Oil drops
Oil prices closed lower after a volatile trading session, rising about $1/barrel after a Russian fuel export ban then the influence of Western economic news pushed oil down $1/barrel.
Closing the session on September 21, Brent crude oil futures in November decreased by 0.23 USD to 93.3 USD/barrel, while WTI oil decreased by 0.03 US cents to 89.63 USD/barrel.
Russia temporarily banned the export of gasoline and diesel to countries outside the four countries of the former Soviet Union with immediate effect to stabilize the domestic fuel market. The shortage will force Russian fuel customers to buy elsewhere, causing heating oil prices to increase by nearly 5%.
The Fed expects another interest rate hike at the end of the year to 5.5 – 5.75%. That could reduce economic growth and overall fuel demand. The dollar rose to its highest level since early March, making oil and other commodities more expensive for buyers using other currencies.
The U.S. Department of Labor said unemployment claims fell to an eight-month low last week, another factor that could encourage interest rate increases.
Oil prices are still supported by concerns about tight global supply in the fourth quarter. US crude oil reserves at Cushing, the WTI oil distribution terminal, are at their lowest level since July 2022 due to OPEC maintaining cuts. Quantity.
Gold retreated
Gold prices continued to fall for the third consecutive session as the USD and bond yields rose after the US Federal Reserve warned of an additional interest rate hike.
Spot gold decreased 0.5% to 1,919.78 USD/ounce. US gold futures in December closed down 1.4% to 1,939.6 USD/ounce.
Gold’s decline has continued to cause some liquidation of long positions.
The USD rose to a 6-month high, while 10-year US Treasury yields at a 16-year high put pressure on gold.
However, gold still maintains its ability to recover above the psychologically important level of 1,900 USD/ounce.
Copper fell to its lowest level since May
Copper prices fell to their lowest level in nearly 4 months in London as the US Federal Reserve signaled that policy would remain tight for longer, the USD rose to a 6-month high and metal inventories continued to increase.
Copper delivered after 3 months on the London Metal Exchange decreased 1.8% to 8,193 USD/ton after hitting 8,171 USD/ton, the lowest since May 31.
August economic data from China, the world’s largest metal consumer, showed signs of stabilization even as investment in the real estate sector slumped.
The highest USD index since March makes these greenback-denominated metals less attractive to buyers in other currencies.
LME copper stocks have increased since mid-July, reaching their highest since May 2022.
Iron ore and steel prices fell
Prices of iron ore, steel and steelmaking components in China fell, on risk sentiment after the US Federal Reserve signaled another interest rate hike later this year and tighter monetary policy. in 2024.
Investors said they had chosen to wait for details on China’s commitment to accelerate the implementation of more policies to strengthen the country’s economic recovery, while the real estate sector struggled. This country’s difficulties make them wary.
Iron ore futures for January 2024 on the Dalian Commodity Exchange closed down 1.9% to 854 CNY (116.93 USD)/ton, after increasing in the past two sessions.
In Singapore, iron ore for October delivery decreased about 3.4% to 117.7 USD/ton after holding above 120 USD/ton for 7 days.
China, the world’s top steel producer and metal consumer, will increasingly introduce more policies to strengthen its economic recovery.
Iron ore continued to rise this month after rising sharply in August thanks to China’s economic stimulus efforts, but the momentum appears to be fading.
However, analysts said iron ore prices remained supported amid low inventories at steel mills and additional demand ahead of China’s National Day holiday from September 29 to June 6. ten.
In Shanghai, rebar fell 2%, hot-rolled steel coil fell 2.3% and stainless steel also fell 2%.
Japanese rubber increased
Japanese rubber prices recovered amid talk of a business strategy in China, although Japan’s sluggish economy limited gains.
Rubber contracts delivered in February 2024 on the Osaka exchange closed up 0.6 JPY or 0.3% to 234.3 JPY (1.58 USD)/kg.
In Shanghai, the price of rubber delivered in January 2024 decreased by 180 CNY or 1.26% to 14,065 CNY (1,926.08 USD)/ton.
In top consumer China, there have been talks to accelerate the introduction of more policies to strengthen the economic recovery.
Rice export prices of Vietnam and Thailand decreased
Rice export prices from Vietnam and Thailand fell this week from recent highs, while restrictions on India’s parboiled rice exports have stalled the country’s operations.
India’s 5% broken rice was offered at a price of 525 – 535 USD/ton for the second consecutive week, still close to the record high of 520 – 540 USD/ton reached on August 31. New Delhi imposed a 20% tax on parboiled rice exports in August.
In Vietnam, 5% broken rice was offered at 610 – 620 USD/ton compared to 620 – 630 USD/ton a week ago. The Philippines’ recent move to impose a ceiling on rice prices has cooled Vietnam’s rice export prices. But tight supply and strong demand from other customers will keep prices from falling further.
Preliminary data show that 275,250 tons were exported at Ho Chi Minh City port from September 1 to 22, the majority of which were exported to Indonesia, Malaysia, the Philippines and Turkey.
The price of Thai 5% broken rice is offered at 605 USD/ton, down from 613 – 615 USD/ton a week ago. This decrease is due to the devaluation of the baht.
Meanwhile, rice prices in Bangladesh remain high, despite good output and record reserves.
Sugar increases
October raw sugar futures closed up 0.14 US cents or 0.5% to 26.93 US cents/lb.
India’s sugar output is expected to improve due to good rainfall in September. In addition, the government will require factories to sell more sugar reserves in domestic markets to lower prices.
However, India is unlikely to export sugar in the 2023/24 crop year as production will be less than the previous year.
Sugar prices have increased recently due to concerns that drier-than-normal weather will reduce output in India and Thailand.
In contrast, Brazil’s south-central region sugar output in the 2023/24 crop year is at 40.3 million tons compared to 39.45 million tons previously.
December white sugar futures increased 6.3 USD or 0.9% to 732.8 USD/ton.
Coffee reduced
December Arabica coffee futures closed down 3.35 US cents or 2.1% to 1.5485 USD/lb as the harvest in Brazil is nearly completed.
Brazil’s 2023 coffee crop reached 54.36 million bags, down from forecast figures in May.
Robusta coffee futures in November decreased by 44 USD or 1.8% to 2,464 USD/ton.
Coffee trading in Vietnam continued to be slow this week due to lack of reserves, traders waited for the new crop to start next month, while the premium decreased slightly in Indonesia.
Coffee prices continue to increase this week, farmers in the Central Highlands are selling coffee at 67,300 – 68,100 VND/kg, up from 65,300 – 66,500 VND a week ago.
In theory, the new crop in Vietnam starts in October, but it takes until the end of November for goods to reach the market.
In Indonesia, Sumatra robusta coffee was offered at a premium of 480 USD compared to the November futures contract this week, down 20 USD from a week ago.
Soybeans, corn, and wheat decreased
Chicago soybeans fell below $13/bushel for the first time in a month on disappointing weekly export numbers, an expanding harvest and worries about economic growth.
November CBOT soybean futures closed down 26-1/4 US cents to 12.93-3/4 USD/bushel after falling to 12.93 USD, the lowest level of this contract since August 8.
Wheat falls to 1.5-week low on selling, strong USD.
Soft red winter wheat closed down 13 US cents to 5.75-3/4 USD/bushel after falling to 5.75 USD, the lowest level since September 12.
Corn fell due to weak overall export demand coupled with concerns about global economic health. CBOT corn futures for December decreased 7 US cents to 4.75-1/4 USD/bushel.
Prices of some key commodities on the morning of September 21
