Oil Prices Climb
Oil prices rose amid concerns over supply disruptions in the Middle East and comments from the US Treasury Secretary on the economy performing better than expected.
Brent crude settled at $89.01 a barrel, up 99 cents, or 1.1%, on Monday. West Texas Intermediate (WTI) crude settled at $83.57 a barrel, a gain of 76 cents, or 0.9%.
US Treasury Secretary Janet Yellen said the country’s economic growth was stronger than anticipated because quarterly figures were lower than predicted.
Additionally, oil prices were supported by a surprise large decline in US crude stockpiles last week and an increase in exports, the EIA said.
Concerns about rising fuel demand in the US grew as measures of American business activity in April 2024 fell, employment data came in stronger than expected, and inflation remained elevated, suggesting the Fed is likely to delay any expected interest rate cuts.
US Natural Gas Prices Fall
US natural gas prices fell, extending a one-month low, pressured by government data showing that stockpiles last week were higher than expected.
New York-traded gas futures for May 2024 fell 1.5 cents, or 0.9%, to $1.64 per million British thermal units (mmBtu).
Gold Prices Advance
Gold prices rose as the US dollar weakened, even as Treasury yields increased after economic data signaled persistent inflation, diminishing expectations for the Federal Reserve to cut interest rates anytime soon.
Spot gold on the LBMA was up 0.8% to $2,333.79 per ounce. However, gold has lost nearly $100 an ounce since touching a record high of $2,431.29 on April 12, 2024. June 2024 gold futures on the New York exchange rose 0.2% to $2,342.5 per ounce.
The US dollar declined after data showed US economic growth slowed more than expected in the first quarter of 2024, but inflation data suggested the Fed was unlikely to cut rates before September 2024.
Copper Prices Extend Gains
Copper prices climbed on strong buying and a weaker US dollar.
Three-month copper on the London Metal Exchange (LME) rose 1% to $9,869 a tonne, moving closer to its two-year peak of $9,988 a tonne hit on April 22, 2024.
Copper prices have surged 11% so far this month and 15% this year.
Prices were supported by a weaker US dollar, which makes dollar-priced commodities appear cheaper to holders of other currencies.
Analysts at Goldman Sachs forecast a global refined copper market deficit of 428,000 tonnes in 2024 and predict London copper will reach $12,000 a tonne in the next 12 months.
Iron Ore and Steel Prices Climb
Iron ore prices on the Dalian Commodity Exchange rose for a second straight session, supported by expectations of demand recovery in top consumer China, although profit-taking capped gains.
The most-traded September 2024 iron ore contract on the Dalian exchange rose 1.03% to 879.5 yuan ($121.36) a tonne, after rising more than 3% in the previous session.
On the Singapore Exchange, however, the benchmark May 2024 iron ore contract dipped 0.36% to $117.5 a tonne. Iron ore futures had surged more than 5% in the prior session.
On the Shanghai Futures Exchange, steel rebar rose 0.03%, hot-rolled coil increased 0.08%, wire rod climbed 0.26%, and stainless steel rose 1.16%.
Japan Rubber Prices Fall for Third Straight Day
Japanese rubber prices fell for a third consecutive day to a seven-week low, tracking a decline in Shanghai rubber on the back of weak demand outlook and reduced tire output in China ahead of a long holiday.
Osaka Exchange (OSE) rubber futures for October 2024 delivery fell 3.4 yen, or 1.11%, to 302.1 yen ($1.94) per kg, the lowest since March 8, 2024.
Meanwhile, the most-active May 2024 rubber contract on the Shanghai Futures Exchange dropped 170 yuan to 14,045 yuan ($1,938.07) a tonne.
China-based Beite Futures said some tire makers cut production in anticipation of the upcoming Labor Day holiday.
Business activity in the US fell to a four-month low in April 2024 as demand softened.
Singapore Exchange rubber futures for May 2024 delivery declined 1% to 158.8 US cents per kg.
Coffee Prices Gain Across Vietnam, Indonesia, London, and New York
Coffee prices in Vietnam topped $1,000 a tonne for the first time as concerns mounted over next season’s supplies due to water shortages, while Indonesia is set to start harvesting in June 2024.
Vietnam’s grade 2 robusta coffee beans were offered at a premium of $1,105-$1,110 per tonne over the July 2024 London futures contract, while domestic robusta beans were sold at 128,200-129,500 dong ($5.06-$5.11) per kg, up from 105,000-105,900 dong a week earlier.
In Indonesia, the grade 4 robusta beans were offered at a premium of $600 a tonne to the May 2024 London futures, compared with $550 a week earlier.
In New York, arabica coffee futures for July 2024 delivery rose 1% to 228.10 cents per lb.
In London, robusta coffee futures for July 2024 delivery climbed $38, or 0.9%, to $4,304 a tonne, near a contract high of $4,338 hit earlier in the session.
Sugar Prices Slide
Raw sugar futures for May 2024 on ICE fell 0.52 cents, or 2.6%, to 19.48 cents per lb.
White sugar futures for August 2024 on the London market declined 2.3% to $563.6 a tonne.
Wheat and Corn Gain, Soybeans Fall
US wheat prices rose for a second straight session on concerns over persistent dry weather in major exporter Russia.
Chicago Board of Trade (CBOT) wheat futures for July 2024 delivery gained 7-1/2 cents to $6.21-1/2 a bushel, after touching their highest since January 26, 2024, of $6.23-1/2. July corn futures added 3-1/2 cents to $4.52 a bushel, while soybeans for the same month fell 1-3/4 cents to $11.79-3/4 a bushel.
Indian Rice Prices Lowest in 3 Months, Steady in Vietnam and Thailand
Export prices of rice from top exporter India fell to their lowest in more than three months on weaker demand and ample supplies, while Thai rice prices were largely unchanged.
In top exporter India, 5% broken parboiled rice was quoted at $528-$536 per tonne, against $538-$546 last week, and had hit a record high of $560 a tonne the previous month.
New Delhi imposed a 20% export tax on non-basmati rice in August 2023 to help control domestic prices.
Vietnam’s 5% broken rice was offered at $575-$580 per tonne, unchanged from last week.
In Thailand, 5% broken rice prices were at $580-$585 per tonne, the same as $585 a tonne last week.
Palm Oil Prices at 2-Month Low
Malaysian palm oil prices fell to a two-month low as other vegetable oil prices retreated and output in major palm oil producing countries was expected to rise.
The benchmark May 2024 palm oil contract on the Bursa Malaysia Derivatives Exchange fell 68 ringgit, or 1.73%, to 3,874 ringgit ($811.48) a tonne, its lowest since Feb. 27, 2024.
Key Commodity Prices as of April 26, 2024
