US Crude Oil Prices Decline
US Crude oil prices declined after the Federal Reserve maintained its short-term interest rate cut decision and an increase in US crude oil inventories added pressure to the market.
At the close of trading on February 28, Brent crude oil increased by 3 US cents, or 0.04%, to $83.68 per barrel, while West Texas Intermediate crude oil decreased by 33 US cents, or 0.42%, to $78.54 per barrel. Both oil types fell by $1 per barrel early in the trading session.
The Energy Information Administration (EIA) reported that US crude oil inventories increased by 4.2 million barrels the previous week, exceeding analysts’ expected increase of 2.74 million barrels.
US Natural Gas Prices Increase Over 7%
US Natural Gas prices increased over 7% and recovered from a four-year low in the previous session, supported by colder weather forecasts leading to an increased demand for natural gas for heating purposes.
The April 2024 natural gas prices on the New York Exchange increased by 7.7 US cents, or 7.7%, to $1.885 per mmBTU. In the previous session, natural gas prices decreased to $1.51 per mmBTU, the lowest since June 2020, due to excess supply.
Gold Prices Rise
Gold prices rose as traders shifted focus to important economic data and comments from US Federal Reserve officials regarding the timing of interest rate cuts.
Spot gold on the LBMA exchange increased by 0.1% to $2,031.71 per ounce, while April 2024 gold futures on the New York exchange decreased by 0.1% to $2,042.70 per ounce.
Copper Prices Decrease
Copper prices in London decreased as the US dollar strengthened and negative news from China’s real estate sector, the major consumer of industrial metals, outweighed positive sentiment.
Three-month copper futures on the London exchange decreased by 0.2% to $8,458 per tonne.
Copper inventories in Shanghai doubled over a two-week period to 181,323 tonnes, the highest level since March 2023, indicating a slow recovery in China’s demand since the Lunar New Year holiday.
The US dollar index increased as investors awaited inflation data from the US and Europe. A stronger US dollar made metals more expensive when purchased with other currencies.
Iron Ore and Steel Prices Increase
Iron ore prices on the Dalian exchange increased for the second consecutive session, supported by expectations of recovering demand in China, the top consumer of the commodity. However, concerns about the slowdown in China’s real estate market limited the price increase.
May 2024 iron ore prices on the Dalian exchange increased by 1.08% to 889 CNY ($123.49) per tonne. Meanwhile, March 2024 iron ore prices on the Singapore exchange decreased by 1.29% to $116 per tonne due to concerns about China’s real estate market, the world’s largest consumer of steel and the second-largest economy.
On the Shanghai exchange, rebar steel prices increased by 0.69%, hot-rolled coil steel prices increased by 0.49%, stainless steel prices increased by 0.39%, while steel coil prices decreased by 0.91%.
Rubber Prices Decrease in Japan
Rubber prices in Japan decreased amid declining oil prices and cautious trading ahead of upcoming consumption data from the US. However, concerns about the weather in Thailand, the top rubber-producing country, limited the downward trend.
August 2024 rubber prices on the Osaka exchange decreased by 1.5 JPY, or 0.5%, to 301.1 JPY ($2.0) per kg. Meanwhile, May 2024 rubber prices on the Shanghai exchange increased by 25 CNY to 13,965 CNY ($1,939.8) per tonne, and March 2024 rubber prices on the Singapore exchange decreased by 0.37% to 160.9 US cents/kg.
Coffee Prices Decrease
May 2024 robusta coffee prices on the London exchange decreased by 33 US dollars, or 1.1%, to $3,044 per tonne. Meanwhile, May 2024 arabica coffee prices on the ICE exchange decreased by 0.7% to $1.818 per pound.
Cocoa Prices Decrease Over 6%
Cocoa prices on the ICE exchange decreased by over 6% due to profit-taking activities, even as concerns about reduced supply in West Africa remained.
May 2024 cocoa prices on the London exchange decreased by 363 GBP, or 6.6%, to 5,134 GBP per tonne after reaching a record high of 5,605 GBP per tonne on February 26, 2024. Meanwhile, May 2024 cocoa prices on the New York exchange decreased by 7.1% to $5,994 per tonne.
Sugar Prices Increase
March 2024 raw sugar prices on the ICE exchange increased by 0.17 US cents, or 0.7%, to 24.01 US cents per pound, previously reaching a near three-week high of 24.16 US cents per pound.
Meanwhile, May 2024 white sugar prices on the London exchange increased by 0.5% to $635 per tonne.
The International Sugar Organization (ISO) increased its forecast for global sugar deficit for the 2023/24 crop year to 689,000 tonnes from the previous estimate of 335,000 tonnes.
Soybean and Corn Prices Increase, Wheat Prices Decrease
Soybean prices on the Chicago exchange increased as traders bought for profit after prices hit a three-year low.
On the Chicago exchange, March 2024 soybean prices increased by 2 and 3/4 US cents to $11.34 per bushel after starting the trading session at $11.24 and 3/4 per bushel. May 2024 soybean prices increased by 4 and 1/2 US cents to $11.45 and 1/4 per bushel. May 2024 corn prices increased by 5 US cents to $4.28 and 1/2 per bushel – the highest since February 14, 2024. May 2024 wheat prices decreased by 9 and 1/2 US cents to $5.74 and 3/4 per bushel.
Palm Oil Prices End Three Consecutive Rising Sessions
Palm oil prices in Malaysia decreased and ended its three consecutive rising sessions as palm oil prices on the Chicago exchange decreased and export data weakened.
May 2024 palm oil prices on the Bursa Malaysia exchange decreased by 0.38% to 3,907 ringgit ($819.59) per tonne.
