Energy: Oil price fluctuates slightly
Oil prices only changed slightly in the past session after data showed an unexpected increase in US crude inventories, raising concerns about fuel demand amid pandemic. However, the US stimulus measures continue to be factors preventing oil prices from falling.
At the close of the session on January 21, Brent oil rose 2 US cents to 56.1 USD / barrel; West Texas Texas oil (WTI) fell 18 cents to 53.13 USD / barrel.
Data from the US showed that the country’s crude oil inventories rose 2.6 million barrels in the past week, contrary to the forecast of analysts of 1.2 million barrels.
The compliance rate of the Organization of Petroleum Exporting Countries and Allied Countries (OPEC +) in December 2020 decreased compared to the previous month, reaching only 99%.
Meanwhile, the number of Covid-19 infections in China is increasing, causing concerns about the demand outlook as it is the world’s largest crude oil import market.
Gold decreased because investors took profits
Gold prices fell off the 2-week highs in the last session as investors closed their profits after the previous bullish session, amid a forecast for the US to further stimulate the economy and the dollar. Weakness prevents the price of gold from falling deeply.
At the end of the session, the spot gold price dropped by 0.2% to $ 1,867.56 / ounce, after reaching the highest level since January 8 at $ 1,874.86 / ounce; gold futures in February 2021 stood firm at 1,865.90 USD / ounce.
Gold is seen as a safe haven asset for investors when high inflation and dollar depreciation – things can happen when Mr. Joe Biden attempts to boost the stimulus of the US economy.
Copper fell on doubts about China’s demand outlook
Copper prices fell in the last session due to the judgment that demand in China – the largest copper consumer in the world – may have peaked. However, the discount is limited by a weaker USD and a decrease in the amount of copper stored on the London floor.
At the end of this session, copper prices for delivery after 3 months on the London floor fell 0.2% to $ 8,028 / ton.
The amount of copper stored on the London floor has decreased by nearly half since October last year, now 91,150 tons, the lowest since September 2020.
Iron ore surged due to typhoon in Australia
Iron ore prices in China increased in the past session amidst Australia – the main supplier of iron ore to this market – is preparing to respond to a major tropical storm. However, the price has only increased moderately due to concerns about an increase in the number of Covid-19 infections in China, and the low margins of the Chinese steel industry.
Iron ore futures in May 2021 – the most traded – on the Dalian stock exchange, increased by 0.9% to 1,061 CNY (164.24 USD) / ton; iron ore term 2/2021 on the Singapore floor also increased 0.9% to 167.43 USD / ton.
Australia’s Hedland Port – the world’s largest iron ore shipping hub – is holding large ships anchored there, after weather forecasters said there would be a Category 1 or 2 tornado that could fall. set on the coast of Pilbara on January 22.
“Market is concerned about an outbreak of Covid-19 virus infection in China because it could affect steelmaking facilities,” said Daniel Hynes, senior commodity strategist at ANZ. where blockade measures are applied. According to Mr. Hynes, although major storms in Australia can affect the supply chain, but falling demand before the Lunar New Year will have a negative impact on iron ore prices, risking prices down to 156 USD / ton by the end of this quarter ” , from $ 171.5 / ton at present.
Soybeans increased due to decreased supplies from South America
Soybean price ended the last session on the Chicago floor slightly increased after a series of 3 previous declines. Specifically, the reference soybean contract on the Chicago floor increased 3/4% to 13.70 – 4 USD / bushel. At the beginning of the session, there was a time when the price increased by 18 US cent because the US Department of Agriculture announced that US private sold 136,000 tons of US soybeans to China and 163,290 tons to Mexico, the same term delivered in the 2020/21 crop.
After prices rose sharply at the beginning of the session due to that information, prices turned to go down at the end of the session due to the news that South America had rained, alleviating concerns about supply.
Sugar drops
Raw sugar price in March 2021 decreased 0.22 US cent (1.3%) in the last session, down to 16.05 US cent / lb; white sugar delivered in the same period also decreased 5.70 USD to 450.30 USD / ton.
Sugar traders said that the recent upward trend in prices has reversed, as India is looking to increase sugar exports to the world amid rising inventories.
Some information shows that India has signed export contracts with a total volume of 2 million tons.
However, Czarnikow on January 21 forecasts Brazil’s sugar production in the 2021/22 crop year will decrease 6% to 36 million tons.
Arabian coffee increased, robusta decreased
Arabica coffee futures price in March 2021 increased 1.25 US cent (1%) to 1.2645 USD / lb, reversed after 2 previous consecutive declines. Brazil’s coffee output is forecast to plummet 30.5% this year, to 43.8 million 60-kg bags. The amount of coffee stored on the ICE floor is currently at 1.57 million bags.
Contrary to arabica, robusta session yesterday fell 17 USD (1.3%) to 1,323 USD / ton.
In Asia, coffee prices were almost unchanged this week. Accordingly, coffee growers in the Central Highlands sell buckwheat kernels for 31,200-32,000 VND (1.35- 1.39 USD) / kg, unchanged from last week; traders in Vietnam offered the price of Robusta coffee type 2 (5% black and broken) at a plus level of 80 – 90 USD / ton compared with the March contract on the London floor, down from +100 USD 110 of the week before.
Indonesia offered Robusta term in March 250 USD / ton higher than London, while it was 290 USD / ton higher in April.
Trading activity in both Vietnam and Indonesia was quiet. The lack of a container significantly contributed to a less active coffee transaction, while Indonesia had to wait until March to harvest a new crop.
Cotton 2 year highest due to weakening USD
Cotton prices on the New York floor last session increased to the highest level in more than 2 years due to the depreciation of the USD and the increase in the global stock market.
Cotton futures in March 2021 rose 1 US cent (1.2%) to 82.59 cents / lb at the end of the session, after some time earlier to 83.06 US cents, the highest since September 2018. .
Rubber increased due to hope in Mr. Biden
Rubber prices in the Japanese market increased in the last session because the hope that Mr. Biden will increase the programs to stimulate the US economy.
Ending this session, rubber futures in June 2021 on Osaka floor increased 3.8 JPY (1.6%) to 241.9 JPY / kg. On the Shanghai floor, May contract also increased by 55 CNY to 14,745 CNY / ton.
Prices of some key items in the morning of January 22
