World oil prices tumble
Oil prices fell on Friday to their lowest since the third quarter of 2017, heading for losses of more than 11 percent in a week, as global oversupply kept buyers away from the market ahead of holidays over the next two weeks.
Crude has lost ground along with major equity markets as investors fret about the strength of the global economy heading into next year. The prospect of a possible government shutdown in the United States, the world’s biggest oil consumer, has added to investors’ worries.
Oil markets have pulled back amid concerns about oversupply, despite planned production cuts by the Organization of the Petroleum Exporting Countries.
The price declines were exacerbated by thin trade and risk aversion ahead of the Christmas and New Year holidays, traders said.
Brent crude LCOc1 fell 53 cents, or nearly 1 percent, to settle at $53.82 a barrel, after falling during the session to $52.79 a barrel, the weakest since September 2017.
US light crude oil CLc1 settled down 29 cents at $45.59 a barrel, after earlier touching a session low of $45.13 a barrel.
[divider style=”normal” top=”20″ bottom=”20″]
China buys 1.5 mil mt US soybeans as trade restarts
Two state-owned Chinese companies including China Grain Reserves Corp (Sinograin) and China National Cereals, Oils and Foodstuffs Corporation (COFCO) on Tuesday purchased an estimated 1.5 million mt of soybeans from the US, according to market sources. This latest purchase puts the total quality acquired by China to 3 million mt of soybeans since the G20 summit in Buenos Aires.
[divider style=”normal” top=”20″ bottom=”20″]
Gold gains amid weaker dollar, equities sell-off
Gold prices edged higher on Thursday supported by a softer dollar and weakness in the equities market, after the US Federal Reserve delivered a less-dovish outlook on monetary tightening than many had expected. In a widely anticipated decision, the U.S. central bank hiked interest rates by 25 basis points on Wednesday.
But what took markets by surprise was the Fed’s commitment to retain the core of its plan to tighten monetary policy, despite rising uncertainty about global economic growth. Spot gold rose 0.4 percent to $1,248.48 per ounce at 0742 GMT, after declining the most since Nov. 27 in the previous session. Prices crossed the 200-day moving average around $1,252 an ounce before the Fed’s statement on Wednesday. US gold futures declined 0.4 percent to $1,251.3 per ounce on Thursday. The dollar, which measures the greenback against a basket of six major currencies, was down 0.4 percent, while Asian shares slid as Fed’s statement dashed investor hopes for a more dovish policy outlook. As investors flocked to the safety of government bonds, U.S. benchmark Treasury yields fell to more than eight-month lows on Wednesday. The rate hike announcement has put pressure on gold. There is some good support at $1,230-$1,235, said a trader based in Hong Kong, adding that in the near-term, the dollar index was going to be a “good proxy” for what gold is going to do.
[divider style=”normal” top=”20″ bottom=”20″]
CBOT soybeans may fall towards $8.82
CBOT soybean January contract may fall towards $8.82 per bushel, as suggested by a retracement analysis. The analysis is on the downtrend from $10.63-1/4 to $8.26-1/4. It reveals that the contract failed a few times to break a resistance at $9.16-3/4, the 38.2 percent retracement.
The failures have caused the current fall towards the support at $8.82, which is indicated by a rising channel as well. However, this target looks a bit too aggressive. A more realistic target is fixed at $8.91-3/4 on the hourly chart, which is the 61.8 projection level of an upward wave C from $8.57. Following the break below the support at $8.99-3/4, the contract may slide to $8.91-3/4 or $8.85. A break above $8.99-3/4, now a resistance, may lead to a gain limited to $9.05-1/2.
[divider style=”normal” top=”20″ bottom=”20″]
[ads1]
Copper rebounds on hopes a fed rate pause will lift demand
Copper rebounded cautiously on Wednesday from three-month lows hit in the previous session on hopes the US central bank would slow the pace of interest rate rises, supporting metals demand.
The dollar weakened on expectations that the US Federal Reserve will signal later on Wednesday it will cut the number of hikes it anticipates next year. The bulk of metals demand comes from emerging market nations such as China, while a weaker dollar makes commodities priced in the greenback cheaper for buyers using other currencies. Three-month copper on the London Metal Exchange rose 0.8 percent in closing open outcry trading to $6,015 a tonne, paring some of the 2.5 percent losses it posted on Tuesday when it hit a three-month low.
[divider style=”normal” top=”20″ bottom=”20″]
Aluminium hits 16-month low as us withdraws Rusal sanctions
London aluminium prices sank to a 16-month low on Thursday after the United States said it would withdraw sanctions on Russian aluminium producer Rusal, while other metals fell on signs the US Federal Reserve would continue to hike interest rates.
Three-month aluminium on the London Metal Exchange fell by as much as 1.1 percent to $1,905.50 a tonne, the lowest since Aug. 4, 2017, and stood at $1,915.50 a tonne at 0711 GMT. Prices had hit a near seven-year high when the sanctions were announced in April on fears of a supply shortage. The impact on the Shanghai Futures Exchange was more muted, with the most-traded February aluminium contract slipping as much as 0.6 percent before closing flat at 13,690 yuan ($1,984.17) a tonne. John Browning, managing director of Bands Financial in Shanghai, said he did not expect the lifting of the sanctions to affect the ShFE aluminium price as much. China is the world’s biggest aluminium producer.
[divider style=”normal” top=”20″ bottom=”20″]
Raw sugar off lows; London cocoa at 6-week top
Raw sugar futures rose on Wednesday, propelled off the prior session’s 2-1/2 month low by a stronger Brazilian currency and more upbeat energy markets, while London cocoa set a six-week high and coffee also climbed. March raw sugar was up 0.27 cent, or 2.2 percent, at 12.57 cents per lb by 1459 GMT.
Prices hit a 2-1/2 month low of 12.26 cents in the prior session, dragged down by a slump in crude oil. The market was supported on Wednesday by speculative buying inspired by more upbeat energy prices. The oil/sugar correlation is being closely watched as gasoline prices have a material influence in Brazil’s ethanol/ sugar mix. Weaker energy prices reduce the competitiveness of ethanol, bolstering worries that Brazil’s mills may switch more of their production back to sugar from the biofuel.
[divider style=”normal” top=”20″ bottom=”20″]
Egypt’s GASC receives offers in vegetable oil tender
A tender by Egyptian state buyer GASC for soyoil drew a lowest offer of $653.30 per tonne for 15,000 tonnes, trade sources said on Wednesday.
The lowest offer for sunflower oil was $686.50 a tonne for 30,000 tonnes, traders said. GASC is expected to announce the results of the tender, which called for cargoes to arrive during Feb. 10-25, later on Wednesday.