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Oil Prices Rise
Oil prices increased due to tensions in the Middle East, but a strong US dollar and inflation data tempered expectations that the Federal Reserve will cut interest rates soon.
At the close of trading on April 26, Brent crude oil rose 49 US cents or 0.55% to $89.50 per barrel, and West Texas WTI crude oil rose 28 US cents or 0.34% to $83.85 per barrel.
Supply concerns supported prices as tensions in the Middle East continue.
In the 12 months through March 2024, US inflation rose 2.7% after a 2.5% increase in February 2024. The March 2024 increase was in line with economists’ expectations.
The Fed targets a 2% inflation rate. The US central bank is expected to hold interest rates steady at next week’s policy meeting.
US Natural Gas Prices Fall
US natural gas prices declined ahead of the May 2024 contract expiration, pressured by lower gas deliveries to the Freeport, Texas, liquefied natural gas (LNG) export plant and high gas storage.
The May 2024 natural gas futures contract on the New York Mercantile Exchange fell 2.4 US cents, or 1.5%, to $1.61 per million British thermal units (mmBtu), after falling to its lowest level since March 26, 2024. Overall, natural gas prices fell more than 7% for the week.
Gold Prices Advance
Gold prices rose after data showed US inflation increased as expected, but gold posted a weekly decline as geopolitical risks eased.
Spot gold on LBMA was up 0.3% at $2,338.65 per ounce. However, gold prices had their biggest weekly decline since December 2023, after geopolitical tensions in the Middle East eased. Gold futures for June 2024 on the New York Mercantile Exchange rose 0.2% to $2,347.20 per ounce.
The US Personal Consumption Expenditures (PCE) price index rose 0.3% in March 2024, in line with forecasts, a development unlikely to deter the US Federal Reserve from holding off on interest rate cuts until September 2024.
Meanwhile, US Treasury yields declined after the data release, making gold more attractive.
Copper Prices Hit 2-Year High
Copper prices in London hit a two-year high, surpassing the $10,000 per tonne mark, driven by supply concerns and strong buying interest.
Three-month copper on the London Metal Exchange rose 0.9% to $9,950.50 a tonne, after touching $10,033.50 a tonne, its highest since April 2022.
Iron Ore Posts Third Weekly Gain, Steel Rebar Rises
Iron ore prices on the Dalian Commodity Exchange posted their third consecutive weekly gain, as demand in top consumer China improved, overshadowing elevated port stockpiles.
The most-traded iron ore futures contract for September 2024 on the Dalian exchange rose 0.06% to 884.5 yuan ($122.07) a tonne. Iron ore gained 2% over the week.
Meanwhile, iron ore futures for May 2024 on the Singapore Exchange gained 0.13% to $118.45 a tonne. Iron ore rose 1.7% over the week.
Iron ore inventory at major Chinese ports increased by 1.4% to 147.59 million tonnes in the week to April 26, 2024, the highest since April 2022, according to consultancy Mysteel.
On the Shanghai Futures Exchange, steel rebar rose 0.08%, stainless steel increased 0.63%, hot-rolled coil decreased 0.13%, and wire rod fell 1.28%.
Japanese Rubber Prices Fall for Fourth Straight Week
Japanese rubber futures turned higher, snapping a three-session losing streak, amid higher oil prices and a weaker Japanese yen, but still ended the week lower.
Osaka Exchange (OSE) rubber futures for October 2024 delivery rose 3.3 yen, or 1.09%, to 305.4 yen ($1.96) per kg. But overall, rubber futures lost 1.74% for the week, marking their fourth consecutive weekly decline, the longest losing streak since early August 2023.
Meanwhile, rubber futures for September 2024 delivery on the Shanghai Futures Exchange rose 105 yuan, or 0.75%, to 14,195 yuan ($1,959.39) per tonne.
Rubber futures for May 2024 delivery on Singapore’s SICOM exchange rose 0.82% to 159.8 US cents per kg.
Coffee Prices Decline
London robusta coffee futures for July 2024 delivery fell $153, or 3.6%, to $4,151 a tonne, retreating from a record high of $4,338 a tonne set on April 25, 2024. But overall, coffee prices rose 2% over the week.
Meanwhile, ICE arabica coffee futures for July 2024 delivery fell 1.8% to $2.24 per lb. Coffee prices fell 3.4% over the week.
Cocoa Prices Slip
London cocoa futures for July 2024 delivery fell 269 pounds, or 2.9%, to 8,979 pounds a tonne, down 1,000 pounds a tonne from last week’s high of 9,980 pounds. Cocoa prices lost 9% over the week.
Meanwhile, New York cocoa futures for July 2024 delivery fell 1.9% to $10,594 a tonne. Cocoa prices fell 8% over the week.
Sugar Prices Ease
ICE raw sugar futures for May 2024 delivery fell 0.08 US cent, or 0.4%, to 19.4 US cents per lb. Sugar prices lost 1.7% over the week.
Meanwhile, London white sugar futures for August 2024 delivery were little changed at $563.70 a tonne.
Wheat Prices Hit Over 3-Month High, Corn and Soybeans Fall
US wheat prices rose for a seventh consecutive session due to adverse weather, marking their strongest weekly performance since the start of the Russia-Ukraine conflict.
July 2024 wheat futures rose 1-3/4 cents to $6.22-1/4 a bushel. Earlier in the session, wheat reached $6.33-1/4 a bushel, its highest since January 11, 2024. July 2024 corn futures fell 2 cents to $4.50-1/4 a bushel, and soybeans for the same
