Oil price increases slightly
Oil prices have risen only slightly due to a less worried market about the rebellion against President Nicolas Maduro that will affect the country’s crude oil exports.
Prices increased after opposition leader in Venezuela called for military support to end Maduro’s regime, but the momentum eased after the government said the operation of state-owned oil company PDVSA was uninterrupted and Military generals remain loyal.
Brent crude oil futures reached the highest level at $ 73.27 a barrel and closed on April 30, up 76 US cents or 1.1% to $ 72.8 a barrel. West Texas WTI crude oil closed up 41 US cents or 0.7%, during the session, the price rose to 64.75 USD / barrel.
According to a Reuters survey, Venezuelan oil exports fell by US sanctions against PDVSA and the economic crisis, which helped OPEC output fall to its lowest level in four years.
If Maduro’s government remained in power longer, crude exports of Venezuela and crude oil would continue to fall as the country struggled with power outages and other problems.
Also supporting prices were government data showing US crude oil production fell 187,000 barrels / day in February 2019 to 11.7 million barrels / day, down for the second consecutive month.
Gold increased due to weak USD
The strong gold price in the last night session as the dollar dropped to the lowest level of a week, made gold more attractive, while investors waited for the US Federal Reserve’s interest rate decision to assess the monetary policy of this country.
Spot gold rose 0.3% to 1,283.66 USD / ounce. US gold futures closed up 0.3% to $ 1,285.7 an ounce. However, gold fell 0.6% this month, the third consecutive month of falling prices.
The dollar index (the dollar tracking index with other major currencies) has fallen to its lowest level since April 23, 2019, with a 0.4% decline that could be the biggest drop (calculated in%) for more than 3 weeks.
Investors followed the FED’s two-day policy meeting to get clues about US interest rates. A decision on interest rates will be announced today.
The merchants identified 61% of opportunities to cut interest rates in December 2019. Lower interest rates reduce the opportunity to hold gold and put pressure on the dollar, making it cheaper for buyers with other currencies.
Copper rose despite Chinese production data weakened
Copper prices rose in the last session as investors bet that China (the world’s leading consumer of copper) will react to weak production data with stimulus measures, while the dollar has weakened causing The metal is cheaper for buyers when using other currencies.
LME copper prices closed up 0.3% to $ 6,415 a ton.
The metal (used in the electricity and construction industries) has increased by about 8% this year on the hope that China might prevent a strong economic slowdown, but prices have stuck around $ 6,500 since the end of the month. 2/2019.
Daniel Briesemann, an analyst at Commerzbank, said a trade deal between the US and China will raise the price of copper, but predicts prices will return to $ 6,500 a ton by the end of the year.
Also support the copper price is USD weakened.
Two surveys have shown that China’s production growth has lost momentum in April 2019. The sudden decline after optimistic data in March 2019 raised the hope that the world’s largest metal consumer is returning by solid steps.
US Treasury Secretary Steven Mnuchin said he hoped to "make significant progress" with Chinese negotiators in the next two rounds of trade negotiations. The euro area and the US reported positive economic data.
Zinc also increased by more than 1% when the spot price was higher than 134.5 USD (the highest level since 1997) compared to the 3-month price of zinc delivered on London metal trading floor, showing a short-term supply shortage.
However, zinc reserves at LME increased to 81,325 tons from a record low of 50,000 tons at the beginning of April 2019.
Closing the session, zinc price increased by 1.2% to USD 2,825.50 / ton near the highest level of 9.5 months at USD 2,958 / ton.
Rubber increased
Malaysia rubber market closed up due to new demand.
Kuala Lumpur rubber market will be closed on May 1 and reopen on May 2.
Rubber price of Malaysia Rubber Committee of SMR 20 increased by 0.5 RM to 614 RM / kg, while latex decreased by 2.5 RM to 484 RM / kg.
The closing price for SMR 20 increased by 7.5 RM to 627 RM / kg, while latex increased by 1 RM to 488 RM / kg.
Increased sugar due to expired 5/2019 contract
Raw sugar futures in May 2019, which expired at the end of last night, rose 0.36 US cents or 2.8% to 11.99 US cents / lb.
Cofco International, a Chinese branch of the state-owned food company, is considered the only buyer of the futures contract in May 2019.
The difference between the May contract and July 2019 is -0.35 US cents, recovering after a 2-day decline. Raw sugar for the July 2019 term closed with a rise of 0.01 US cents or 0.1% to 12.34 US cents / lb, this contract fell nearly 2.5% in April 2019.
Rising oil prices may encourage sugar mills to produce bioethanol, helping to support the recovery of sugar.
White sugar for August 2019 term on ICE increased by 40 US cents or 0.1% to 334.90 USD / ton.
Prices of Chinese apples continue to set new records
China’s apple production fell in the last year due to severe weather conditions. The amount of Fuji apples currently stored is quite low. Price has been at its highest level in years. The peak period was around the Chinese Spring Festival (February 5, 2019). The price at that time was about 2 CNY / kg, equivalent to last year’s price. Recent prices reached 4 CNY / kg. Supply from production areas is not enough to meet demand. The price of apples still increased by about 0.1 or 0.2 CNY per day and the new apple harvest is expected to go to market in the next few months. Prices of Fuji apples are expected to rise higher.
Prices of some key products are on the morning of May 1
