Oil decreased due to Covid-19 spreading rapidly
Oil prices fell in the last session on fears that oil demand will weaken as New York imposes new restrictions on business activities spread rapidly by Covid-19, obscuring the positive impact from information on the progress of vaccination against Covid-19 epidemic vaccines.
Ending the session, the price of Brent oil fell 28 US cents (0.6%) to 49.97 USD / barrel, the previous session, the price set the highest peak since March this year, at 51 USD / barrel. West Texas America Oil (WTI) also dropped 21 US cents (0.5%) to 46.57 USD, after rising nearly 3% in the previous session. For the whole week, the price of Bent oil increased by 1.5%, while WTI oil increased by 1%, the 6th consecutive week of increase.
“The restrictions in New York are weighing on prices on December 11,” said Bob Yawger, director of energy futures for Mizuho in New York. New York Governor Andrew Cuomo has ordered restaurants in the city to stop eating food amid a growing number of SARS-CoV-2 infections.
Adding to the causes of pressure on oil prices in the past session is the increase in US crude inventories, the US oil and gas companies last week added the largest number of oil and gas rigs since January. now, and there is a risk that the UK will leave the EU without a deal.
Gold rose
Gold prices increased in the last session and for the 2nd week in a row for the whole week when investors believed that the US was about to have a new bailout package against Covid-19.
At the end of this session, spot gold price increased by 0.3% to 1,839.9 USD / ounce, earlier in the same session, price decreased by 0.6%; gold futures in February 2021 increased by 0.3% to $ 1,843.60 / ounce.
“We still believe that the stimulus will be in place and that will continue to be a key driver of gold and silver prices going forward,” said David Meger, Metal Trading Manager at High Ridge Futures. .
Earlier this week, gold prices reached $ 1,875 per ounce, but then came under pressure due to the USD’s recovery from its recent low. But then, the gold market quickly stabilized again, despite the dollar still going up. The dollar index this week increased for the first week in 4 weeks.
Copper fell because of profit selling and fear of a no-deal Brexit
Copper prices fell during the weekend session, from a multi-year high, driven by profit-taking amid fears as negotiations between the UK and the EU on a trade deal show the risk of fruitlessness, and the US still delayed in the introduction of a new stimulus package.
Global stock markets also declined due to this information.
Price of copper futures delivered after 3 months on the London floor fell 1.3% to 7,776 USD / ton at the end of the session, previously at a time it reached 7,973.5 USD / ton, the highest since February 2013.
“A lot of good news has impacted the market,” said Zurich-based analyst Carsten Menke. “Taking profits after such a strong rally is not surprising and today we were affected. a little bit because the stock market price drop “,” Normally, if you are in an overly optimistic mood then for the commodity futures market, a 10% correction is not unusual. ” .
Iron ore is high in historical record
Iron ore prices rose nearly 10% to exceed 1,000 CNY (152.95 USD) / ton for the first time in history due to concerns about scarce supply and steel demand in the second largest economy in the world. booming.
On December 11, iron ore futures prices in May 2021 – being the most traded – on the Dalian stock exchange, once increased by 9.9% to 1,042 CNY / ton, still up 4.4% at the close. compared to the previous session, and for the whole week, it increased by 6.4%, the 5th consecutive week of increase.
In the past month, iron ore prices have risen 25%, compared with this time last year is 65% higher.
Wheat increased due to concerns about Russia imposing export duties on maize and soybeans
US wheat prices rose sharply in the past session on concerns about a decline in global supplies after the US Department of Agriculture (USDA) lowered the outlook for grain stocks and Russia considered restricting exports.
Corn and soybean prices also went up in the last session due to prolonged limited supply, especially soybeans, because of concerns about a poor output outlook in South America due to dry weather at the beginning of the crop.
On the Chicago floor, wheat futures in March next year increased by 18 cents to 6.14-1 / 2 USD / bushel, the third consecutive session of increasing prices with an increase in these 3 sessions up to 7.8%, the most since July. Soybean futures for January 2021 rose 7-3 / 4 US cents to 11.60-1 / 2 USD / bushel, while corn futures in March rose 2-1 / 4 US cents to 4.23-1 / 2 USD / bushel.
For the whole week, wheat prices rose the most in 4 months, while maize increased for the 5th week in 6 weeks, while soybean decreased slightly for 2 consecutive weeks.
The decrease line is due to the investors avoiding risks
Raw sugar prices fell 1.5% in the last session because investors reduced their transactions because of concerns that there would be a risk in the context of news about India’s sugar export subsidy.
At the end of the session, raw sugar futures in March 2020 decreased 1.5% to 14.43 US cents / lb, after falling 2% in the previous session. White sugar futures in March also dropped by 1.4% to $ 395.8 / ton.
On the market, there is information that the Indian Government is getting closer to the announcement of sugar export subsidies – the program has long been delayed.
Although sugar prices are currently falling, there are growing opinions that the prices of these agricultural products will increase next year due to falling USD, inflation, La Nina and increasing demand from China.
Coffee increased
Arabica coffee futures in March increased 0.55 US cent (0.5%) to 1,216 USD / lb in the last session of the week due to Brazilian real price increases. Brazil’s coffee-growing state Minas Gerais continued to experience more frequent rains following a severe drought in October, but the grower said it was too late to improve its yield outlook next season.
Robusta coffee prices delivered in March also increased 6 USD (0.4%) to 1,357 USD / ton.
Reduced rubber
Rubber prices on the Japanese market decreased in the last session and for the whole week also dropped for the first week in 3 weeks due to the rapid spread of Covid-19 and uncertainty about the US economic stimulus package.
On the Osaka floor, May term rubber fell 3.3 JPY (1.4%) to 229.9 JPY / kg, for the whole week decreased by 10%. On the Shanghai floor, contracts for the same term increased 0.9% to 14,495 CNY / ton.
Prices of some key items on the morning of December 12
