Commodities shaken as China reins in economy
Sunday, 17 January 2010
LONDON, Jan 16 (AFP): Commodity markets were rattled this week as China tightened money supply in a bid to tame economic growth and prevent a looming asset bubble, analysts said.
China, one of the biggest consumers of raw materials, moved Tuesday to rein in a surge of aggressive lending by banks that had raised fears of inflation and an unhealthy concentration of assets.
OIL: World crude prices slumped under 78 dollars a barrel this week on concerns over weak energy demand-but not before spiking to a 15-month high thanks to recent robust Chinese energy data, analysts said.
In choppy trade, New York crude had struck a 15-month high of 83.95 dollars on Monday.
China, the world's second-largest energy consumer behind the United States, saw exports surge 17.7 per cent in December, after 13 months of declines.
The US Department of Energy said crude reserves soared 3.7 million barrels in the week ending January 8, far more than the consensus forecast for a 1.0- million-barrel gain.
By late Friday, New York's main futures contract, light sweet crude for delivery in February, dived to 78.44 dollars a barrel from 82.22 dollars a week earlier.
London's Brent North Sea crude for March delivery plunged to 77.55 dollars compared with 81.05 dollars for the now-expired February contract a week earlier.
PRECIOUS METALS: Platinum and palladium hit fresh multi- month highs, buoyed by Chinese demand and last week's US launch of exchange traded funds (ETFs).
Platinum rallied as high as 1,627.38 dollars per ounce, the best level since August 2008, and palladium hit 454 dollars an ounce, which was last witnessed in July that year.
Gold, meanwhile, forged a five-week peak amid a prediction from consultancy GFMS that it would likely hit new historic highs this year-thanks to a wave of investment money.
GFMS also forecast Wednesday that investment demand for gold would be propelled by fears of a so-called "double dip" recession which would see the battered world economy plunged back into another downturn.
By Friday on the London Bullion Market, gold rose to 1,128 dollars an ounce, from 1,126.75 dollars the previous week.
Silver gained to 18.52 dollars an ounce from 18.12 dollars.
On the London Platinum and Palladium Market, platinum increased to 1,600 dollars an ounce from 1,569 dollars.
Palladium jumped to 449 dollars an ounce from 431 dollars.
BASE METALS: Base metals mainly fell as many investors re- allocated their cash elsewhere and after China attempted to cool its economy, but tin forged a 16-month pinnacle on the back of keen demand.
By Friday on the London Metal Exchange, copper for delivery in three months fell to 7,430 dollars a tonne from 7,525 dollars the previous week.
Three-month aluminium slid to 2,317 dollars a tonne from 2,323 dollars.
Three-month lead recoiled to 2,460 dollars a tonne from 2,580 dollars.
SUGAR: Sugar prices ran into profit-taking after scoring 29- year highs the previous week on forecasts of lower output from India.
By Friday on the New York Board of Trade (NYBOT), the price of unrefined sugar for March dipped to 27.46 US cents a pound from 28.14 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 fell to 719.20 pounds from 730.30 pounds.
COCOA: Prices soared close to a 30-year pinnacle on news of resurgent demand for the raw material that is mostly used to make chocolate.
In London, cocoa struck 2,312 pounds a tonne-which was a whisker away from the 2,337 dollars hit on December 17. That was last seen in October 1977.
By Friday on LIFFE, the price of cocoa for delivery in March rose to 2,297 pounds a tonne from 2,282 pounds the previous week.
On the NYBOT, the March cocoa contract gained to 3,397 dollars a tonne from 3,262 dollars.
COFFEE: Coffee prices drifted lower in quiet trade.
By Friday on LIFFE, Robusta for delivery in March eased to 1,375 dollars a tonne from 1,397 dollars the previous week.
On the NYBOT, Arabica for March fell to 140.90 US cents a pound from 144.75 cents.
GRAINS AND SOYA: Grains and soya prices dipped on news of a record corn crop in the United States.
By Friday on the Chicago Board of Trade, maize for delivery in March fell to 3.75 dollars a bushel from 4.23 dollars the previous week.
