Prices of all commodities simultaneously increased sharply in the session of March 17 due to the news that Russia-Ukraine negotiations had not yet produced any results and expected that China would increase economic stimulus to mitigate the impact of the pandemic. .
Oil up nearly 9% on supply concerns
Oil prices rose on March 17 due to concerns about oil supply shortages in the coming weeks due to sanctions on Russia.
Ending the session on March 17, the price of Brent crude oil increased by $8.62, or 8.79%, to $106.64 per barrel, the largest percentage increase since mid-2020. West Texas Intermediate (WTI) also increased by 7.94 USD, or 8.35%, to 102.98 USD/barrel, after at one point increased by more than 9% to above 104 USD/barrel, ending the previous 3 consecutive losing sessions. there.
The International Energy Agency (IEA) said that 3 million barrels per day (bpd) of Russian oil and products could be lost from next month to major oil companies, traders and companies. Sea shipping away from Russia. According to the IEA, that reduction is much larger than the drop in demand – expected to be 1 million bpd (due to rising fuel prices).
However, Russian Deputy Prime Minister Alexander Novak said energy supplies from Russia would remain stable despite what he described as a tense geopolitical situation, Interfax news agency reported.
U.S. crude inventories unexpectedly rose by 4.3 million barrels last week, contrary to analyst expectations for a 1.4 million-barrel drop.
Gold bounces on USD weakness
Gold prices rose 1% in the past session as the dollar and US Treasury yields weakened, as investors cautiously watched developments in peace talks between Russia and Ukraine.
Spot gold ended up 0.8 percent higher at $1,943.30 an ounce; April gold futures rose 1.8% to $1,943.20 an ounce.
Miguel Perez-Santalla, head of sales and marketing at Heraeus Metals Management in New York, said that with the dollar weakening and the Ukraine situation still complicated, people have started pouring in gold. .
The Dollar index – which compares the USD against a basket of major partner currencies – was down 0.5% as of the end of March 17 Vietnam time, to 97.980, its lowest level in a week.
Aluminum rises on hopes of China intensifying economic stimulus
Aluminum prices rose due to market expectations of economic stimulus policies in China – the world’s leading consumer country.
Three-month aluminum futures on the LME rose 3.8% to $3,381 a tonne. The metal has appreciated significantly since the standoff between Ukraine and Russia, February 24, as Russia produces 6% of the global supply.
“There are clear signs that China is decelerating and that is likely to affect overall demand,” said WisdomTree analyst Nitesh Shah.
However, demand for both aluminum and copper is likely to be boosted as the energy transition comes into focus, particularly in Europe.
Copper price this session also increased 2.3% to 10,280 USD/ton.
Wheat and corn increase
Wheat prices recovered after falling, corn also increased due to high export demand
U.S. wheat futures prices rose as traders continued to grapple with supply disruptions caused by the Russia-Ukraine conflict.
Markets are keeping a close eye on negotiations to end the war in Ukraine, but the Kremlin says there is no deal yet.
France’s Strategie Grains said the war could remove around 11 million tonnes of wheat exports in the Black Sea and about 12 million tonnes of corn exports from world markets in 2021/22.
Session 17/3, the price of wheat for May futures rose 28-3/4 cents to 10.98 USD/bushel; corn for the same term increased 24-1/2 cents to 7.54-1/2 USD/bushel, while soybeans increased 19-1/4 cents to 16.68-1/2 USD/bushel.
Another factor supporting twang prices is the US Centers for Disease Control and Prevention’s updated forecasts of a drought that will extend across much of the Delta through June, threatening the outlook for winter wheat production.
Sugar prices increase
Raw sugar prices on the ICE exchange rose after oil prices rose on concerns about possible supply shortages due to sanctions on Russia. Rising energy prices have always tended to prompt sugar mills in Brazil’s top producer to switch processing sugarcane from sugar to ethanol, a biofuel based on sugar cane feedstock.
Accordingly, the price of raw sugar increased 0.13 cents, or 0.7%, to 18.69 cents/lb.
The price of white sugar delivered in May also increased by 3.40 USD or 0.7% to 526.00 USD/ton.
Rubber rose
Rubber prices in the Japanese market continued to rise as the yen weakened and global stocks strengthened while the conflict in Ukraine continued, although prices in Shanghai fell.
The August rubber contract on the Osaka floor ended the session up 0.5 yen, or 0.2%, to 245.2 yen ($2.06)/kg.
The dollar traded at 118.73 yen, up from 118.19 yen the previous session in Asia. A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
The August rubber contract on the Osaka floor ended the session up 0.5 yen, or 0.2%, to 245.2 yen ($2.06)/kg.
The dollar traded at 118.73 yen, up from 118.19 yen the previous session in Asia. A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
Rubber contracts for May delivery on the Shanghai futures exchange fell 15 yuan to 13,290 yuan (US$2,093.54) per ton.
Iron and steel recover
Iron ore prices in China rose for a second session in a row on expectations that the Government would add economic stimulus programs to offset the negative impact from the pandemic.
The most-traded iron ore contract, for May delivery, on China’s Dalian Commodity Exchange ended in daytime trading up 4.7% to 810 yuan ($127.61)/ tons, after a 5.9 percent gain in the session.
Rebar prices on the Shanghai Futures Exchange rose 1.7%, while hot rolled coil rose 1.3%, but stainless steel fell 1.5% as nickel prices cooled.
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