Oil to a year high
Oil prices rose almost 2%, with WTI crude closing the highest in a year, after data showed US crude inventories fell to their lowest levels since March 2020, while OPEC + maintained the deal. cut their output.
Closing session 3/2, Brent crude oil rose 1 USD or 1.7% to 58.46 USD / barrel, in the session, the price was 58.94 USD / barrel, the highest since the end of February 2020. WTI crude oil rose 93 US cents or 1.7% to 55.69 USD / barrel, after reaching 56.33 USD / barrel, the highest level since January 2020.
According to the US Energy Information Administration, the country’s crude oil inventories fell last week to 475.7 million barrels, the lowest since March 2020. Meanwhile, the operating capacity of refineries increased by 0.6 percentage points.
The oil market was also supported by deep production cuts by OPEC and its allies. OPEC + expects the oil market to run out of shortages throughout 2021, peaking at 2 million barrels a day in May.
The market is also underpinned by news that Democrats in Congress have taken the first steps to boost a $ 1.9 trillion corona virus impact aid plan led by President Joe Biden. proposal without Republican support.
Silver rose, gold fell
Silver prices rose on expectations of global stimulus that would boost industrial demand, after prices plummeted from a nearly eight-year high in the previous session.
Spot silver rose 0.6% to $ 26.76 an ounce, prices fell 8% in the previous session.
The recent price volatility has attracted many new demand for silver. Silver prices rose to $ 30.3 on February 1 after retail investors attempted to recreate the price spike in GameStop style.
While silver moves concurrently with gold under normal circumstances, silver also closely follows economic clues for its industrial applications.
Reflecting the psychology is that the holding of the world’s largest silver trust fund rose to a record 57.8 million ounces on February 2.
Spot gold fell 0.2% to $ 1,833.93 / ounce. US gold futures in April closed up 0.1% to $ 1,835.1.
Uniform recovery
Copper prices rebounded after a three-day decline as some bearish investors canceled their contracts, partly because concerns about tight liquidity in China had receded.
Last week China restricted its regular liquidation pumps, but one banker said liquidity would remain ample.
Investors expect China to cool down credit growth and reduce the size of its fiscal stimulus this year to help stabilize debt.
Price of copper delivered after 3 months on the London Metal Exchange (LME) increased by 0.9% to 7,845.5 USD / ton. Some traders bought copper to cancel their short positions after the price held above the technical support zone of $ 7,675 – $ 7,700.
Iron ore decreased
Iron ore prices on the Dalian floor fell as a result of increasing shipments from the world’s largest suppliers of the steel-making component, including Brazil, and weakening demand in China ahead of the Chinese New Year holiday.
Iron ore prices at the Dalian Commodity Exchange closed down 0.9% to 948 CNY (146.77 USD) / ton, down for the second consecutive session.
Global iron ore supplies have been scarce since the late 2019 iron ore dam collapse at Vale SA’s Corrego do Feijao mine in Brazil, prompting that mine to close for safety inspections. That added pressure to increase prices last year, pushed up mainly by Chinese demand for this raw material,
Brazil’s iron ore exports in January totaled 29 million tons, compared with 26.7 million tons in the same month last year. Brazil’s supply may improve further as Bahia Mineracao begins production at a mine that is expected to produce 1 million tons in 2021.
Rising exports from Australia also help improve the overall supply outlook, with exports from the Pilbara region up 2% last month compared to the same month in 2020.
However, the price of iron ore in Singapore trading floor increased 1.4% to 146.35 USD / ton. Strong steel production outside of China also drives up demand for iron ore.
Steel bar on the Shanghai futures trading floor fell 0.2%, HR coil stabilized, while stainless steel fell 1.2%.
Reduced rubber
Japanese rubber prices fell after a report showed that the service sector in Japan decreased at the fastest speed since August 2020.
July rubber contract on Osaka trading floor closed down 3.2 JPY or 1.4% to 229.1 JPY (2.18 USD) / kg.
Japan’s service sector fell at the fastest pace for 5 months in January, as demand was severely damaged by the rebound of corona virus infections and emergencies in many parts of the country that affected. new orders.
The rubber contract in Shanghai for May delivery decreased by 2.3% to close at 14,300 CNY (2,215.30 USD) / ton.
Sugar drops
White sugar futures in March closed down 1 USD or 0.2% to 462.6 USD / ton.
Dealers say this market is being consolidated after the recent rise but prices remain strong due to scarce short-term supplies.
Commerzbank said strong demand coupled with container shortages in countries like India created a shortage of sugar in the market. This, the bank added, is causing customers to urgently need the way to search the exchange. In addition, output was disappointing in some regions such as Thailand and EU which are suppliers of white sugar.
Raw sugar futures in March fell 0.25 US cent 16.04 US cent / lb.
Coffee rose
Arabica coffee futures in March closed up 0.55 US cent or 0.4% to 1.2395 USD / lb.
Robusta coffee futures in March increased 24 USD or 1.8% to 1,323 USD / ton.
Dealers say the outlook remains favorable for robusta, as slow reopening in many parts of the world has spurred consumption of instant coffee, often produced with robusta.
It is also predicted that Brazil’s Robusta exports will decrease in 2021 as domestic roasters will tend to increase the proportion of robusta in their blends.
Soybeans increase
Soybean prices on the Chicago exchange rose as traders predicted the USDA’s monthly supply and demand report could show that global stocks continue to tighten.
CBOT soybean futures in March closed up 16-1 / 2 US cents to 13.71-1 / 4 USD / bushel.
Soybean meal same period increased 7.5 USD to 435.5 USD / ton US.
USDA is expected to report net soybean exports in the old season from 300,000 to 750,000 tonnes as well as the sale of 350,000 to 1.5 million tonnes for the new crop.
Argentina’s agricultural exports were disrupted because truck drivers blocked the way around the Buenos Aires ports of Bahia Blanca and Quequen, and the authorities had cleared roads near the country’s main export depot Rosario.
Prices of some key commodities in the morning of February 4