March-dated soyabean meal-used in animal feed-sank to 9.84 dollars from 10.22 dollars.
China, one of the biggest consumers of raw materials, moved Tuesday to rein in a surge of aggressive lending by banks that had raised fears of inflation and an unhealthy concentration of assets.
OIL: World crude prices slumped under 78 dollars a barrel this week on concerns over weak energy demand-but not before spiking to a 15-month high thanks to recent robust Chinese energy data, analysts said.
In choppy trade, New York crude had struck a 15-month high of 83.95 dollars on Monday.
China, the world's second-largest energy consumer behind the United States, saw exports surge 17.7 per cent in December, after 13 months of declines.
The US Department of Energy said crude reserves soared 3.7 million barrels in the week ending January 8, far more than the consensus forecast for a 1.0- million-barrel gain.
By late Friday, New York's main futures contract, light sweet crude for delivery in February, dived to 78.44 dollars a barrel from 82.22 dollars a week earlier.
London's Brent North Sea crude for March delivery plunged to 77.55 dollars compared with 81.05 dollars for the now-expired February contract a week earlier.
PRECIOUS METALS: Platinum and palladium hit fresh multi- month highs, buoyed by Chinese demand and last week's US launch of exchange traded funds (ETFs).
Platinum rallied as high as 1,627.38 dollars per ounce, the best level since August 2008, and palladium hit 454 dollars an ounce, which was last witnessed in July that year.
Gold, meanwhile, forged a five-week peak amid a prediction from consultancy GFMS that it would likely hit new historic highs this year-thanks to a wave of investment money.
GFMS also forecast Wednesday that investment demand for gold would be propelled by fears of a so-called "double dip" recession which would see the battered world economy plunged back into another downturn.
By Friday on the London Bullion Market, gold rose to 1,128 dollars an ounce, from 1,126.75 dollars the previous week.
Silver gained to 18.52 dollars an ounce from 18.12 dollars.
On the London Platinum and Palladium Market, platinum increased to 1,600 dollars an ounce from 1,569 dollars.
Palladium jumped to 449 dollars an ounce from 431 dollars.
BASE METALS: Base metals mainly fell as many investors re- allocated their cash elsewhere and after China attempted to cool its economy, but tin forged a 16-month pinnacle on the back of keen demand.
By Friday on the London Metal Exchange, copper for delivery in three months fell to 7,430 dollars a tonne from 7,525 dollars the previous week.
Three-month aluminium slid to 2,317 dollars a tonne from 2,323 dollars.
Three-month lead recoiled to 2,460 dollars a tonne from 2,580 dollars.
SUGAR: Sugar prices ran into profit-taking after scoring 29- year highs the previous week on forecasts of lower output from India.
By Friday on the New York Board of Trade (NYBOT), the price of unrefined sugar for March dipped to 27.46 US cents a pound from 28.14 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 fell to 719.20 pounds from 730.30 pounds.
COCOA: Prices soared close to a 30-year pinnacle on news of resurgent demand for the raw material that is mostly used to make chocolate.
In London, cocoa struck 2,312 pounds a tonne-which was a whisker away from the 2,337 dollars hit on December 17. That was last seen in October 1977.
By Friday on LIFFE, the price of cocoa for delivery in March rose to 2,297 pounds a tonne from 2,282 pounds the previous week.
On the NYBOT, the March cocoa contract gained to 3,397 dollars a tonne from 3,262 dollars.
COFFEE: Coffee prices drifted lower in quiet trade.
By Friday on LIFFE, Robusta for delivery in March eased to 1,375 dollars a tonne from 1,397 dollars the previous week.
On the NYBOT, Arabica for March fell to 140.90 US cents a pound from 144.75 cents.
GRAINS AND SOYA: Grains and soya prices dipped on news of a record corn crop in the United States.
By Friday on the Chicago Board of Trade, maize for delivery in March fell to 3.75 dollars a bushel from 4.23 dollars the previous week.
March-dated soyabean meal-used in animal feed-sank to 9.84 dollars from 10.22 dollars.