Oil prices continue to decline
Oil prices fell 2% after falling nearly 6% the previous session, as concerns about fuel demand overshadowed OPEC+’s decision to maintain oil production cuts, tightening supply.
Closing the trading session on October 5, Brent crude oil decreased 1.74 USD, equivalent to 2.03%, to 84.07 USD/barrel and West Texas Intermediate crude oil WTI decreased 1.91 USD, equivalent to 2.3%, to 82,000 USD/barrel. 31 USD/barrel.
Thus, in the past 10 days, Brent and WTI oil prices have both decreased by 10 USD/barrel, after increasing to nearly 100 USD/barrel by the end of September 2023.
In the previous session, oil prices fell more than 5 USD/barrel – the sharpest drop in more than a year, right after the meeting of the OPEC + ministerial council, the Organization of Petroleum Exporting Countries and allies led by Russia.
Natural gas price highest in 8 months
US natural gas prices rose 7% to an eight-month high, as inventories were lower than previously expected, production fell and cooler weather forecast will boost heating demand in the coming weeks.
The price of natural gas futures in November 2023 on the New York floor increased by 20.4 US cents, equivalent to 6.9%, to 3,166 USD/mmBTU – the highest since January 24, 2023.
Gold prices decreased for the 9th consecutive session, platinum was the lowest in 1 year, palladium was the lowest in 5 years
Gold prices fell for the 9th consecutive session, as US data showed tightening labor market conditions, raising concerns that the US Federal Reserve will keep interest rates at higher levels for a while.
Spot gold on the LBMA floor decreased 0.1% to 1,819.98 USD/ounce and gold futures for December 2023 on the New York floor decreased 0.2% to 1,831.8 USD/ounce.
Thus, since the gold price surpassed the important level of 2,000 USD/ounce in early May 2023, gold prices have dropped nearly 12%, as the interest rate statement from the US Federal Reserve boosted yields. US Treasury bonds reached a 16-year high.
Last week, the number of Americans filing for unemployment benefits increased modestly, while the layoff rate in September 2023 decreased, suggesting that labor market conditions remain tight. The market shifted focus to the non-farm payroll report in September 2023, which is expected to add 170,000 jobs.
Platinum prices fell 0.8% to 859.72 USD/ounce, after hitting a 1-year low.
Palladium prices fell 1.8% to a new 5-year low ($1,146.73/ounce).
Copper prices fell for the fourth consecutive session
Copper prices fell for the fourth consecutive session, due to concerns about demand in China and uncertainty about interest rates and global growth.
Copper price delivered after 3 months on the London exchange decreased 0.7% to 7,893 USD/ton, approaching the low in May 2023.
Since the beginning of the week until now, copper prices have decreased by 4.5% and had the strongest weekly decline since November 2022.
In addition, copper prices decreased because inventories in London increased to 169,900 tons – the highest since May 2022 and increased more than three times since mid-July 2023.
Rubber price in Japan is lowest in 1 month
Rubber prices in Japan fell to a one-month low, as market participants reacted to rising bond yields, despite recent easing.
Rubber futures price for March 2024 on the Osaka floor decreased by 4 JPY, equivalent to 1.7%, to 229.7 JPY (1.54 USD)/kg.
Rubber futures price for November 2023 on the Singapore exchange decreased 0.5% to 138.9 US cents/kg.
Asian stock markets rebounded from an 11-month low, as falling oil prices and falling US jobs data pulled US Treasury yields away from 16-year highs.
Coffee prices increased in Vietnam, Indonesia and London, and decreased in New York
The Vietnamese coffee market is still quiet, when the asking price and the buying price are far apart, because buyers are not willing to pay the price offered by the seller. Meanwhile, coffee prices in Indonesia increased due to limited supply.
Vietnam’s export robusta coffee price (type 2, 5% black & broken) is offered at an additional 200 USD/ton compared to the January 2024 futures contract on the London floor. In the domestic market, green coffee was sold for 64,800-66,700 VND (2.66-2.74 USD)/kg, up from 65,900-66,700 VND/kg a week earlier.
Vietnam’s coffee exports in the first 9 months of 2023 decreased by 7.3% over the same period last year, to 1.27 million tons, equivalent to 21.6 million bags (60 kg).
In Indonesia, the price of type 4 robusta coffee (80 defective beans) was offered at an additional 480 USD/ton compared to the November 2023 futures contract on the London floor, up from a week earlier due to limited supply.
In New York, Arabica coffee futures in December 2023 decreased by 0.3% to 1,459 USD/lb.
In London, robusta coffee futures for November 2023 increased 0.3% to 2,373 USD/ton, after hitting a 5.5-month low in the previous session.
Sugar prices increased
ICE raw sugar prices increased, supported by the prospect of tightening global supply, despite the weakening Brazilian currency.
Raw sugar futures price for March 2024 on ICE increased by 0.23 US cents, equivalent to 0.9% to 26.16 US cents/lb.
At the same time, the price of white sugar futures in December 2023 on the London exchange increased by 6.1 USD, equivalent to 0.9%, to 697.3 USD/ton.
Wheat and soybean prices increased, corn highest in more than a month
Wheat prices on the Chicago floor increased more than 3%, due to reports of new tensions in the Black Sea region.
On the Chicago floor, wheat futures price in December 2023 increased more than 3% to 5.78-1/4 USD/bushel. Corn futures price in December 2023 increased to 4.97-1/2 USD/bushel – highest since August 8, 2023. Soybean futures prices for November 2023 increased by 7-3/4 US cents to 12.8-3/4 USD/bushel.
Rice prices decreased in India and Thailand, but remained unchanged in Vietnam
The price of rice exported from India decreased, due to taxes imposed on recent shipments of parboiled rice, making customers unhappy.
In India – the leading rice exporter, the price of 5% broken rice is at a high level of 520-530 USD/ton, down from 525-535 USD/ton a week earlier.
In Thailand, the price of 5% broken rice fell to 585 USD/ton, down from 590-607 USD/ton a week earlier, as the baht fell to an 11-month low against the USD.
For 5% broken rice, the price of Vietnamese rice is at 610-620 USD/ton, unchanged from a week ago.
Palm oil prices decreased
Palm oil prices in Malaysia fell, due to reduced demand for tropical oil from top buyers such as India and China.
Palm oil futures price for December 2023 on Bursa Malaysia decreased 2.8% to 3,608 ringgit (763.6 USD)/ton.
In September 2023, palm oil prices decreased by 6.06% after 2 consecutive months of increases.
Prices of some key items on the morning of October 6
