Price oil reduced
The price of oil has dropped due to US inflation numbers showing the world’s largest economy is weakening, which could reduce crude oil demand along with the increase in OPEC oil production, thereby exerting downward pressure on prices.
At the close of trading on February 29, Brent crude oil for April 2024 delivery fell by 6 US cents to $83.62 per barrel and West Texas Intermediate crude oil fell by 28 US cents to $78.26 per barrel.
The US Personal Consumption Expenditures (PCE) Index – the preferred measure of inflation by the US Federal Reserve – showed that inflation in January 2024 matched economists’ expectations, keeping the possibility of an interest rate cut in June 2024 under consideration.
In addition, oil prices have been under pressure from increased US crude oil inventories, which have risen for the fifth consecutive week, with an increase of 4.2 million barrels, higher than the expected increase of 2.7 million barrels.
US natural gas prices down for the fourth consecutive month
US natural gas prices fell and have declined for the fourth consecutive month due to abundant supply.
Natural gas prices for April 2024 delivery on the New York exchange fell by 2.5 US cents, equivalent to 1.4%, to $1.86/mmBTU. In the previous session, natural gas prices rose 7%, recovering from the lowest level since June 2020 at the beginning of the week.
Overall for the month, natural gas prices have fallen by over 10% – marking the fourth consecutive month of decline and the longest losing streak since March 2020, affected by the mild winter, which led to higher-than-normal inventories and near record-high production levels, despite the freezing in the Arctic in January 2024 reducing short-term production and pushing gas demand to record levels.
Gold at one-month high
Gold prices rose to a one-month high as the USD weakened following US inflation numbers that met expectations. Traders have shifted their focus to comments from officials of the US Federal Reserve regarding signals of an interest rate cut.
Spot gold on the LBMA exchange rose by 0.6% to $2,046.29/ounce and April 2024 gold futures on the New York exchange rose by 0.6% to $2,054.7/ounce.
Data showed that the US Personal Consumption Expenditures Index in January 2024 increased by 0.3%, while the core PCE price index increased by 0.4%, putting upward pressure on the USD, making gold cheaper for investors holding other currencies.
Nickel at highest level in over 2 months
Nickel prices reached the highest level in over 2 months due to concerns over supply from Indonesia, a leading producer.
LME three-month nickel prices rose by 1.3% to $17,830/tonne, at one point reaching $17,935/tonne – the highest since November 9, 2023. Overall for the month, nickel prices have increased by 10% and have had their first monthly gain since July 2023.
Iron ore prices on the Singapore and US exchanges fell, steel beam prices rose
Iron ore prices on the Singapore exchange fluctuated within a narrow range, with investors re-evaluating short-term demand prospects in the leading consumer country – China, amid expectations of increased steel production despite concerns about the real estate sector.
May 2024 iron ore futures on the Singapore exchange fell by 0.17% to $892 CNY ($124)/tonne.
Meanwhile, March 2024 iron ore prices on the Singapore exchange rose by 0.46% to $116.55/tonne.
On the Shanghai exchange, steel beam prices fell by 0.66%, hot-rolled coil steel prices decreased by 0.38%, cold-rolled coil steel prices increased by 0.3% and stainless steel prices remained unchanged.
Natural rubber prices in Japan continue to fall
Rubber prices in Japan fell for the second consecutive session, amid a decline in the domestic stock market, lower oil prices, and a strong JPY, although rubber prices had a monthly increase.
August 2024 rubber futures on the Osaka exchange fell by 4.1 JPY, equivalent to 1.36%, to JPY 297 ($1.98)/kg – the lowest since February 22, 2024. Overall for the month, rubber prices have increased by 4.21% – marking the second consecutive monthly gain.
Meanwhile, May 2024 rubber futures on the Shanghai exchange rose by 10 JPY to JPY 13,960 ($1,940.69)/tonne, amid optimism about China’s upcoming stimulus package.
March 2024 rubber futures on the Singapore exchange fell by 1.18% to 159.2 US cents/kg.
Coffee prices rise in Vietnam, Indonesia, London, and New York
Coffee prices in major Asian robusta coffee-producing countries including Vietnam and Indonesia rose due to continued high demand and limited supply.
Vietnam’s export prices for robusta coffee (type 2, 5% black and broken) were offered at a premium of $400-450/tonne compared to the April 2024 futures contract on the London exchange and compared to a premium of $300-350/tonne a week ago. In the domestic market, dried coffee beans were sold for 82,700-83,700 VND ($3.36-3.4)/kg, higher than 81,600-82,500 VND/kg a week ago.
Vietnam exported 398,000 tonnes of coffee in the first 2 months of 2024, up 16.2% compared to the same period last year. Coffee export turnover increased by 67.5% compared to the same period last year to $1.25 billion.
In Indonesia, premium prices for robusta coffee type 4 (80 defects) were offered at a premium of $800/tonne compared to the April 2024 futures contract on the London exchange, higher than a premium of $720/tonne a week ago.
In London, robusta coffee prices for May 2024 rose by $51, equivalent to 1.7%, to $3,095/tonne.
In New York, arabica coffee prices for May 2024 rose by 1.4% to $1.8435/lb.
Sugar prices drop
March 2024 raw sugar prices on the ICE exchange fell by 1.43 US cents, equivalent to 6%, to 22.58 US cents/lb.
Meanwhile, May 2024 refined sugar prices on the London exchange fell by 3.1% to 615.1 USD/tonne.
Lowest soybean prices in 3 years, corn and wheat prices rise
Soybean prices on the Chicago exchange reached their lowest level in 3 years, under downward pressure due to improved weather conditions in South America and reduced US export sales.
On the Chicago exchange, soybean futures for May 2024 delivery fell by 4-1/2 US cents to $11.75/…
