World oil prices slip
Oil prices slipped on Friday, pressured by renewed concerns that a global trade war could dent energy demand, although impending US sanctions on Iran and falling Venezuelan output limited the decline.
Benchmark Brent crude oil LCOc1 fell 35 cents to settle at $77.42 a barrel. US crude CLc1 slipped 45 cents to settle at $69.80.
Brent closed the month 4.3 percent higher while US crude gained 1.5 percent. Oil has been buoyed by tumbling Venezuelan output and declining shipments from Iran ahead of the imposition of US sanctions on Tehran in November.
US crude production in June hit 10.674 million barrels per day, the highest monthly total on record, the Energy Information Administration (EIA) said in a monthly report on Friday.
Crude exports rose nearly 200,000 bpd in the month, hitting a new record of 2.2 million bpd, more than twice last June’s level, the EIA said in a separate monthly report on Friday.
Spot gold up while December contract drops
Spot gold climbed on Wednesday as the US dollar turned negative, but expectations for higher US interest rates limited gains and kept the December gold contract pressured.
Spot gold gained 0.4 percent at $1,205.20 per ounce by 2:09 p.m. EDT (1809 GMT). Prices hit their highest level since Aug. 10 at $1,214.28 on Tuesday, but closed 0.8 percent lower, as US Treasury yields rose after the United States and Mexico struck a trade deal. However, US gold futures for December delivery settled down $2.90, or 0.2 percent, at $1,211.50 per ounce, pressured by strong global stocks and after the US dollar index came off its daily lows, said George Gero, managing director of RBC Wealth Management.
Worries over Chinese demand weigh on copper prices
Copper prices eased on Wednesday due to worries about demand in top consumer China after a state planning official said there were increasing risks to growth in the second half of the year.
Benchmark copper on the London Metal Exchange ended down one percent at $6,086 a tonne. It touched a two-week high of $6,167 a tonne on Tuesday. The head of China’s National Development and Reform Commission said the government needed to step up efforts to achieve key development goals. Amid an escalating trade dispute with Washington, China’s economy showed signs of further cooling last month with investment growth at a record low and consumers turning more cautious about spending.
Palm oil in European market rangebound
Palm oil on the European vegetable oils market was offered in a tight range on Wednesday, mostly tracking easier Malaysian palm oil futures. Asking prices for palm oil were between $2.50 a tonne up and $2.50 down from Tuesday after Malaysian palm oil futures were down by between 10 and 19 ringgit a tonne.
CBOT soyoil futures were between 0.08 and 0.12 cents per lb lower at 1630 GMT on technical selling as CBOT traders bought soymeal futures and sold soyoil contracts. EU rapeoil was mostly quoted between 1 euro and 8 euros a tonne down on the weaker trend in Chicago soyoil and because of a weak dollar, which weighs on euro-priced products. Technical selling also pressured prices. Lauric oils were offered between $5 a tonne higher and $10 lower, tracking the easier trend in palm oil futures and because of lack of buying interest.
EU wheat rallies on talk of Russian export cap
European wheat prices rallied on Wednesday after US markets surged on talk that Russia was considering putting a cap on wheat exports, although this was not officially confirmed.
Benchmark December milling wheat on Paris-based Euronext, settled 5.00 euros or 2.5 percent higher at 203.25 euros a tonne. It had risen up to 204.50 euros in earlier trade. Traders estimated that at the current rate of sales Russia would reach 25 million tonnes of wheat exports in December.
White sugar at one-month high
White sugar futures on ICE rose to a one-month peak on Wednesday, while the October premium over raws surged to a new high, as the prospect of lower European production curbed appetites to deliver against the spot contract.
October white sugar settled up $4.40, or 1.4 percent, at $321.60 per tonne, after climbing to a one-month high of $329.60. This lifted the October white sugar premium over October raw sugar to around $93, the highest for the contract. Weather-related problems with the European Union crop this year has helped tighten available supplies that could be tendered against the October contract, which expires on Sept. 14.
Arabica coffee, sugar extend gains on Brazilian currency bounce
Arabica coffee and raw sugar on ICE Futures US rose on Monday, supported by a strengthening of top grower Brazil’s currency and after short covering inspired by data showing speculators took record bearish stances. December arabica coffee settled up 1.05 cent, or 1 percent, at $1.0575 per lb. Data released after the market closed on Friday showed speculators increased their net short position in arabica futures and options to a record 106,105 contracts, surprising traders and spurring short-covering on Monday, traders said. Speculators’ record net short position accounted for a hefty 35 percent of futures open interest on Aug. 21. Also supportive of prices was the Brazilian real’s rebound above Friday’s 2-1/2-year low against the US dollar, which discouraged producers in the country from selling, traders said.
Shanghai rebar falls for fourth day, output curbs in focus
Prices for rebar construction steel in China extended losses into a fourth session on Monday, with the market waiting to see if output curbs due to end soon could be prolonged as the government continues to battle pollution. Benchmark Shanghai rebar prices fell 2.1 percent to 4,204 yuan ($611.58) a tonne when market closed at GMT 0700. A rally in Chinese steel prices over the last two weeks has partly been driven by expectations that production restrictions due to expire on Friday in the top steelmaking city of Tangshan in Hebei province could be extended. The local government has not made any official comment on the issue. Weekly utilisation rates were at 66.44 percent last week, according to data from Mysteel consultancy.
Shanghai zinc prices climb for 6th day
Shanghai base metal prices rose on Monday, with zinc climbing for a sixth day and hitting a two-week high as inventories in China languish at their lowest in a decade.
Zinc stocks in warehouses monitored by the Shanghai Futures Exchange fell 11.8 percent last week to 30,800 tonnes, their lowest since October 2007. Meanwhile, zinc inventories in warehouses approved by the London Metal Exchange have dropped for eight straight days. ShFE zinc has lost 15 percent year-to-date, weighed down by concerns over global oversupply and fears the US-China trade row will hurt demand for industrial metals.