Commodities Market Roundup 23 May 2022:
SAPURA Energy Bhd shares rose to a five-month high of 10 sen on Monday (May 23), making the stock the most actively traded in the local market. At the opening, the stock was higher by two sen, or 28.57 percent, at nine sen and entered the day at a high of ten sen. Shares in Sapura closed at nine sen at noon on Monday, giving the company a market capitalization of RM1.44 billion. Shares of the counter changed hands for 651.3 million shares, or 4.08% of its issuance capital.
The Brent oil price began climbing higher on Monday to stop the recent downward trend and head toward recovery on an intraday basis, where we expect to reach the 115.10 level. The Brent oil price didn’t show a strong move since the morning, and as long as the price remains above 110.05, we’ll remain bullish until we receive an additional positive trigger that will assist in pushing the price to reach the main target at 115.10. Today is expected to be a range-bound day between 109.50 support and 115.00 resistance.
Crude oil futures traded marginally higher on Monday as demand from the US and China increased and the dollar weakened. Brent crude oil futures were at $113.37 at the time of writing, up 0.72 percent, and WTI crude oil futures were at $110.91, up 0.57 percent. On the Multi Commodity Exchange (MCX), crude oil futures traded at *8,620 in the early trade compared with the previous close of *8,618, up by 0.02 percent; and July futures traded at *8,406 compared with the previous close of *8,404, also up by 0.02 percent.
The price of U.S. natural gas futures ticked up about 2% on Monday as exports of liquefied natural gas (LNG) rose to a seven-week high, raising concerns about stockpiles of high-quality gas. Gas stockpiles in the United States have fallen below typical levels for this time of year in the past couple of weeks, causing a shortage in Northwest European storage. Due to the much higher European prices, pipeline exports from Russia and LNG tankers worldwide keep increasing. The front-month U.S. gas futures contract for June delivery gained 14 cents, or 1.7%, to $8.223 per million British thermal units (mmBtu).
In markets today, gold and silver rates climbed, tracking higher rates for precious metals globally. Gold rose to near $1,850 levels on global markets, boosted by a drop in the US dollar, but higher US Treasury yields limited gains. Foreign investors benefit from a weaker dollar by buying gold. Investors believe easing Chinese lockdowns will aid global growth, which has led to a decline in the dollar index.
On Monday, gold prices in international markets rose more than a week after an easing dollar-supported greenback-priced bullion despite rising US Treasury yields. A spot gold price of $1,848.96 an ounce rose 0.2 percent today. The Multi-Commodity Exchange (MCX) rose 0.3 percent to $657.93 for a ten-gram gold contract at the time of writing. Comex gold prices traded around half a percent higher on Monday at $1854 per ounce, up to half a percent. On Monday, the gold price rose on a weaker dollar, which fell below 103. Increased fuel prices and concerns about growth could support the yellow metal as an inflation hedge.
The corn and soybean futures markets are trending downward, while wheat futures are trending higher. For much of the northern Corn Belt, it finally dried over the weekend, and planting progress is expected to be rapid. There is a decline in stock prices worldwide; grain markets in China are steady to higher; wheat futures on the MTFE in Europe are higher. Stock markets around the globe are positive.
According to the USDA Crop Progress Report, 79% of corn planting is complete. There is plenty of moisture now, and none of the extended forecasts anticipate significant weather problems. You can expect last week’s closing corn price to confirm a seasonal high, closing below the previous 4 weeks’ low. June corn prices are down 2%, while December corn prices are up 1%.
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