Commodity prices diverge amid economy woes
Sunday, 8 March 2009
LONDON, Mar 7 (AFP): Oil and gold prices endured a volatile week as investors reacted to mixed news on the Chinese economy, a massive consumer of commodities in recent years.
Traders brushed aside official data Friday showing the United States had shed 651,000 jobs in February amid a worsening recession in the key consumer of raw materials, as the data matched analyst forecasts.
OIL: Crude oil prices see-sawed between losses and gains as traders tracked the outlook for energy demand and the spreading global financial crisis.
Prices had plunged on Monday after more alarming news in the financial sector sent markets into a tailspin, amid fears of a deepening downward global economic spiral.
Crude oil futures then rebounded Tuesday as the market reconsidered worries about weak US energy demand.
Oil continued to bounce higher Wednesday on news of sliding American crude reserves, which indicated solid demand, traders said.
The US government's Energy Information Administration (EIA) said crude oil stockpiles sank 700,000 barrels in the week ending February 27. Market expectations had been for a gain of one million barrels.
PRECIOUS METALS: The price of gold steadied after sliding a week earlier. "The rise in US jobless claims, central bank rate cuts and absence of fresh Chinese stimulus plans ... acted as a reminder all is not well with the world's economies, triggering a rout in equity sentiment and renewed safe-haven demand into precious metals," said James Moore at thebulliondesk.com. The Bank of England and the European Central Bank (ECB) slashed interest rates to record lows on Thursday in a new attack on the raging and relentless global economic crisis.
In Frankfurt, the ECB hacked its eurozone base rate back by half a point to 1.50 per cent-its lowest level in the bank's 10-year history-and governor Jean-Claude Trichet said the rate could be cut even further.
By Friday on the London Bullion Market, gold stood at to 936 dollars an ounce at the late fixing, almost unchanged from 936.50 dollars reached a week earlier. Silver rose to 13.46 dollars an ounce from 13.21 dollars.
On the London Platinum and Palladium Market, platinum gained to 1,071 dollars an ounce at the late fixing on Friday from 1,059 dollars a week earlier. Palladium jumped to 202.50 dollars an ounce from 195 dollars.
BASE METALS: Base metals prices rallied, with copper hitting a near four- month high of 3,785 dollars a tonne.
By Friday, copper for delivery in three months jumped to 3,724 dollars a tonne on the London Metal Exchange from 3,420 dollars the previous week. Three-month aluminium rose to 1,338 dollars a tonne from 1,306 dollars. Three-month lead gained to 1,198 dollars a tonne from 1,029 dollars. Three-month tin increased to 11,200 dollars a tonne from 10,850 dollars. Three-month zinc climbed to 1,245 dollars a tonne from 1,111 dollars. Three-month nickel advanced to 9,900 dollars a tonne from 9,725 dollars.
COCOA: Cocoa prices retreated. By Friday on LIFFE, London's futures exchange, the price of cocoa for delivery in May fell to 1,804 pounds a tonne from 1,845 pounds a week earlier. On the New York Board of Trade (NYBOT), the May cocoa contract dropped to 2,264 dollars a tonne from 2,417 dollars.
COFFEE: Coffee prices slid. By Friday on LIFFE, Robusta for delivery in May retreated to 1,506 dollars a tonne from 1,551 dollars a week earlier. On the NYBOT, Arabica for May slipped to 108 US cents a pound from 111.75 cents.
GRAINS AND SOYA: Maize prices rose and soya fell as markets tracked movements in oil futures. Maize and soya are used to manufacture ethanol, a cheaper alternative to motor fuel.
By Friday on the Chicago Board of Trade, maize for delivery in May rose to 3.60 dollars a bushel from 3.59 dollars the previous week. May-dated soyabean meal-used in animal feed - - fell to 8.57 dollars from 8.72 dollars. Wheat for March was unchanged at 5.21 dollars a bushel.
SUGAR: Sugar prices headed south. By Friday on LIFFE, the price of a tonne of white sugar for delivery in May declined to 383 pounds from 399.90 pounds a week earlier.
On NYBOT, the price of unrefined sugar for May dropped to 12.90 US cents per pound from 13.78 cents.
RUBBER: Malaysian rubber prices dropped despite reports China would soon return to the market soon.
