World oil prices settle 2pc lower
Oil prices settled down about 2 percent on Friday, ending around 3 percent lower on the week as concerns over global demand growth after weak US manufacturing data overshadowed OPEC-led supply cuts and sanctions on Venezuela and Iran.
US West Texas Intermediate crude (WTI) futures fell $1.42, or 2.5 percent, to settle at $55.80 per barrel, after hitting $57.88, its highest since mid-November. Global benchmark Brent crude futures for May settled $1.24, or 1.9 percent, lower at $65.07 a barrel. Despite hitting their highest levels since mid-November this week, Brent futures ended the week 3.3 percent lower and WTI dropped 2.7 percent.
The 14-member Organization of the Petroleum Exporting Countries pumped 30.68 million barrels per day (bpd) in February, a Reuters survey showed, down 300,000 bpd from January and the lowest OPEC total since 2015.
In Venezuela, oil exports have plunged 40 percent to around 920,000 bpd since the US government slapped sanctions on its petroleum industry on Jan. 28.
OPEC, of which Venezuela is a founding member, is leading efforts to withhold around 1.2 million bpd of supply from the market to prop up prices. Venezuela is exempt from the cuts.
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Gold on course for worst week
Gold slipped to two-week lows and was set for its biggest weekly fall in nearly four months on Friday, pressured by a reviving dollar and as equity markets bounced back.
Spot gold is down about 1.6 percent so far this week, which could be its biggest weekly decline since the week ending Nov. 9. It was down 0.4 percent at $1,307.01 an ounce, having touched its lowest since Feb. 14 at $1,305.43.
US gold futures shed 0.6 percent to $1,308.40.
Gold rose to a 10-month peak last week, helped by expectations that the US central bank will pause interest rate increases and hopes of a US-China trade deal, but has declined about 3 percent since.
Holdings of the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, on Thursday fell 0.52 percent to 784.22 tonnes, their lowest level since late December.
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Colombia to examine selling coffee at its own price
Colombia, the world’s top producer of washed arabica, will look into selling its harvest at a price which covers production costs, without being tied to the New York market price, the national coffee federation said on Tuesday.
The federation has long sounded the alarm about low prices, which leave many growers operating at a loss, making the case to large coffee buyers that they should ensure producers make a profit and asking the government for subsidies. Farmers need to make 760,000 pesos (about $240) per 125 kg (275 pounds) shipment on the internal market to meet production costs, the federation has said. Prices on the internal market were 690,000 pesos per shipment on Monday.
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China coal-rich region closes 22 coal mines in 2018
North China’s coal-rich region of Inner Mongolia shut down 22 coal mines in 2018, cutting production capacity by 11.1 million tonnes, local authorities said on Wednesday. All of the closed mines were small, less profitable ones with relatively backward facilities, and their closure helped upgrade industrial structure and promote quality development of the coal industry, the regional government said. Efforts have also been made to expand the industrial chain and promote technological innovations on the cleaner and more efficient use of coal, it said. In 2018, raw coal output in the region reached 926 million tonnes, accounting for more than a quarter of China’s total. Its coal production capacity stood at 1.33 billion tonnes.
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Palm oil hits lowest levels since year began
Malaysian palm oil futures declined for a fourth day on Wednesday, falling to their weakest levels since the start of the year on expectations of weaker demand, a stronger ringgit currency and weaker related edible oils. Gains in the ringgit, palm’s currency of trade, usually make the edible oil more expensive for foreign buyers. The ringgit was last up 0.1 percent against the dollar at 4.0640 and are trading at its strongest levels in about six months. The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange dropped 2.3 percent to 2,132 ringgit ($524.61) a tonne at the close of trade. It earlier fell to 2,129 ringgit, its lowest levels since Dec. 31.
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Copper eases but holds near 8-month high on demand optimism
Copper eased on Wednesday as funds took profits after prices failed to break above a key resistance level, but expectations of strong demand from top consumer China kept them near eight-month highs. Benchmark copper on the London Metal Exchange was down 0.1 percent at $6,490 a tonne at 1112 GMT. Prices of the metal used widely in power and construction touched $6,540 on Monday, the highest since July. China’s banks made the most new loans on record in January, totalling 3.23 trillion yuan ($484 billion), as policymakers try to jumpstart sluggish investment and prevent a sharper slowdown.
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China iron ore, steel prices rise ahead of peak construction season
China’s iron ore futures on Wednesday recovered from a three-week low hit in the previous session, as demand from steel mills continued to pick up ahead of the peak spring construction season.
The most traded iron ore contract on the Dalian Commodity Exchange, for May delivery, was up 0.8 percent at 598 yuan ($89.42) a tonne as of 0215 GMT. The contract had shed 3.2 percent on Tuesday and hit 586 yuan, its lowest since Feb. 1, on news that Brazilian exports of the steelmaking raw material were averaging higher year-on-year despite miner Vale’s tailings dam accident last month. .
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CBOT wheat down after hitting contract lows
Chicago Board of Trade (CBOT) wheat futures fell on Wednesday, failing to rebound after hitting contract lows this week following concerns over international demand for US supplies.
CBOT May soft red winter wheat fell 1-1/2 cents to $4.66-3/4 a bushel. K.C. May hard red winter wheat rose 1-1/4 cents to end at $4.45-1/2 a bushel, while MGEX March spring wheat fell 1 cent to $5.54 a bushel. Stiff global competition has weighed on wheat futures recently. All Chicago and K.C. wheat futures contracts posted contract lows earlier this week.
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India’s Jan rubber imports drop 4.8pc
India’s natural rubber imports in January eased 4.8 percent from a year earlier to 39,997 tonnes, the state-run Rubber Board said on Wednesday, as local consumption fell due to weak demand from tyre makers.
The country’s production last month eased 1.4 percent from a year ago to 72,000 tonnes, while consumption dropped 2.4 percent to 97,000 tonnes, the board said. India’s imports between April to January jumped more than 30 percent from a year ago to 489,085 tonnes, it said.