video news
Its time to look at the trends in the raw material market. Lets check the international oil price today. According to the International Energy Agency, oil production in Russia, the worlds second largest oil producer, is expected to decline by 3 million barrels per day from April. On the news, international oil prices rebounded 8% today and recovered to the $100 level again. WTI is trading at around $103 and Brent at around $106.
Next, lets look at the main grain prices. First of all, soybean futures, which fell 1% yesterday, are trading at 1668 cents per bushel. Cocoa prices moved slightly lower today and are moving in a flat area. In the middle of the day, it has come down to the lows of the last month. Prices are falling as the supply of cocoa from Côte dIvoire increases.
Coffee prices are also down 0.8% today. It has fallen to a low in the last 4 months. Investors continue to watch to see if the Ukrainian war will worsen the global economy. This is because the economic downturn leads to a decrease in coffee consumption.
Sugar prices are rising 1.7%. International oil prices affect sugar prices. Today, international oil prices soared again by 8%. An increase in international oil prices leads to an increase in ethanol prices. In Brazil, the largest exporter of sugarcane bioethanol, higher ethanol prices will reduce sugarcane pressing and increase ethanol production. Market prices are rising today as the sugar supply has dwindled.
Contrary to yesterday, Corn futures have been bullish since early today. It is currently up 3% and is moving around 753 cents per bushel. Likewise, wheat prices, which fell sharply yesterday, are now up 2% and are trading at around 191 cents per bushel.
Lets also look at the price of raw materials for metals. The price of nickel, which had recently been suspended from trading, reached its lower limit for the second day in a row when trading resumed. As of todays market, it is down 5% and is trading at around $41,900 per ton. According to CNBC, the nickel market continues to sell bombs. As I explained yesterday, on the first day of resumption of trading, the London Metal Exchange set the upper and lower price ranges of metals to +-5%, but then changed it back to +-8%.
As of yesterday, copper prices are rising today. 3% bullish. Last year, Goldman Sachs predicted that copper would be the key to decarbonization and that copper prices would rise by 70%, or $15,000, by 2025. Among exchanges, the London Metal Exchange is particularly liquid. There is also an observation that liquidity in the copper market will decrease due to the influence of the nickel market, which has been controversial due to the recent price surge. As liquidity decreases, copper price volatility is likely to increase in the coming months.
Aluminum prices have risen sharply for the second day in a row since yesterday. Long aluminum surged 7% today, moving around $3,490, on hopes for a stimulus in China, the largest consumer of aluminum.
Next, lets check the price of gold. Investors continue to keep an eye on Russia-Ukraine negotiations. Gold prices are rising today as the dollar weakens and Treasury yields fall. It is up 1% and is moving around the $1936 level.
Finally, the silver price. It is trading at the $25 level, rising 3%.
So far, we have delivered the market conditions for agricultural products and metal raw materials.
Kang Soo-min Foreign Correspondent
