Oil rose more than 1% after US data caused the USD to fall
Oil prices rose more than 1% on Thursday after US retail sales data prompted a sell-off in the dollar, although investors also eyed an International Energy Agency (IEA) report showing Oil demand growth is slowing this year.
Brent crude oil ended the session up 1.26 USD, equivalent to 1.5%, to 82.86 USD/barrel. US West Texas Intermediate crude rose $1.39, or 1.8%, to $78.03.
The US dollar index fell about 0.3% this session after data showed US retail sales fell more than expected in January. A weak dollar often causes prices for goods measured in US dollars to fall. The USD rises because these goods then become cheaper for holders of other currencies.
The U.S. Commerce Department’s Census Bureau said Thursday that retail sales fell 0.8% last month. December retail sales data was also adjusted down to an increase of only 0.4% instead of 0.6% as previously reported.
This data again sparked optimism that the Federal Reserve will cut interest rates in the future, which will positively impact oil demand.
Gold rose again above 2,000 USD
Gold prices also rose after the U.S. dollar and Treasury yields fell, while the market’s focus turned to comments from Federal Reserve officials looking for signals on when the Fed will interest rate cuts.
Spot gold ended the session up 0.6% to 2,004.05 USD/ounce; April gold futures increased 0.5% to 2,014.9 USD.
At least three more Fed officials are scheduled to speak later this week.
Copper increased sharply
Copper prices continue to increase due to the decline in the US dollar. Three-month copper futures on the London Metal Exchange (LME).
Ending the session up 1.4% to 8,313 USD/ton – the largest daily increase in three weeks.
In addition to falling USD and US Treasury bond yields, steady production demand from the world’s top copper consumer – China – is also supporting metal prices.
China’s official purchasing managers’ index (PMI) recovered slightly in January compared to the previous month, but remained below the 50-point threshold – the level that separates growth from contraction.
LME daily data showed copper inventories at LME-registered warehouses fell to 132,525 tonnes, the lowest since September.
Wheat fell, corn and soybeans hit new three-year lows as the US forecast abundant supplies
Corn and soybean futures fell to their lowest prices in more than three years as traders remained worried about demand after the US released forecasts showing rising inventories.
At its annual outlook forum, the US Department of Agriculture predicted US corn stocks will increase about 17% from the end of the 2023/24 marketing year to 2.532 billion bushels at the end of 2024/25, the highest level since the 2023/24 season. 1987/88. USDA also said ending soybean inventories are expected to increase 38% to 435 million bushels by the end of the 2024/25 marketing year, the highest level since 2019/20.
Closing Thursday’s session, soybean prices fell 8-1/4 cents to 11.62-1/4 USD/bushel, while corn prices fell 6-1/2 cents to 4.17-3/4 USD/bushel. Wheat also fell 18-1/2 cents to $5.67/bushel.
Raw sugar lowest in a month
ICE raw sugar futures prices fell more than 2% on Thursday, hitting a one-month low as technical signals suggested prices would decline. However, the decline was limited by export delays in Brazil and poor harvests in Thailand.
At the end of the trading session, raw sugar futures for March decreased by 0.55 cents, equivalent to 2.4%, to 22.82 cents/lb. Previously, the price had hit the lowest level since mid-January, at 22.82 cents/lb. 75 US cents.
May white sugar futures decreased 2.2% to 630.60 USD/ton.
Coffee increases
The May Arabica coffee futures price on ICE increased by 2.35 cents, equivalent to 1.3%, to 1.8515 USD/lb.
Rain in the world’s top Arabica coffee producer, Brazil, is boosting coffee prospects, while rising ICE-certified stocks are also putting pressure on prices.
Robusta coffee futures in May on the London exchange increased 0.6% to 3,108 USD/ton.
Rubber increased for the 4th consecutive session
Rubber futures in Japan rose for a fourth straight session, driven by stronger domestic stocks and a weak yen, although weak GDP data and falling oil prices limited gains.
Rubber contracts delivered in July on the Osaka Exchange (OSE) closed up 0.8 yen, equivalent to 0.28%, to 288.8 yen (1.92 USD)/kg.
The Nikkei average closed up 1.21% at 38,157.94, near the record high reached in December 1989.
The yen rose to 150.09 against the dollar, but remained hovering near the key 150 level.
Prices of some key items on the morning of February 16:
