Commodity prices drop as demand concerns weigh
Sunday, 10 August 2008
LONDON, Aug 9 (AFP): World oil prices tumbled this week, in line with almost all commodities, on mounting concern that slower economic growth in the United States will translate into lower global demand for raw materials.
"Deteriorating sentiment over the demand outlook (for oil) in the US has taken precedence over concerns over supply risks for now," said Standard Chartered analyst Helen Henton.
OIL: Crude prices also slumped this week owing to a stronger dollar, and easing supply concerns despite an attack on a strategic pipeline bringing crude to the West from Asia.
The dollar struck a five-month high point against the euro Friday on fading prospects of an interest rate rise by the European Central Bank, dealers said.
A strong dollar makes goods priced in the US unit more expensive for holders of weaker currencies.
PRECIOUS METALS: Gold, silver and platinum prices increased recent losses as the dollar rallied.
On the London Bullion Market, gold dropped to 852.50 dollars per ounce at Friday's late fixing from 912.50 dollars a week earlier.
Silver fell to 15.76 dollars per ounce from 17.59 dollars.
On the London Platinum and Palladium Market, platinum decreased to 1,552 dollars per ounce at the late fixing Friday from 1,675 dollars.
Palladium stood at 345 dollars per ounce from 367 dollars.
BASE METALS: Base metals prices dropped across the board, with slowing economic growth around the world dampening demand.
"Generally there is little fresh news to drive the markets so they are being jostled by outside factors, mainly the dollar and oil," said William Adams of Basemetals.com. Three-month aluminium fell to 2,867 dollars per tonne from 2,929 dollars. Three-month lead slid to 1,994 dollars per tonne from 2,150 dollars. Three-month zinc slipped to 1,709 dollars per tonne from 1,850 dollars. Three-month tin decreased to 19,900 dollars per tonne from 21,525 dollars. Three-month nickel recoiled to 17,850 dollars per tonne from 18,750 dollars.
GRAINS AND SOYA: Maize and soyabean meal prices dropped, while wheat futures rose thanks to strong export sales.
Maize and soya are used to produce ethanol, a cheaper alternative to motor fuel.
By Friday on the Chicago Board of Trade, maize for September delivery tumbled to 5.05 dollars per bushel from 5.65 dollars the previous week.
November-dated soyabean meal-used in animal feed-retreated to 12.02 dollars from 13.65 dollars.
Wheat for August delivery rose to 8.03 dollars per bushel from 7.94 dollars.
COFFEE: Coffee prices dropped. "The London market resumed its seasonal lull," said Sucden analyst Ralph Hawes.
By Friday on LIFFE, Robusta for September delivery slipped to 2,346 dollars per tonne from 2,417 dollars a week earlier.
On the NYBOT, Arabica for September delivery decreased to 137.60 US cents per pound from 138.85 cents.
COCOA: Cocoa prices ended lower after a volatile week.
By Friday on LIFFE, London's futures exchange, the price of cocoa for September fell to 1,473 pounds per tonne from 1,592 pounds a week earlier.
On the New York Board of Trade (NYBOT), the September cocoa contract stood at 2,743 dollars per tonne from 2,965 dollars.
SUGAR: Sugar prices declined. By Friday on LIFFE, the price per tonne of white sugar for October delivery slipped to 393.20 pounds from 398 pounds the previous week.
On NYBOT, the price of unrefined sugar for October delivery retreated to 13.89 US cents per pound from 14.11 cents.
RUBBER: Malaysian rubber prices extended losses on lower demand after China-based companies cut production ahead of the Olympics, dealers said.
"The current price has been dropping for a month. It has not scratched the bottom yet," a dealer with an international commodities firm said.
"The low demand in raw materials is due to the summer (holiday) season in Europe and in the US. Factories in China have also reduced the use of the commodity as they slow down their production," he said.
On Friday, the Malaysian Rubber Board's benchmark SMR20 fell to 299.30 US cents per kilogramme (2.2 pounds) from 309.60 US cents a week ago.
"Deteriorating sentiment over the demand outlook (for oil) in the US has taken precedence over concerns over supply risks for now," said Standard Chartered analyst Helen Henton.
OIL: Crude prices also slumped this week owing to a stronger dollar, and easing supply concerns despite an attack on a strategic pipeline bringing crude to the West from Asia.
The dollar struck a five-month high point against the euro Friday on fading prospects of an interest rate rise by the European Central Bank, dealers said.
A strong dollar makes goods priced in the US unit more expensive for holders of weaker currencies.
PRECIOUS METALS: Gold, silver and platinum prices increased recent losses as the dollar rallied.
On the London Bullion Market, gold dropped to 852.50 dollars per ounce at Friday's late fixing from 912.50 dollars a week earlier.
Silver fell to 15.76 dollars per ounce from 17.59 dollars.
On the London Platinum and Palladium Market, platinum decreased to 1,552 dollars per ounce at the late fixing Friday from 1,675 dollars.
Palladium stood at 345 dollars per ounce from 367 dollars.
BASE METALS: Base metals prices dropped across the board, with slowing economic growth around the world dampening demand.
"Generally there is little fresh news to drive the markets so they are being jostled by outside factors, mainly the dollar and oil," said William Adams of Basemetals.com. Three-month aluminium fell to 2,867 dollars per tonne from 2,929 dollars. Three-month lead slid to 1,994 dollars per tonne from 2,150 dollars. Three-month zinc slipped to 1,709 dollars per tonne from 1,850 dollars. Three-month tin decreased to 19,900 dollars per tonne from 21,525 dollars. Three-month nickel recoiled to 17,850 dollars per tonne from 18,750 dollars.
GRAINS AND SOYA: Maize and soyabean meal prices dropped, while wheat futures rose thanks to strong export sales.
Maize and soya are used to produce ethanol, a cheaper alternative to motor fuel.
By Friday on the Chicago Board of Trade, maize for September delivery tumbled to 5.05 dollars per bushel from 5.65 dollars the previous week.
November-dated soyabean meal-used in animal feed-retreated to 12.02 dollars from 13.65 dollars.
Wheat for August delivery rose to 8.03 dollars per bushel from 7.94 dollars.
COFFEE: Coffee prices dropped. "The London market resumed its seasonal lull," said Sucden analyst Ralph Hawes.
By Friday on LIFFE, Robusta for September delivery slipped to 2,346 dollars per tonne from 2,417 dollars a week earlier.
On the NYBOT, Arabica for September delivery decreased to 137.60 US cents per pound from 138.85 cents.
COCOA: Cocoa prices ended lower after a volatile week.
By Friday on LIFFE, London's futures exchange, the price of cocoa for September fell to 1,473 pounds per tonne from 1,592 pounds a week earlier.
On the New York Board of Trade (NYBOT), the September cocoa contract stood at 2,743 dollars per tonne from 2,965 dollars.
SUGAR: Sugar prices declined. By Friday on LIFFE, the price per tonne of white sugar for October delivery slipped to 393.20 pounds from 398 pounds the previous week.
On NYBOT, the price of unrefined sugar for October delivery retreated to 13.89 US cents per pound from 14.11 cents.
RUBBER: Malaysian rubber prices extended losses on lower demand after China-based companies cut production ahead of the Olympics, dealers said.
"The current price has been dropping for a month. It has not scratched the bottom yet," a dealer with an international commodities firm said.
"The low demand in raw materials is due to the summer (holiday) season in Europe and in the US. Factories in China have also reduced the use of the commodity as they slow down their production," he said.
On Friday, the Malaysian Rubber Board's benchmark SMR20 fell to 299.30 US cents per kilogramme (2.2 pounds) from 309.60 US cents a week ago.