Oil fell after gaining in the early session
Falling oil prices abandoned initial gains due to strong Chinese economic data and continued limited supplies from major oil producers.
Crude oil rose steadily throughout 2021 as major oil producers limited supplies and the distribution of the Covid-19 vaccine increased rapidly, sparking hopes for economies and stronger fuel demand.
Closing session 15/3, Brent crude oil delivered in May closed down 34 US cents to 68.88 USD / barrel. WTI crude oil for April delivery fell 22 cents to $ 65.39 per barrel.
China’s industrial output growth rose rapidly in January and February, exceeding expectations, while the country’s daily refining figures rose 15% from a year ago.
The world’s top oil exporter Saudi Arabia reduced April oil supplies by 15% to at least four North Asian customers, while meeting the usual monthly requirement for Indian refineries.
The Organization of the Petroleum Exporting Countries and Allies (OPEC +) decided to extend most of the supply cuts in April.
The huge US economic stimulus package was passed this month, raising the outlook for global economic growth. Washington is looking at raising taxes with companies, high-income earners and fuel, to pay for an extensive infrastructure plan that could reduce oil demand.
Prices have been pressured by last month’s winter storm prediction in Texas that could further boost crude inventories. However, analysts say a pact curbing top producers’ output and recovery from the vaccine rollout will continue to push crude prices up despite any temporary obstacles. Come on.
Gold rose due to lower bond yields
Gold prices rose as US Treasury yields fell from recent highs and investors waited for clues from a Federal Reserve policy meeting.
Spot gold rose 0.2% to $ 1,729.94 / ounce. US gold delivered in April closed up 0.5% to 1,729.2 USD / ounce.
The big question will be whether rising yields based on optimism about an economic recovery will put pressure on gold or whether a slowdown increase or rising inflation will support the price of gold.
Investors wait for the two-day Fed meeting that begins March 16, with the focus on the recent spike in bond yields, concerns about rising inflation and economic prospects.
Copper, aluminum rose
Copper prices rose in the first session of the week after stronger than expected industrial growth in China, while aluminum spiked as a Chinese city curbed electricity consumption. Trading volume is low, investors are cautious ahead of the Fed and central banks meeting this week.
Copper prices on the London metal trading floor rose 0.4% to $ 9,122.5 / ton leaving the session high at $ 9,199.5 / ton, also the highest level since March 3.
China’s industrial output surged 35.1% in the first two months of the year from a year ago, showing a strong recovery in the world’s second-largest economy in the first quarter.
Price of LME aluminum delivered after 3 months increased 2% to 2,213.5 USD / ton, the highest since March 4, after Baotou city in Inner Mongolia of China required some industrial and electrical factories to close In an effort to meet its energy consumption target for Q1. Aluminum is the most energy sensitive metal.
China’s aluminum production increased by 8.4% in the first two months of 2021 compared to the same period last year, as smelters added new capacity.
Chinese iron ore plummeted
China’s iron ore plunged more than 6% in the first session of the week after Tangshan, the top steel-making city, pledged to cut emissions by 50% during periods of heavy pollution and punish those that do not comply. manufacturing.
Iron ore delivered in May on the Dalian Commodity Exchange sometimes fell about 6.3% to CNY 1,005 ($ 154.55) / ton, the lowest since Feb. 8. The contract ended session fell 3.5% to 1,035 CNY / ton.
Iron ore inventories at Chinese ports rose 1.4 million tons to 130.9 million tons as of March 12 from a week ago, according to SteelHome data.
Other steelmaking components’ prices also fell due to concerns of further production control.
However, steel prices at the Shanghai trading floor closed up as real estate and infrastructure investment in China rose by 38.3% and 36.6%, respectively, in the first two months of the year.
Steel bar in Shanghai increased 0.6% to 4,787 CNY / ton. HR coil increased 1.1% to 5,068 CNY / ton. Stainless steel fell 0.1% to 14,060 CNY / ton.
China’s crude steel production rose 12.9% in the first two months of the year, as mills increased production in anticipation of increased demand from the construction and manufacturing sectors.
Reduced rubber
Japanese rubber prices fell after official data showed that machine orders fell in January, falling for the first time in 4 months, reflecting damage from Covid-19 restrictions in Japan.
Rubber contract for August delivery on Osaka trading floor closed down 3.6 JPY or 1.3% to 272.4 JPY / kg.
Price of rubber delivered in May in Shanghai decreased 1.8% to 15,115 CNY / ton.
Reduced sugar
Raw sugar for May delivery closed down 0.01 cent or 0.1 percent to 16.12 US cents / lb, extending the decline for four consecutive weeks.
The rise of the USD index makes sugar more expensive for investors to buy with other currencies.
Sugar is consolidating after rising in the beginning of the year, despite a failed harvest in Thailand, Indian exports slowing and the status quo about Brazil’s upcoming crop.
White sugar in the same period fell 0.4 USD or 0.1% to 459.1 USD / ton.
Decreased coffee
Arabica coffee delivered in May closed down 0.9 US cent or 0.7% to 1,321 USD / lb, after 2 consecutive weeks of increasing.
The harvest in Brazil is approaching, with some gardens ready to be harvested as early as April. A broker said the coming cold weather could have an impact given the tight coffee market.
Robusta coffee same term fell 15 USD or 1.1% to 1,388 USD / ton.
Corn, wheat, and soybeans all increased
Maize rose 1.9% to its highest level a week, after a US government report showed that export demand remained high. Soybeans and wheat also increased.
The US Department of Agriculture’s weekly report showed that maize exports were 2.204 million tons, up from 1.673 million tons in the previous week.
Maize for May delivery on the Chicago floor closed up 10-1 / 2 US cents to 5.49-1 / 2 USD / bushel.
CBOT wheat rose 6-1 / 2 US cents to 6.45 USD / bushel.
CBOT soybeans for May delivery rose 6-1 / 4 US cents to 14.19-1 / 2 USD / bushel.
Prices of some key items on the morning of March 16
