Oil price increased by more than 2 USD/barrel
Oil prices rose more than $2 a barrel, after OPEC and the International Energy Agency (IEA) forecast oil demand would rebound next year and the United States would ease its expected interest rate hikes along with slowing inflation.
Closing the session on December 14, Brent crude oil gained 2.02 USD, or 2.4%, to 82.7 USD/barrel and West Texas Intermediate crude oil increased 1.94 USD to 77.28 USD/barrel. Both grades rose on strong diesel prices ahead of expected cold weather later in the year.
OPEC expects oil demand next year to grow by 2.25 million bpd (bpd) to 101.8 million bpd, with potential increases from China, the world’s top importer.
At the same time, the IEA expects China’s oil demand to rebound next year after falling by 400,000 bpd in 2022, and raised its 2023 oil demand growth estimate of 1.7 million bpd to 101.6 million bpd.
Natural gas prices down 7%
Natural gas prices in the US fell 7%, as the weather forecast for the end of December 2022 was less cold than previously expected.
The price of natural gas in January 2023 on the New York Stock Exchange fell 50.5 US cents, or 7.3%, to 6,430 USD/mmBTU.
Gold price drops
Gold prices fell, as the US Federal Reserve said interest rates will continue to rise next year and it is too early to consider a rate cut.
Spot gold on the LBMA fell 0.1% to $1,808.09 an ounce, after plummeting 0.8% following the Fed’s announcement of an expected 0.5% rate hike and expected costs Borrowing will increase by at least 75 basis points by the end of 2023. Gold for February 2023 on the New York Stock Exchange fell 0.4 percent to $1,818.7 an ounce.
Aluminum prices fall
Prices of aluminum and other industrial metals both fell, as fears of Covid-19 cases in top metal consuming country China rose, after the country eased strict controls.
Three-month aluminum futures on the London Exchange fell 0.4% to $2,452.5 a tonne, after gaining 2% in the previous session.
Iron ore and steel prices rise
China’s iron ore and steel prices rose on optimism that rising Covid-19 cases would prompt more stimulus measures to bolster the world’s second-largest economy.
Iron ore futures for May 2023 on the Dalian Stock Exchange rose 1.3% to 808.5 CNY ($116.19)/ton.
Meanwhile, the price of iron ore for January 2023 on the Singapore floor fell 0.2% to 108.65 USD/ton.
On the Shanghai bourse, the price of rebar increased 1.4% to CNY 3,986/ton, hot rolled coil increased 1.1%, coil increased 2.3% and stainless steel increased 0.6%.
Rubber prices in Japan increase
Rubber prices in Japan increased, following the trend of rubber prices in the Shanghai market increasing, as the prospect of supportive policy in China and lower-than-expected inflation data in the US supported the market.
The price of rubber for May 2023 on the Osaka floor increased by 2.8 JPY, or 1.2%, to 231.8 JPY (1.71 USD)/kg, after reaching the highest level since October 11 / 2020. 2022 in the beginning of the trading session.
At the same time, the price of rubber in January 2023 on the Shanghai floor increased by 220 CNY to 13,140 CNY (1,888 USD)/ton.
The price of rubber in January 2023 on the Singapore floor increased by 1.3% to 138.8 US cents/kg.
Coffee prices increase
The price of arabica coffee for March 2023 on the ICE floor increased by 0.25 US cents, or 0.1%, to $ 1.6815 / lb – the highest in 2 weeks.
At the same time, the price of Robusta coffee in March 2023 on the London floor increased by 5 USD, or 0.3%, to 1,877 USD/ton.
The highest price of raw sugar in a month
Crude sugar prices on the ICE exchange rose more than 2% to a 1-month high after oil prices rose, amid tight short-term supply.
The price of raw sugar for March contract on ICE rose 0.53 US cents, or 2.7%, to 20.29 US cents/lb, after hitting a 1-month high (20.41 US cents/lb) at the beginning of the session.
At the same time, the price of white sugar in March 2023 on the London floor increased by 14.5 USD, or 2.7%, to 554.8 USD/ton.
Corn and wheat prices fall, soybeans rise
Corn and wheat prices on the Chicago Mercantile Exchange fell, after hitting an 11-day high in the previous session.
On the Chicago Mercantile Exchange, soybean futures in January 2023 increased 2-1/2 US cents to 14.82-1/4 USD/bushel. The price of corn for March term fell 3 US cents to 6.5-1/2 USD/bushel and the price of red soft wheat, the winter crop for March 2023 fell 1-1/2 US cents to 7.49 -1/4 USD/bushel. The price of hard red wheat, winter crop for March 2023, fell 15 US cents to 8.5-1/4 USD/bushel.
Soybean prices rose, as investors expect export demand for US supplies to remain strong, until Brazil begins a new harvest.
At the same time, analysts say drought in Argentina remains a risk to international corn and soybean supplies, with heavy rains last weekend likely to be capped by a hot week.
Prices of some key items in the morning of December 15:
Source: CafeF
Source: Vietnam Insider