falling dollar.

The May 2024 iron ore contract on China’s Dalian Commodity Exchange (DCE) closed down 1.49% to 893.5 yuan (124.28 USD)/ton.

Meanwhile, the benchmark iron ore price in March 2024 on the Singapore Exchange increased 0.15% to 119.25 USD/ton.

Prices of coking coal and coking coal rose 4.12% and 2.98%, respectively, on supply worries after China’s top coal-producing region, Shanxi, ordered mining companies to limit production. overproduction.

On the Shanghai Futures Exchange, steel bars rose 0.24% and stainless steel rose 1.17%, while steel bars and hot-rolled coils fell 0.15%.

Nickel hits 14-week high due to short selling in response to Russian sanctions

Nickel prices rose to a 14-week high as concerns about expanding US sanctions on Russia triggered buying activity.

Three-month nickel futures on the London Metal Exchange increased 2.8% to $17,395/tonne after hitting the highest since November 16, 2023 of $17,415 and surpassing the 100-day moving average of 17,054 USD.

LME aluminum fell 1.0% to $2,196.50/ton after the UK’s new sanctions package against Russia had no impact on the market.

Copper rose 0.4% to $8,580, zinc lost 0.4% to $2,386, lead rose 0.5% to $2,088.50 and tin fell 0.5% to $26,160.

US corn and soybeans are at their lowest in 3 years amid concerns about weakening US supply

U.S. corn and soybean futures fell to three-year lows on expectations of a rich harvest in South America and worries about demand, analysts said.

Wheat futures were mixed in tepid trade, expectations of new US sanctions on top global wheat exporter Russia as well as cross-market spreads for corn and beans soy sauce.

March 2024 corn futures prices in Chicago decreased 4-1/2 cents to 4.06-1/2 USD/bushel after sliding to 4.04-1/4 USD, the lowest since November 2020.

CBOT soybean futures for March 2024 decreased 12-1/2 cents to 11.48-1/4 USD/bushel after touching 11.47-3/4 USD, the lowest level since December 2020. CBOT wheat futures for May 2024 increased 3/4 cent to 5.78-3/4 USD/bushel.

CBOT corn and soybean prices have accelerated lower since early 2024 as harvest prospects in South America improved, despite stressful weather.

Rainfall expected over the next few days in Argentina’s Pampas region will likely boost the 2023/24 soybean and corn crops there, the Buenos Aires grain exchange said in a report this week.

Following a record-large US corn harvest in 2023, the prospect of rising grain stocks and falling Chinese feed demand has prompted speculators to build large net short positions in corn. and soybean futures.

Vietnamese coffee prices increased due to high demand and low supply

Vietnamese coffee prices increased this week due to higher export demand after the Lunar New Year, but some farmers are still holding on to beans in hope of higher prices.

Farmers in the Central Highlands, Vietnam’s largest coffee growing region, are selling beans for 81,600-82,500 VND (3.32-36 USD) per kilogram, up from 78,900-79,200 VND last week.

The situation may last until April when Indonesian farmers start selling coffee.

Another trader said the current weather is favorable for the tree.

Vietnam exported 238,266 tons of coffee in January, up 67.4% from a year earlier and 14.8% from the previous month, customs data showed. Revenue reached 726.6 million USD, an increase of 133.7% compared to January 2023.

Premiums for Sumatra robusta beans in Indonesia’s Lampung have jumped from last week, traders said, due to increased demand while farmers are still waiting for the coffee harvest.

A small coffee harvest in Lampung province and surrounding areas in the southern regions of Sumatra usually begins in March or April, and the main harvest usually begins around June.

In New York, Robusta coffee decreased 2% to 3,113 USD/ton and Arabica coffee decreased 2.6% to 1.8315 USD/lb.

Cocoa hits new peak due to bleak production outlook

The price of chocolate-making cocoa has surged to a new high, up over 10% just this week, due to a negative production outlook in the world’s second-largest grower.

London cocoa futures on the ICE exchange broke the psychological barrier of £5,000 while New York cocoa broke the $6,000 mark, as tight supply pushed both markets to new record highs.

Cocoa prices in London closed up 1.7% at 5,062 pounds per ton, after previously peaking at 5,100 pounds. Futures prices in New York ended little changed at $5,860/ton, after hitting a record of $6,020/ton.

Analysts believe London cocoa prices – which rose 70% last year and are up 50% year-to-date – will start to impact demand as chocolate makers plan to increase prices for their products to cover higher raw material costs.

Raw sugar prices increased 0.26% to 22.83 cents/lb after hitting a more than 1-month low of 22.11 cents. London refined sugar decreased 0.92% to 619.70 USD/ton.

Indian rice is at record high, Vietnamese rice is down

Parboiled rice export prices from India rose to a new record high this week due to limited supply and slightly improved demand, while Vietnamese prices fell due to increased inventories.

India’s 5% broken parboiled rice was quoted at a record level of 546 – 554 USD/ton this week, up from 542 – 550 USD last week.

Vietnam’s 5% broken rice was offered at 625 – 630 USD/ton, down from 637 – 640 USD a week ago.

“Supply is accumulating amid the winter-spring harvest, the biggest harvest of the year,” said a trader based in Ho Chi Minh City.

Some traders said they are slowing down their rice purchases from farmers in anticipation of domestic prices continuing to decline.

The price of Thailand’s 5% broken rice was quoted at 615 USD/ton, up slightly from 610 USD/ton last week.

Traders attributed the price increase to fluctuations in the local currency, while the demand situation remained thin and no major transactions took place. They also noted that new supply is expected to gradually enter the market next month.

Meanwhile, Bangladesh may import 500,000 tons of rice in the year to June to cool domestic grain prices, officials said. Earlier this month, the government cut rice import tax from 63% to 15%.

Japanese rubber highest in 7 years as Nikkei broke record, oil increased

Japanese rubber futures rose to a seven-year high after two days of decline, buoyed by a soaring domestic stock market and expectations the rally will continue this year, and high oil prices. than.

Rubber price delivered in July 2024 closed up 7.6 yen, equivalent to 2.57%, to 303.6 yen (2.02 USD)/kg, the highest since February 17, 2017. The highest level of the day was 307.5 yen, up 3.89% from the previous close.

Rubber price on the Shanghai futures exchange for delivery in May 2024 increased by 225 yuan to 13,760 yuan (1,913.61 USD)/ton.

Prices of some key products on the morning of February 23, 2024

Market on February 23: Oil increased, gold decreased, rubber highest in 7 years - Photo 1.

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