World oil climbs on upcoming us-china talks
Oil rose nearly 2 percent on Friday after proposed trade talks between the United States and China eased some fears about a global economic slowdown, but gains were capped after the United States reported a sharp build in refined product inventories.
Brent crude LCOc1 futures rose $1.11, a 1.98 percent gain, to settle at $57.06 a barrel. US West Texas Intermediate (WTI) crude CLc1 futures increased 87 cents to settle at $47.96 a barrel, a 1.85 percent gain.
After both benchmarks fell sharply last year, prices posted solid gains in the first week of 2019, despite recent data that added to concerns about a slowing global economy.
Brent increased about 9.3 percent for the week, while WTI rose about 5.8 percent.
Gold falls, palladium prices climbs
Gold fell on Friday, pulling back from a more than six-month peak hit earlier in the session, as robust US jobs data eased some concerns about an ailing economy, while palladium prices punched through the key $1,300 level for the first time.
Spot gold slipped 0.8 percent to $1,283.86 per ounce in the New York close on Friday, after dropping to $1,276.40.
The metal was however on track for a third straight weekly gain, up about 0.2 percent so far, mainly helped by recent strong gains. It touched its highest level since mid-June at $1,298.42 earlier in the day.
US gold futures settled down 0.7 percent at $1,285.80 per ounce, having briefly surpassed the psychological $1,300 per ounce level earlier in the session.
Elsewhere, palladium prices rose nearly 2 percent to $1,288.49 per ounce, having hit a record high of $1,310 earlier.
Data showed US employers hired the most workers in 10 months in December, suggesting a sustained strength in the economy that could soothe concerns of sharp slowdown in growth.
Platinum also jumped 2.8 percent to $820.30, after touching $823.50 an ounce, its highest price since Nov. 29. Silver eased 0.4 percent to $15.68 per ounce, having earlier hit $15.87, it highest level since mid-July.
China steel futures dip on global growth concerns
Shanghai steel futures turned lower on the first day of trading for 2019 on Wednesday after disappointing data from China stoked investor worries about global economic growth.
Prices of steelmaking raw materials also ended the session weaker, with iron ore snapping a run of three positive sessions and coking coal hitting its lowest in more than four weeks. China’s factory activity contracted for the first time in 19 months in December as domestic and export orders continued to weaken, a private survey showed on Wednesday, broadly tracking an official survey released on Monday. The most-active rebar contract on the Shanghai Futures Exchange closed down 0.5 percent at 3,382 yuan ($493.44) a tonne. Hot rolled coil dropped 1.5 percent to 3,294 yuan.
EU wheat firms with chicago in thin post-holiday trade
European wheat futures rose on Wednesday, supported by higher prices in Chicago and a sharp fall in the euro, but low volumes after the New Year holiday subdued the market.
March milling wheat on the Paris-based Euronext exchange settled up 0.75 euros, or 0.4 percent, at 204.00 euros ($231.52) a tonne. Euronext closed early on Monday ahead of the New Year holiday and trading was slow to resume, with many market participants not expected to return until next week. Chicago wheat rebounded after slipping to its lowest in over a month on Monday. Meanwhile, the euro dropped around 1 percent against the dollar after disappointing euro zone data, making grain priced in the currency cheaper overseas.
Global dairy prices rise again at auction
Global dairy prices rose at the first auction of the year on Wednesday, continuing a recovery after falling throughout most of last year. The GDT Price Index climbed 2.8 percent, with an average selling price of $2,986 per tonne, in the twice monthly auction held by GDT Events. The index rose 1.7 pct at the previous sale and has now gained for three consecutive auctions, after declining for months as higher-than-expected supply in New Zealand, the world’s biggest dairy exporter, dampened prices.
Copper loses more ground in Asian trade
Copper slide for a second session on Wednesday as the market kicked off 2019 trading amid concerns over growth in top metals consumer China as the latest data showed slowing factory activity. Asian shares turned tail on the first trading day of the new year as more disappointing economic data from China darkened the mood and upended US stock futures.
Three-month copper on the London Metal Exchange was down 0.3 percent at $5,947 a tonne by 0717 GMT, and the most-traded contract on the Shanghai Futures Exchange closed down 1 percent at 47,680 yuan ($6,953.58) a tonne. China’s factory activity contracted for the first time in 19 months in December as domestic and export orders continued to weaken, a private survey showed, pointing to a rocky start for the world’s second-largest economy in 2019.
US cash soymeal basis offers mostly unchanged
Soymeal spot basis offers eased $2 per ton for barges loaded this month for the US Gulf Coast on Wednesday while offers were largely unchanged elsewhere in Midwest, dealers said. Demand remained relatively light as many end users bought sufficient amounts of the animal feed to last through the holidays, when rail shipments can be disrupted.
The CME Group posted 514 deliveries against Chicago Board of Trade January soymeal futures late on Monday. CBOT March soymeal futures at midday on Wednesday were up $5.10 to $315.00 per ton.
Raw sugar slides to three-month low
Raw sugar futures on ICE hit a three-month low on Wednesday, dragged down by concerns about a global economic slowdown while cocoa also fell. March raw sugar settled down 0.1 cent, or 0.83 percent, at 11.93 cents per lb after setting a three-month low of 11.83 cents.
Dealers said funds had been extending a net short position against the backdrop of macroeconomic concerns and that improving crop outlooks in key producers India and Thailand remained bearish influences.
Malaysian palm jumps
Malaysian palm oil futures rose to their highest in nearly two weeks on the first trading day of 2019, after world’s largest edible oil importer India announced import tax cuts, amid expectations of a fall in production.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange was up 2.1 percent at 2,166 ringgit ($523.82) a tonne at the close of trade, its strongest daily gains in two and a half weeks. It earlier rose as much as 2.4 percent to 2,171 ringgit, its strongest levels since December.
Uganda’s coffee exports down
Uganda’s coffee exports in November fell 7.5 percent from the same period last year, undercut by a weak harvest in some parts of the East African country where the crop is grown, according to a report seen by Reuters on Thursday. According to the report by the state sector regulator Uganda Coffee Development Authority (UCDA), the country exported 409,940 60-Kilograme bags in November, compared to 443,100 bags shipped in the same month in 2017.