Commodities slide on China concerns
Sunday, 24 January 2010
LONDON, Jan 23 (AFP): Most commodity markets fell this week as traders fretted over possible moves by Beijing to rein in the booming Chinese economy, which is a major consumer of raw materials.
However, sugar rocketed to a 29-year peak and cocoa forged a 33-year pinnacle as both were pushed higher by keen demand and tightening supplies.
China's red-hot economy expanded by 8.7 per cent in 2009, well exceeding the government's target of 8.0 per cent, new data showed Thursday as authorities intervened to avert the risk of overheating.
Gross domestic product in the world's third-largest economy, which analysts say is on track to overtake Japan, returned to double-digit growth in the fourth quarter. The growth of 10.7 per cent was the fastest in two years.
The chairman of the China Banking Regulatory Commission said in Hong Kong Wednesday that new bank loans in the country this year would fall to about 7.5 trillion yuan (1.1 trillion US dollars) from about 9.5 trillion yuan in 2009.
Analysts have said the policy was likely a response to concerns about asset bubbles, bad loans and an overheating economy.
OIL: World oil prices slumped against a background of weak global demand for energy, led by China and the United States-which are the world's two biggest consumers of crude.
Oil had closed down almost 1.50 dollars lower on Wednesday amid market concerns that a credit squeeze in China and swelling US stockpiles could dampen demand for the key commodity, traders said.
The market was also dampened as US President Barack Obama unveiled plans to crack down on the US financial sector on Thursday.
Oil prices jumped by about 80 per cent in 2009 as traders were heartened by evidence that the battered global economy was on the mend, with the eurozone, Japan and the United States escaping a fierce recession.
London's Brent North Sea crude for March delivery slumped to 73.52 dollars from 77.55 dollars a week earlier.
PRECIOUS METALS: Prices sank on the back of China concerns and the stronger dollar, and amid fears about soaring Greek public debt.
On Thursday, the euro had stuck a six-month low against the dollar as worries that China will cool its booming economy curbed demand for risk- sensitive currencies.
By Friday on the London Bullion Market, gold slid to 1,084 dollars an ounce, from 1,128 dollars the previous week.
Silver dived to 17.28 dollars an ounce from 18.52 dollars.
On the London Platinum and Palladium Market, platinum decreased to 1,540 dollars an ounce from 1,600 dollars.
Palladium fell to 432 dollars an ounce from 449 dollars.
BASE METALS: Base metals mostly fell on concerns about Asian powerhouse economy China.
By Friday on the London Metal Exchange, copper for delivery in three months dived to 7,257 dollars a tonne from 7,430 dollars the previous week.
Three-month aluminium slid to 2,215 dollars a tonne from 2,317 dollars.
Three-month lead recoiled to 2,255 dollars a tonne from 2,460 dollars.
Three-month tin decreased to 17,650 dollars a tonne from 18,125 dollars.
Three-month zinc dipped to 2,322 dollars a tonne from 2,472 dollars.
Three-month nickel rose slightly to 18,350 dollars a tonne from 18,302 dollars.
SUGAR: Sugar prices hit their best level for 29 years on both sides of the Atlantic.
In New York, unrefined sugar reached 29.82 US cents a pound, the highest point since 1981. The London market struck a similar peak at 767 pounds per tonne.
By Friday on the New York Board of Trade (NYBOT), the price
of unrefined sugar for March rose to 28.68 US cents a pound from 27.46 cents the previous week.
On LIFFE, London's futures exchange, the price of a tonne of white sugar for delivery in March gained to 741.90 pounds from 719.20 pounds.
COCOA: Prices surged to their highest level for more than 30 years on worries about lower output from top producer Ivory Coast.
In London, cocoa prices struck 2,356 pounds a tonne-which was last seen back in 1977.
By Friday on LIFFE, the price of cocoa for delivery in March rose to 2,320 pounds a tonne from 2,297 pounds the previous week.
On the NYBOT, the March cocoa contract eased to 3,380 dollars a tonne from 3,397 dollars.
COFFEE: Coffee prices went off the boil, falling as the US dollar strengthened.
By Friday on LIFFE, Robusta for delivery in March dipped to 1,330 dollars a tonne from 1,375 dollars the previous week.
On the NYBOT, Arabica for March fell to 137.55 US cents a pound from 140.90 cents.
GRAINS AND SOYA: Grains and soya prices dipped on news of robust supplies in key producer the United States.
By Friday on the Chicago Board of Trade, maize for delivery in March fell to 3.69 dollars a bushel from 3.71 dollars the previous week.
March-dated soyabean meal-used in animal feed-sank to 9.52 dollars from 9.74 dollars.
Wheat for March declined to 4.98 dollars a bushel from 5.10 dollars.
