Commodities make bright start to 2010
Sunday, 10 January 2010
LONDON, Jan 9 (AFP): Commodities enjoyed a bright start to 2010, with oil bouncing above 83 dollars and sugar striking a 29-year high as traders eyed recovery hopes despite poor US jobs data.
Markets tailed off somewhat on Friday as traders digested news that the United States-a major consumer of raw materials --shed more jobs than expected in December.
OIL: The market jumped in the first trading week of 2010 largely because of a cold snap across the northern hemisphere which boosted heating fuel demand but players pared gains after a downbeat US jobs report.
New York crude topped 83 dollars on Wednesday for the first time for 14 months before closing lower on Thursday for the first time in 10 sessions as traders banked profits.
Oil begun 2010 with a bang Monday, soaring by more than two dollars as freezing temperatures spread.
US crude oil reserves rose by 1.3 million barrels in the week ending January 1, instead of the expected drop of some 300,000 barrels.
Prices fell again on Friday after data showed that the US-the world's biggest energy consuming nation-shed 85,000 jobs in December, much more than expected.
By late Friday, New York's main futures contract, light sweet crude for delivery in February, rallied to 82.22 dollars a barrel from 79.36 dollars on Thursday of the previous week.
London's Brent North Sea crude for February advanced to 81.05 dollars from 77.93 dollars.
PRECIOUS METALS: Platinum and palladium prices soared to equal recent highs after the US launch of exchange traded funds (ETFs) for both metals.
Platinum rallied as high as 1,578 dollars per ounce, the best level since August 2008 while palladium hit 434.25 dollars an ounce, the best since July that year.
By Friday on the London Bullion Market, gold rose to 1,126.75 dollars an ounce, from 1,104 dollars the previous Thursday before the New Year holiday break.
Silver soared to 18.12 dollars an ounce from 16.99 dollars.
On the London Platinum and Palladium Market, platinum soared to 1,569 dollars an ounce from 1,466 dollars.
Palladium jumped to 431 dollars an ounce from 402 dollars.
BASE METALS: Base metals diverged but copper hit multi-month highs on news of a strike in key producer Chile which was later settled.
Copper struck 7,796 dollars per tonne Thursday, its highest level since August 2008.
Since early last year, copper prices have rocketed by more than 130 per cent, spurred upward by signs of global economic recovery and Chinese demand.
By Friday on the London Metal Exchange, copper for delivery in three months jumped to 7,525 dollars a tonne from 7,408 dollars on Thursday of the previous week.
Three-month aluminium rose to 2,323 dollars a tonne from 2,245 dollars.
Three-month lead gained to 2,580 dollars a tonne from 2,440 dollars.
Three-month tin increased to 17,571 dollars a tonne from 16,875 dollars.
Three-month zinc eased to 2,570 dollars a tonne from 2,575 dollars.
Three-month nickel fell to 18,330 dollars a tonne from 18,848 dollars.
SUGAR: Sugar prices scaled 29-year highs, lifted by predictions of lower output in emerging economic giant India.
On Thursday, unrefined sugar hit 28.95 US cents a pound, the highest level since January 1981.
The commodity more than doubled in value last year owing to tight supplies and keen demand.
By Friday on the New York Board of Trade (NYBOT), the price of unrefined sugar for March rose to 28.14 US cents a pound from 27.24 cents on Thursday of the previous week.
On LIFFE, London's futures exchange, the price of a tonne of white sugar for delivery in March climbed to 730.30 pounds from 706.30 pounds.
COCOA: Prices rose towards their recent 30-year high on production concerns in leading producer Ivory Coast.
In London on December 17, cocoa struck 2,337 pounds a tonne - a level last seen in October 1977.
By Friday on LIFFE, the price of cocoa for delivery in March rose to 2,282 pounds a tonne from 2,216 pounds on Thursday of the previous week.
On the NYBOT, the March cocoa contract rose to 3,312 dollars a tonne from 3,262 dollars.
COFFEE: Coffee prices soared as investment funds returned to the market.
By Friday on LIFFE, Robusta for delivery in March rallied to 1,397 dollars a tonne from 1,323 dollars Thursday of the previous week.
On the NYBOT, Arabica for March rose to 144.75 US cents a pound from 137.95 cents.
GRAINS AND SOYA: Grains and soya prices diverged in subdued trade.
By Friday on the Chicago Board of Trade, maize for delivery in March firmed to 4.18 dollars a bushel from 4.14 dollars Thursday of the previous week.
