Oil increased 1%
Oil prices rose about 1% after Iran seized an oil tanker off the coast of Oman, increasing the risk of escalating conflict in the Middle East.
Closing the session on January 11, Brent crude oil increased 61 US cents or 0.8% to 77.41 USD/barrel, while WTI oil increased 65 US cents or 0.9% to 72.02 USD/barrel.
Earlier in the session, both grades rose more than $2 a barrel but fell back due to a surprise rise in US inflation and reports that China would import less from Saudi Arabia.
Global trade decreased by 1.3% from November to December 2023 as rebel attacks on cargo ships in the Red Sea caused a decline in the volume of goods shipped in the region.
Barclays said the bank has lowered its Brent oil price forecast for 2024 by $8 to $85/barrel.
Gold decreased
Gold prices fell to a one-month low as the dollar rose after stronger-than-expected US inflation figures, while tough comments from Fed officials raised concerns that high interest rates may not change. after March.
Spot gold fell 0.1% to $2,024.99 an ounce after rising about 0.8% ahead of inflation figures. US gold futures in April closed down 0.4% to 2019.2 USD/ounce.
The USD index continued to rise after data showed US consumer prices increased more than expected in December, which could delay expectations of a US interest rate cut in March.
Cleveland Fed President Loretta Mester said it may be too early for the central bank to cut its policy rate in March.
The currency is weak due to the increase in USD
Copper prices fell from session highs as the USD rose after strong inflation data from the US could delay interest rate cuts by the Federal Reserve.
Copper delivered after 3 months on the London metal exchange LME decreased 0.1% to 8,366 USD/ton from a high of 8,460 USD/ton.
US consumer prices rose more than expected in December as rents maintained an upward trend. The Fed said an interest rate cut in March may be premature.
High interest rates strengthen the USD, making metals priced in USD more expensive for buyers in other currencies.
Abundant sugar supply on the LME market has created spot copper prices cheaper than the 3-month forward contract, this week the difference reached a record high of 108 USD/ton.
Iron ore recovered
Iron ore prices recovered after falling for five consecutive sessions, driven by the latest support for the real estate market and new hopes of monetary easing in China.
February iron ore futures in Singapore increased nearly 1% to 134.1 USD/ton, erasing previous losses. The price fell near the previous 4-week low of 131.5 USD.
The May iron ore futures contract on the Dalian Commodity Exchange, China, closed stable at 976.5 CNY (136.42 USD)/ton after falling to a 3-week low of 952.5 CNY.
China’s central bank has approved a CNY 100 billion loan, allowing companies in eight pilot cities to use the loan to buy commercial residential real estate that will be used for long-term rentals. .
Iron ore prices fell earlier in the session as steelmakers were not enthusiastic about stockpiling ahead of the holiday.
Expected rebar output of the mills surveyed fell 6.5% in January to 9.67 million tons, with the mills’ losses ranging from 100 to 200 CNY/ton, according to data from the private firm. Shanghai Steel Market Consulting.
In Shanghai, bar steel increased by 0.21%, hot-rolled steel coil increased by 0.4%, stainless steel increased by 2.45% while steel wire coil decreased by 0.65%.
Japanese rubber increased by 2%
Japanese rubber reversed a 2-day decline to increase more than 2%, prices supported by a broad-based increase and the prospect of strong auto demand.
The June rubber futures contract on the Osaka Exchange closed up 5.9 JPY, or 2.37%, to 255.2 JPY (1.76 USD)/kg,
In Shanghai, rubber for May delivery increased by 220 CNY or 1.63% to 13,695 CNY (1,913.22 USD)/ton.
China’s 2023 auto sales increased 12% from the previous year to 30.1 million vehicles, the China Association of Automobile Manufacturers said.
Rice prices are stable in Asian hubs
Rice export prices from major Asian hubs remained stable this week, as moderate demand was offset by falling supply.
In India, the price of 5% broken parboiled rice was offered at 510 – 517 USD/ton, unchanged from last week when the price increased to the highest level since October 2023.
In Vietnam, the price of 5% broken rice is offered at 653 USD/ton, also unchanged from last week.
A trader in Ho Chi Minh City said “we expect global demand for Vietnamese rice to remain strong this year, with prices at a level that can encourage farmers to expand production in the coming seasons.”
In Thailand, Thai 5% broken rice is offered at 648 – 650 USD/ton, little change from 650 USD last week.
Supply also decreased because the market waited for new crops to enter the market around February and March.
Robusta coffee fell slightly and is still near a 16-year high
March robusta coffee futures prices closed down 12 USD or 0.4% to 2,938 USD/ton, the price had reached 2,995 USD/ton in the previous session, the highest level since January 2008.
Arabica coffee futures in March increased 1.6% to 1.8405 USD/lb.
Vietnamese coffee prices rose this week following the trend in London due to limited stocks, as farmers hoarded goods amid shipping disruptions caused by tensions in the Red Sea.
Farmers in the Central Highlands are selling coffee at 69,800 – 72,000 VND (2.85 – 2.94 USD)/kg, up from 67,000 – 67,900 VND a week ago.
One trader said prices are increasing every day and the disruption will not be resolved soon. Farmers are selling but not in large quantities.
Traders have offered to sell type 2 robusta coffee with 5% black and broken beans at an additional 70 – 100 USD/ton compared to the March futures contract in London.
Vietnam exported 1.6 million tons of coffee in 2023, down 8.7% compared to 2022. Export turnover during this period increased by 4.6% to 4.2 billion USD.
In Indonesia, the premium for Sumatra coffee decreased to 550 – 600 USD/ton compared to the January and February futures contract, the premium a week ago was 600 USD.
Sugar increases
March raw sugar futures closed up 1.6% to 21.76 US cents/lb as the market continued to consolidate after falling to a 9-month low of 20.03 US cents last month.
Sugar output in South Central Brazil increased by 35% in the second half of December 2023 compared to the same period last year as factories extended the production season amid dry weather.
White sugar futures in March increased 1.6% to 622.9 USD/ton.
Prices of some key items on the morning of January 12
