Oil rose due to economic optimism and limited supply
Oil prices rose in the past session due to strong US economic data, declining inventories and OPEC + ‘s decision to maintain output reduction, but a strong dollar has limited momentum.
Closing session 4/2, Brent crude oil rose 38 US cents to 58.84 USD / barrel, previously the price reached 59.04 USD / barrel, the highest since 21/2/2020. WTI oil rose 54 US cents to 54 USD / barrel after reaching 55.69 USD / barrel, the highest in a year.
Strong US production data and improving unemployment have supported oil prices.
The US Department of Commerce said manufacturing orders rose 1.1% after rising 1.3% in November 2020, exceeding expectations of economists, while Labor Department data showed the New US unemployment benefits fell in the most recent week. The rising USD has partly taken away some of the increase in oil prices.
The OPEC + organization has extended the supply pact at current levels, showing that producers are happy that the cuts are depleting inventories, while uncertainty remains on the outlook for a recovery. the need for a prolonged Covid-19 pandemic.
Gold fell below 1,800 USD
Gold prices fell below 2% to below a critical psychological support of $ 1,800 due to USD and US Treasury yields rising.
Spot gold fell 2.3% to $ 1,791.76 an ounce, after hitting a two-year low at $ 1,784.76. US gold futures in April closed down 2.4% to $ 1,791.2 / ounce. Silver fell 2.3% to $ 26.26 per ounce.
Silver prices have fallen more than 13% since reaching a nearly eight-year high at $ 30.3 / ounce on February 1. However, silver can benefit from industrial demand.
The dollar rallied above a 2-month high while long-term US Treasury yields rose on anticipation of a major pandemic bailout package from Washington and a stable US labor market.
Tin to the highest level in many years
Tin prices rebounded to their seven-year highs reached earlier this week, due to a severe material shortage in the London metal exchange system.
Inventory at LME stockpiles is near historic lows and traders are paying hefty premiums on contracts that promise quick deliveries.
Tin prices on the LME floor increased 0.2% to 22,985 USD / ton, the price reached 23,435 USD, the highest since 2014 on 2/2. Tin prices have risen 13% this year after rising 18% in 2020.
Prices may rise further with strong seasonal demand following the Lunar New Year holiday this month but will drop to around $ 20,000 by the end of this year.
Inventory on the LME system fell from 5,500 tons in October 2020 to 810 tons, close to a record low. However, inventories at the Shanghai trading floor increased in recent months to 6,155 tons.
The International Tin Association in December 2020 said that this market is expected to have a shortage of 2,700 tons in 2021 after a shortage of 5,200 tons in 2020.
Iron ore increased by more than 5%
Iron ore prices skyrocketed after Vale SA released weak annual production figures, as the Brazilian company struggled to increase production by curbing production during the pandemic and dam failure two years ago.
Iron ore on the Dalian Commodity Exchange closed up 5.3% to CNY 991 ($ 153.41) a ton after two days of decline.
In Singapore, iron ore increased 5.2% to 154.5 USD / ton.
Vale SA reported a 0.5% drop in iron ore production for 2020 to 300.4 million tons, despite a potential recovery in both volume and sales this year.
Yields fell 5% q-o-q due to increased rainfall and constraints on waste disposal.
Spot iron ore is also strong, at over $ 150 / ton on hopes of strong steel production outside of China.
A report shows that China’s central bank will keep reasonably ample liquidity to support the economic recovery also boosting sentiment.
Steel bar in Shanghai rose 2%, HR coil rose 1.3% and stainless steel rose 0.7%.
White sugar rose
White sugar futures price in March closed up 2.8 USD or 0.5% to 465.4 USD / barrel.
Supply of white sugar remains limited as strong demand and a shortage of shipping containers have prompted those who need sugar to search the exchanges.
Thailand’s sugarcane production is expected to recover in crop year 2021/22 as the plant pays the higher price of the planter which is seen as promoting cultivation.
Significant sugar sell-offs are unlikely to happen in the short term, dealers say, but sugar prices could retreat as the upcoming harvest from top producer Brazil takes place.
Raw sugar futures in March was stable at 16.05 US cent / lb.
Coffee increased
Robusta coffee futures in March closed up 20 USD or 1.5% to 1,343 USD / ton, rising sharply for the second consecutive session and reached 1,346 USD, the highest one month.
Agents said the robusta market was supported by strong domestic coffee consumption due to the pandemic, including increased instant coffee sales.
Arabica coffee futures in March changed slightly at 1,2405 USD / lb.
In Vietnam, domestic coffee prices were unchanged amid easing activity. Farmers in the Central Highlands sold coffee at VND 31,200 – 31,700 (USD 1.35 – 1.39) / kg, unchanged from the previous week.
Vietnam has blocked 2 remote districts of Gia Lai province after reapplying measures to limit corona virus last week.
Traders selling type 2 Robusta coffee with 5% black beans and broken at a plus $ 90-100 compared to the contract in May, up from 70 to 80 USD a week ago.
According to the General Statistics Office, coffee exports from Vietnam were estimated to have decreased by 17.6% in January compared to the same month a year ago, to 120,000 tons, or 2 million 60 kg bags / bag.
In Indonesia, 8055.9 tons of Robusta Sumatra coffee was exported from Lampung province in January, down 18% from a year ago.
Robusta in Lampung province was offered at a plus $ 250 against the March contract and at a plus $ 290 against the April contract, unchanged from the previous week, as supply remains tight ahead of the harvest .
Indian rice prices are at a 3-year high
Strong demand from Asia and Africa brought India’s rice export prices to a 3-year high this week, while Vietnamese exporters struggled to export due to rising freight prices amid shortages. container.
The price of 5% broken rice in India is offered at 402 – 408 USD / ton, the highest since May 2018. The state of Andhra Pradesh will use a deep-water port to export rice for the first time in decades amid a global grain scarcity, which could boost exports this year by 20%.
Bangladesh, which is struggling with limited supply, also bought more than 110,000 tons from India on the way home.
In which, the price of 5% broken rice in Vietnam increased to 510-515 USD / ton compared to 505 – 510 USD / ton in the previous week due to weak supply.
A trader in the Mekong Delta said “transactions are very slow because most of us have been off the Lunar New Year holiday, and buyers have stopped signing new contracts to wait for the next harvest”.
The harvest of the biggest winter-spring crop this year will peak at the end of February or early March. Exports are also hampered by high transport costs due to a shortage of containers.
Thailand’s 5% broken rice price rose to its highest level since the beginning of April 2020 at 535-564 USD / ton, amid concerns about low supply, while exporters were interested in a fight. Bidding from Iraq.
Prices of some key commodities in the morning of February 5