RUBBER: Prices edged higher due to strong demand from major consuming country China amid tight supplies, dealers said. On Friday, the Malaysian Rubber Board's benchmark SMR20 climbed to 304.10 US cents a kilo from 303.60 cents the previous week.
However, sugar rocketed to a 29-year peak and cocoa forged a 33-year pinnacle as both were pushed higher by keen demand and tightening supplies.
China's red-hot economy expanded by 8.7 per cent in 2009, well exceeding the government's target of 8.0 per cent, new data showed Thursday as authorities intervened to avert the risk of overheating.
Gross domestic product in the world's third-largest economy, which analysts say is on track to overtake Japan, returned to double-digit growth in the fourth quarter. The growth of 10.7 per cent was the fastest in two years.
The chairman of the China Banking Regulatory Commission said in Hong Kong Wednesday that new bank loans in the country this year would fall to about 7.5 trillion yuan (1.1 trillion US dollars) from about 9.5 trillion yuan in 2009.
Analysts have said the policy was likely a response to concerns about asset bubbles, bad loans and an overheating economy.
OIL: World oil prices slumped against a background of weak global demand for energy, led by China and the United States-which are the world's two biggest consumers of crude.
Oil had closed down almost 1.50 dollars lower on Wednesday amid market concerns that a credit squeeze in China and swelling US stockpiles could dampen demand for the key commodity, traders said.
The market was also dampened as US President Barack Obama unveiled plans to crack down on the US financial sector on Thursday.
Oil prices jumped by about 80 per cent in 2009 as traders were heartened by evidence that the battered global economy was on the mend, with the eurozone, Japan and the United States escaping a fierce recession.
London's Brent North Sea crude for March delivery slumped to 73.52 dollars from 77.55 dollars a week earlier.
PRECIOUS METALS: Prices sank on the back of China concerns and the stronger dollar, and amid fears about soaring Greek public debt.
On Thursday, the euro had stuck a six-month low against the dollar as worries that China will cool its booming economy curbed demand for risk- sensitive currencies.
By Friday on the London Bullion Market, gold slid to 1,084 dollars an ounce, from 1,128 dollars the previous week.
Silver dived to 17.28 dollars an ounce from 18.52 dollars.
On the London Platinum and Palladium Market, platinum decreased to 1,540 dollars an ounce from 1,600 dollars.
Palladium fell to 432 dollars an ounce from 449 dollars.
BASE METALS: Base metals mostly fell on concerns about Asian powerhouse economy China.
By Friday on the London Metal Exchange, copper for delivery in three months dived to 7,257 dollars a tonne from 7,430 dollars the previous week.
Three-month aluminium slid to 2,215 dollars a tonne from 2,317 dollars.
Three-month lead recoiled to 2,255 dollars a tonne from 2,460 dollars.
Three-month tin decreased to 17,650 dollars a tonne from 18,125 dollars.
Three-month zinc dipped to 2,322 dollars a tonne from 2,472 dollars.
Three-month nickel rose slightly to 18,350 dollars a tonne from 18,302 dollars.
SUGAR: Sugar prices hit their best level for 29 years on both sides of the Atlantic.
In New York, unrefined sugar reached 29.82 US cents a pound, the highest point since 1981. The London market struck a similar peak at 767 pounds per tonne.
By Friday on the New York Board of Trade (NYBOT), the price
of unrefined sugar for March rose to 28.68 US cents a pound from 27.46 cents the previous week.
On LIFFE, London's futures exchange, the price of a tonne of white sugar for delivery in March gained to 741.90 pounds from 719.20 pounds.
COCOA: Prices surged to their highest level for more than 30 years on worries about lower output from top producer Ivory Coast.
In London, cocoa prices struck 2,356 pounds a tonne-which was last seen back in 1977.
By Friday on LIFFE, the price of cocoa for delivery in March rose to 2,320 pounds a tonne from 2,297 pounds the previous week.
On the NYBOT, the March cocoa contract eased to 3,380 dollars a tonne from 3,397 dollars.
COFFEE: Coffee prices went off the boil, falling as the US dollar strengthened.
By Friday on LIFFE, Robusta for delivery in March dipped to 1,330 dollars a tonne from 1,375 dollars the previous week.
On the NYBOT, Arabica for March fell to 137.55 US cents a pound from 140.90 cents.
GRAINS AND SOYA: Grains and soya prices dipped on news of robust supplies in key producer the United States.
By Friday on the Chicago Board of Trade, maize for delivery in March fell to 3.69 dollars a bushel from 3.71 dollars the previous week.
March-dated soyabean meal-used in animal feed-sank to 9.52 dollars from 9.74 dollars.
Wheat for March declined to 4.98 dollars a bushel from 5.10 dollars.
RUBBER: Prices edged higher due to strong demand from major consuming country China amid tight supplies, dealers said. On Friday, the Malaysian Rubber Board's benchmark SMR20 climbed to 304.10 US cents a kilo from 303.60 cents the previous week.