Commodity Snapshot
Crude oil prices fell on Thursday due to investors assessing Chinese trade data and the Federal Reserve’s monetary policy path. Some market participants expected a delay in rate cuts. Less than expected build in U.S. crude stocks helped lift oil prices. Crude inventories rose for a sixth week in a row, building by 1.4 million barrels. Gasoline and distillate stocks fell more-than-expected.
China’s crude oil imports increased by 3.3% YoY to 10.74MMbbls/d in the first two months of 2024, but the overall buying trend remains soft due to slowing demand from refineries, weak economic indicators, and higher inventories. Soybean prices were trading lower due to a drop in imports, with soybean imports falling 8.8% YoY to 13.04mt for the first two months of the year, the lowest imports since 2019. Lower feedstock demand due to restrictions on pig production capacity is estimated to have hit soybean consumption in the country. Wheat and cocoa prices were trading higher.
Stocks to watch out for: NextDecade (NEXT), Summit Midstream (SMLP), Kolibri Global Energy (KGEI), Dawson Geophysical (DWSN), Viper Energy (VNOM), W & T Offshore (WTI), ProFrac Holding (ACDC), Crescent Energy (CRGY).
Copper prices rose, while precious metals traded mixed. Gold remained firm after Federal Reserve Chair Jerome Powell confirmed interest rate reductions this year. Spot gold was up by 0.39% at $2,156.59 an ounce. China’s focus on high-quality development in emerging sectors is expected to shift commodity consumption, with brokers expecting increased demand for high value-added commodities.
Recent Commodity Price Movements
Energy
Crude oil (CL1:COM) -0.58% to $78.67.
Natural Gas (NG1:COM) +1.10% to $1.95.
Metals
Palladium (XPDUSD:CUR) -0.61% to $1,035.62.
Platinum (XPTUSD:CUR) +1.27% to $918.90.
Copper (HG1:COM) +1.06% to $3.91.
Agriculture
Corn (C_1:COM) +2.95% to $422.11.
Wheat (W_1:COM) +0.74% to $524.03.
Cotton (CT1:COM) -2.50% to $96.66.
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