Picture for illustrative purposes.
Oil prices dip
Oil prices fell as traders switched their focus to the market’s fundamentals, with concerns about near-term demand and a potential Middle East conflict weighing on supply.
At the close of trading on April 22, Brent crude fell 29 US cents, or 0.33%, to $87 per barrel, and West Texas Intermediate (WTI) crude fell 29 US cents, or 0.35%, to $82.85 per barrel.
The supply-demand balance will tighten in the coming months, according to Phil Flynn of Price Futures Group.
US natural gas prices jump over 2%
U.S. natural gas prices jumped over 2% as increased flows to liquefied natural gas (LNG) export plants and reduced output overshadowed forecasts for lower demand next week and a mild weather outlook.
The May 2024 contract for natural gas on the New York Mercantile Exchange rose by 3.9 US cents, or 2.2%, to $1.791 per million British thermal units (mmBtu).
Gold hits one-week low, silver slides
Gold prices dropped over 2% to a one-week low as concerns eased over the conflict in the Middle East, prompting investors to reduce their haven bets and shift towards riskier assets such as stocks.
Spot gold on the LBMA fell 2.5% to $2,330.51 per ounce, and the June 2024 gold futures contract on the New York Mercantile Exchange decreased by 2.8% to $2,346.4 per ounce.
The combination of geopolitical tensions and aggressive buying by central banks had lifted gold to a record high of $2,431.29 per ounce on April 12, 2024.
Traders now await Friday’s release of the U.S. personal consumption expenditures (PCE) report for clues on the Federal Reserve’s interest rate hike path.
Spot silver fell by 5% to $27.22 per ounce, its biggest one-day decline in over three years.
Tin hits 22-month high
Tin prices rose to their highest in 22 months as the market fretted over supply concerns from Indonesia and falling inventories in London.
The London Metal Exchange’s tin contract ended down 3.5% at $34,365 a tonne, after reaching $36,050 a tonne earlier in the session – its highest since June 2022.
Worries about exports from Indonesia – the source of 18% of the world’s mined tin – and disruptions in Myanmar, the world’s second-largest tin-mining country, have fuelled the rally in tin prices.
Tin stocks in London have fallen by nearly 50% to 4,190 tonnes since December 2023, reaching their lowest since July 2023, indicating a supply deficit.
Iron ore and steel prices dip
Iron ore futures on the Dalian Commodity Exchange fell, pressured by fading expectations of stimulus measures in top consumer China, elevated port inventories, and risks of government intervention after last week’s rally.
The most-traded September 2024 iron ore contract on the Dalian exchange ended down 0.06% at 866.5 yuan ($119.63) a tonne, after rising more than 5% last week.
Meanwhile, on the Singapore Exchange, the most active May 2024 contract for iron ore was down 0.34% at $116.05 a tonne.
Iron ore inventories at major Chinese ports increased by 0.5% from the previous week to 145.59 million tonnes in the week to April 19, 2024, consultancy Mysteel said.
On the Shanghai Futures Exchange, steel rebar fell 0.22%, hot-rolled coil decreased by 0.65%, wire rod slipped 0.83%, and stainless steel dropped by 0.21%.
Japan rubber extends gains for a second day
Japanese rubber prices advanced for a second straight session, lifted by tight supplies, a rally in domestic stock markets, and ongoing weakness in the yen.
The Osaka Exchange (OSE) rubber contract for September 2024 delivery rose by 6.2 yen, or 1.99%, to 317 yen ($2.05) per kg – the highest since April 12, 2024.
In contrast, the most-active September 2024 rubber contract on the Shanghai Futures Exchange dropped by 160 yuan to 14,415 yuan ($1,990.31) per tonne.
The May 2024 rubber contract on the Singapore Exchange declined by 0.56% to 160.9 US cents per kg.
Mixed coffee
London robusta coffee futures for July delivery rose $53, or 1.3%, to $4,133 per tonne, after hitting a record high of $4,292 per tonne last week.
Meanwhile, arabica coffee futures for July delivery on the ICE exchange dropped by 1.8% to $2.2765 per lb.
Sugar prices gain
Raw sugar futures for May delivery on the ICE exchange gained 0.07 US cent, or 0.4%, to 19.8 US cents per lb.
Meanwhile, white sugar futures for August delivery on the London exchange rose by 1.2% to $570.4 per tonne.
Wheat tops two-month high, corn and soybeans rise
U.S. wheat futures rose to their highest in more than two months as concerns about crop-damaging weather in the Northern Hemisphere and short-covering provided support.
On the Chicago Board of Trade, the July 2024 wheat contract rose by 20-3/4 cents to $5.87-1/2 a bushel, after earlier reaching its highest since February 14, 2024. The July corn contract gained 6-3/4 cents to $4.49-3/4 a bushel, while soybeans for the same delivery month added 10-3/4 cents to $11.76-1/2 a bushel.
Palm oil snaps six-session losing streak
Malaysian palm oil futures rose, snapping a six-session losing streak, tracking gains in soybean oil prices, but expectations of higher palm oil production,