On Friday, the Malaysian Rubber Board's benchmark SMR20 fell to 134.50 US cents per kilogramme, from 137.00 cents the previous week.
Traders brushed aside official data Friday showing the United States had shed 651,000 jobs in February amid a worsening recession in the key consumer of raw materials, as the data matched analyst forecasts.
OIL: Crude oil prices see-sawed between losses and gains as traders tracked the outlook for energy demand and the spreading global financial crisis.
Prices had plunged on Monday after more alarming news in the financial sector sent markets into a tailspin, amid fears of a deepening downward global economic spiral.
Crude oil futures then rebounded Tuesday as the market reconsidered worries about weak US energy demand.
Oil continued to bounce higher Wednesday on news of sliding American crude reserves, which indicated solid demand, traders said.
The US government's Energy Information Administration (EIA) said crude oil stockpiles sank 700,000 barrels in the week ending February 27. Market expectations had been for a gain of one million barrels.
PRECIOUS METALS: The price of gold steadied after sliding a week earlier. "The rise in US jobless claims, central bank rate cuts and absence of fresh Chinese stimulus plans ... acted as a reminder all is not well with the world's economies, triggering a rout in equity sentiment and renewed safe-haven demand into precious metals," said James Moore at thebulliondesk.com. The Bank of England and the European Central Bank (ECB) slashed interest rates to record lows on Thursday in a new attack on the raging and relentless global economic crisis.
In Frankfurt, the ECB hacked its eurozone base rate back by half a point to 1.50 per cent-its lowest level in the bank's 10-year history-and governor Jean-Claude Trichet said the rate could be cut even further.
By Friday on the London Bullion Market, gold stood at to 936 dollars an ounce at the late fixing, almost unchanged from 936.50 dollars reached a week earlier. Silver rose to 13.46 dollars an ounce from 13.21 dollars.
On the London Platinum and Palladium Market, platinum gained to 1,071 dollars an ounce at the late fixing on Friday from 1,059 dollars a week earlier. Palladium jumped to 202.50 dollars an ounce from 195 dollars.
BASE METALS: Base metals prices rallied, with copper hitting a near four- month high of 3,785 dollars a tonne.
By Friday, copper for delivery in three months jumped to 3,724 dollars a tonne on the London Metal Exchange from 3,420 dollars the previous week. Three-month aluminium rose to 1,338 dollars a tonne from 1,306 dollars. Three-month lead gained to 1,198 dollars a tonne from 1,029 dollars. Three-month tin increased to 11,200 dollars a tonne from 10,850 dollars. Three-month zinc climbed to 1,245 dollars a tonne from 1,111 dollars. Three-month nickel advanced to 9,900 dollars a tonne from 9,725 dollars.
COCOA: Cocoa prices retreated. By Friday on LIFFE, London's futures exchange, the price of cocoa for delivery in May fell to 1,804 pounds a tonne from 1,845 pounds a week earlier. On the New York Board of Trade (NYBOT), the May cocoa contract dropped to 2,264 dollars a tonne from 2,417 dollars.
COFFEE: Coffee prices slid. By Friday on LIFFE, Robusta for delivery in May retreated to 1,506 dollars a tonne from 1,551 dollars a week earlier. On the NYBOT, Arabica for May slipped to 108 US cents a pound from 111.75 cents.
GRAINS AND SOYA: Maize prices rose and soya fell as markets tracked movements in oil futures. Maize and soya are used to manufacture ethanol, a cheaper alternative to motor fuel.
By Friday on the Chicago Board of Trade, maize for delivery in May rose to 3.60 dollars a bushel from 3.59 dollars the previous week. May-dated soyabean meal-used in animal feed - - fell to 8.57 dollars from 8.72 dollars. Wheat for March was unchanged at 5.21 dollars a bushel.
SUGAR: Sugar prices headed south. By Friday on LIFFE, the price of a tonne of white sugar for delivery in May declined to 383 pounds from 399.90 pounds a week earlier.
On NYBOT, the price of unrefined sugar for May dropped to 12.90 US cents per pound from 13.78 cents.
RUBBER: Malaysian rubber prices dropped despite reports China would soon return to the market soon.
On Friday, the Malaysian Rubber Board's benchmark SMR20 fell to 134.50 US cents per kilogramme, from 137.00 cents the previous week.