March-dated soyabean meal-used in animal feed-fell to 10.21 dollars from 10.48 dollars.
Wheat for March rose to 5.58 dollars a bushel from 5.41 dollars.
Markets tailed off somewhat on Friday as traders digested news that the United States-a major consumer of raw materials --shed more jobs than expected in December.
OIL: The market jumped in the first trading week of 2010 largely because of a cold snap across the northern hemisphere which boosted heating fuel demand but players pared gains after a downbeat US jobs report.
New York crude topped 83 dollars on Wednesday for the first time for 14 months before closing lower on Thursday for the first time in 10 sessions as traders banked profits.
Oil begun 2010 with a bang Monday, soaring by more than two dollars as freezing temperatures spread.
US crude oil reserves rose by 1.3 million barrels in the week ending January 1, instead of the expected drop of some 300,000 barrels.
Prices fell again on Friday after data showed that the US-the world's biggest energy consuming nation-shed 85,000 jobs in December, much more than expected.
By late Friday, New York's main futures contract, light sweet crude for delivery in February, rallied to 82.22 dollars a barrel from 79.36 dollars on Thursday of the previous week.
London's Brent North Sea crude for February advanced to 81.05 dollars from 77.93 dollars.
PRECIOUS METALS: Platinum and palladium prices soared to equal recent highs after the US launch of exchange traded funds (ETFs) for both metals.
Platinum rallied as high as 1,578 dollars per ounce, the best level since August 2008 while palladium hit 434.25 dollars an ounce, the best since July that year.
By Friday on the London Bullion Market, gold rose to 1,126.75 dollars an ounce, from 1,104 dollars the previous Thursday before the New Year holiday break.
Silver soared to 18.12 dollars an ounce from 16.99 dollars.
On the London Platinum and Palladium Market, platinum soared to 1,569 dollars an ounce from 1,466 dollars.
Palladium jumped to 431 dollars an ounce from 402 dollars.
BASE METALS: Base metals diverged but copper hit multi-month highs on news of a strike in key producer Chile which was later settled.
Copper struck 7,796 dollars per tonne Thursday, its highest level since August 2008.
Since early last year, copper prices have rocketed by more than 130 per cent, spurred upward by signs of global economic recovery and Chinese demand.
By Friday on the London Metal Exchange, copper for delivery in three months jumped to 7,525 dollars a tonne from 7,408 dollars on Thursday of the previous week.
Three-month aluminium rose to 2,323 dollars a tonne from 2,245 dollars.
Three-month lead gained to 2,580 dollars a tonne from 2,440 dollars.
Three-month tin increased to 17,571 dollars a tonne from 16,875 dollars.
Three-month zinc eased to 2,570 dollars a tonne from 2,575 dollars.
Three-month nickel fell to 18,330 dollars a tonne from 18,848 dollars.
SUGAR: Sugar prices scaled 29-year highs, lifted by predictions of lower output in emerging economic giant India.
On Thursday, unrefined sugar hit 28.95 US cents a pound, the highest level since January 1981.
The commodity more than doubled in value last year owing to tight supplies and keen demand.
By Friday on the New York Board of Trade (NYBOT), the price of unrefined sugar for March rose to 28.14 US cents a pound from 27.24 cents on Thursday of the previous week.
On LIFFE, London's futures exchange, the price of a tonne of white sugar for delivery in March climbed to 730.30 pounds from 706.30 pounds.
COCOA: Prices rose towards their recent 30-year high on production concerns in leading producer Ivory Coast.
In London on December 17, cocoa struck 2,337 pounds a tonne - a level last seen in October 1977.
By Friday on LIFFE, the price of cocoa for delivery in March rose to 2,282 pounds a tonne from 2,216 pounds on Thursday of the previous week.
On the NYBOT, the March cocoa contract rose to 3,312 dollars a tonne from 3,262 dollars.
COFFEE: Coffee prices soared as investment funds returned to the market.
By Friday on LIFFE, Robusta for delivery in March rallied to 1,397 dollars a tonne from 1,323 dollars Thursday of the previous week.
On the NYBOT, Arabica for March rose to 144.75 US cents a pound from 137.95 cents.
GRAINS AND SOYA: Grains and soya prices diverged in subdued trade.
By Friday on the Chicago Board of Trade, maize for delivery in March firmed to 4.18 dollars a bushel from 4.14 dollars Thursday of the previous week.
March-dated soyabean meal-used in animal feed-fell to 10.21 dollars from 10.48 dollars.
Wheat for March rose to 5.58 dollars a bushel from 5.41 dollars.