World oil prices up 1.5pc on strong US data
Oil prices gained 1.5 percent on Friday as strong US employment data tempered fears about weakening global crude oil demand, and on expectations that an escalating conflict in Libya could tighten oil supplies.
Optimism that Washington and Beijing are approaching a trade deal also boosted crude prices.
Brent crude futures settled at $70.34 a barrel, up 94 cents, or 1.35 percent. The session high of $70.46 was the strongest since Nov. 12. US West Texas Intermediate (WTI) crude settled at $63.08 a barrel, up 98 cents, or 1.58 percent. Earlier in the session, WTI hit $63.24, the highest since Nov. 6. Brent recorded its second straight week of gains, while WTI saw its fifth consecutive weekly rise.
The US Labor Department report showed employment growth accelerated from a 17-month low in March. Military action in Libya, which could disrupt supply from the OPEC member, also aided prices.
Crude futures also received a boost from news of a potential slowdown in crude production out of Venezuela, as U.S. sanctions and energy blackouts hit the OPEC nation’s oil industry.
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Gold descends on US jobs data
Gold eased on Friday as Wall Street gained on data pointing to a rebound in jobs growth in the United States, but bullion’s losses were limited by a simultaneous slowdown in wage growth.
Spot gold slipped 0.1 percent to $1,290.75 per ounce in New York trading close on Friday. Prices touched their lowest since Jan. 25 at $1,280.59 on Thursday. The metal was down about 0.1 percent so far for the week. US gold futures settled 0.1 percent higher at $1,295.6 an ounce.
US employment growth accelerated from a 17-month low in March as milder weather boosted activity in sectors like construction, which could further allay fears of a sharp slowdown in economic growth in the first quarter, driving early gains on Wall Street.
Gold dipped as much as 0.6 percent at one point following the release of the report. However, bullion pared some of its losses as investors also took stock of other details from the report, which showed slower wage increases in March and worsening worker shortages. Holdings in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, were at their lowest since Dec. 10.
Spot platinum dipped 0.3 percent to $895, having earlier touched its highest since mid-June last year at $907.63. The metal is up about 5.7 percent this week, the most since January 2017. Palladium rose 0.4 percent to $1,372.01 an ounce, but was on course for a second weekly fall. Silver fell 0.6 percent to $15.06 per ounce, having fallen to its lowest since the end of December in the previous session.
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Brazil coffee crop seen at 55m bags
Brazil’s 2019 coffee crop, which is nearing the harvest period, should reach 55 million 60-kg bags, compared to the record output of 61.6 million bags in 2018, Italian processor Illy quoted as saying last Wednesday. Of that total, Illy expects that the milder arabica variety will account for 38 million bags, with production of robusta coffee seen at 17 million bags. Brazil’s government saw arabica production at 47.4 million bags and robusta output at 14.2 million bags in 2018. The Italian roaster expects a crop with good quality this year, despite the lower production, which it says is due to the biennial production cycle in Brazil which alternates years of high and low production. That cycle impacts mostly the arabica trees, with robusta crop showing a more stable output from one crop to another.
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Spring wheat falls sharply
US spring wheat futures fell 1.3 percent to their lowest in nearly nine months on Wednesday as the latest weather forecasts eased fears about flooding in the northern US Plains forcing farmers to cut back on their acreage plans for the crop. Soft red winter wheat futures were 1.6 percent higher, with the market underpinned by short-covering, traders said.
Corn also closed firmer but soybean futures settled lower after trading in positive territory for much of Wednesday’s session. Concerns about planting delays in the US Midwest provided support to corn but massive domestic supplies kept the gains in check. Profit-taking pressured the soybean market after it rallied sharply from the three-month low hit last week. MGEX spring wheat has fallen for five days in a row, with the front-month contract shedding 5.8 percent during the stretch and leaving the market prone to profit-taking by investment funds. MGEX spring wheat for May delivery ended down 7 cents at $5.34-3/4 a bushel after falling to a contract low of $5.32-1/4 during the session. Deferred spring wheat contracts also hit new lows on Wednesday.
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Base metals rise on optimism over trade talks, Chinese data
Prices of copper and other industrial metals rose on Wednesday as strong Chinese manufacturing data and reports of progress in US-China trade talks bolstered the demand outlook. Copper also reflected indigenous leaders in Peru rejecting talks with the government to end disruption at a major mine.
Benchmark copper on the London Metal Exchange (LME) closed up 1 percent at $6,492 a tonne, near last month’s eight-month high of $6,555.50. Metals prices have been stuck in a narrow range since late February, but strong Chinese purchasing managers’ index (PMI) data and positive signals from trade talks are lending support, BMO analyst Kash Kamal said. The Chinese Caixin/Markit composite manufacturing and services PMI rose to a nine-month high in March, adding to signs that stimulus is gradually kicking in.
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Malaysian palm oil hits 2-week high
Malaysian palm oil futures rose to a two-week high during trade on Wednesday, posting a third straight day of gains, on expectations of easing stockpiles and tracking strength in soyoil on the US Chicago Board of Trade (CBOT).
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange was up 1 percent at 2,175 ringgit ($533.48) a tonne at the end of the trading day. It earlier rose as much as 1.3 percent to 2,182 ringgit, its highest since March 21. Malaysian palm oil stockpiles rose to their highest in nearly two decades in December, and had last risen unexpectedly in February by 1.3 percent to 3.05 million tonnes. Official March data from the Malaysian Palm Oil Board is scheduled for release on April 10.
Exports from cargo surveyors earlier this week showed Malaysian palm oil shipments were up 22-28 percent in March from the previous month. In other related oils, the Chicago May soybean oil contract gained 1.4 percent on Tuesday, and was last up 0.4 percent on Wednesday. Soybean futures had gained on expectations of progress in trade talks between the United States and top soybean buyer China. Meanwhile, the May soyoil contract on the Dalian Commodity Exchange rose 0.8 percent, and the Dalian May palm oil contract gained 1.4 percent. Palm oil prices are affected by movements in soyoil, as they compete for a share in the global vegetable oil market.