Commodity prices enjoy mixed fortunes
Sunday, 19 April 2009
LONDON, Apr 18 (AFP): Commodity markets diverged this week as traders reacted to mixed economic data in China and the United States, which both consume vast amounts of most raw materials.
Many dollar-priced commodities were dented by the stronger US currency which makes them more expensive for foreign buyers and tends to dampen demand.
Investors "received mixed signals over the status of the world economy," said JBC Energy analysts.
OIL: World oil prices drifted within a tight range as traders focused on weak energy demand and high US crude stocks in a slowing global economy.
Prices found some support from better-than expected US company results, rising Wall Street shares and hopes for a rebound in the struggling American economy.
The US government's Department of Energy said Wednesday that crude stocks surged 5.6 million barrels in the week ending April 10 to reach 366.7 million barrels, which was the highest level since September 1990.
Oil prices slid Monday after the IEA slashed its 2009 global forecast by one million barrels per day (bpd) to 83.4 million bpd, about 2.4 million bpd less than in 2008 and the lowest level since 2004.
The IEA also forecast that the global economy would contract 1.4 per cent in 2009 instead of a modest expansion.
In further gloomy news on Wednesday, OPEC cut its estimate for world crude demand again, arguing that a "devastating contraction" in consumption would keep prices under pressure in the months ahead.
PRECIOUS METALS: The price of gold dipped, dragging sister metal silver lower. Glamorous metal gold sank on Friday as low as 864.97 dollars per ounce, which was a level last seen on January 23.
"Gold sagged as further signs of investor and economic confidence emerged," said BullionDesk analyst James Moore.
The precious metal, used in jewellery, dentistry and electronics, tends to win support from economic uncertainty because it is regarded as a safe-haven.
By late Friday on the London Bullion Market, gold had fallen to 870.50 dollars an ounce from 881.65 dollars the previous week.
Silver slid to 11.98 dollars an ounce from 12.37 dollars. On the London Platinum and Palladium Market, platinum eased to 1,215 dollars an ounce at the late fixing on Friday from 1,212.25 dollars.
Palladium slid to 233 dollars an ounce from 235.25 dollars.
BASE METALS: Base metals prices mostly rose on the back of supportive Chinese data.
"China released a raft of economic data... offering a generally more positive picture of economic activity than expected, which can only be viewed as supportive to the base metals complex," said Barclays Capital analysts.
By Friday on the London Metal Exchange, copper for delivery in three months gained to 4,720 dollars a tonne from 4,496 dollars on Thursday of the previous week.
Three-month aluminium eased to 1,485 dollars a tonne from 1,489 dollars. Three-month lead jumped to 1,509 dollars a tonne from 1,355 dollars.
COCOA: Cocoa prices declined further, with London striking the lowest level since February as recession concerns sapped demand.
By Friday on LIFFE, London's futures exchange, the price of cocoa for delivery in May had fallen to 1,712 pounds a tonne from 1,824 pounds on Thursday of the previous week.
On the New York Board of Trade (NYBOT), the July cocoa contract sank to 2,354 dollars a tonne from 2,600 dollars.
COFFEE: Coffee prices weakened, hitting the lowest levels since March.
By Friday on LIFFE, Robusta for delivery in July retreated to 1,494 dollars a tonne from 1,557 dollars on Thursday of the previous week.
On the NYBOT, Arabica for May fell to 114.25 US cents a pound from 119.70 cents.
GRAINS AND SOYA: Soya prices rallied on solid Chinese demand but wheat was held back by rising supplies.
"Demand continues to be very strong on soybeans," said US Commodities Jason Roose.
By Friday on the Chicago Board of Trade, maize for delivery in May eased to 3.91 dollars a bushel from 3.99 dollars the previous week.
May-dated soyabean meal-used in animal feed-gained to 10.52 dollars from 10.02 dollars.
Wheat for May firmed to 5.36 dollars a bushel from 5.33 dollars.
SUGAR: Sugar prices edged higher. By Friday on LIFFE, the price of a tonne of white sugar for delivery in August firmed to 396.20 pounds from 394 pounds on Thursday of the previous week.
On NYBOT, the price of unrefined sugar for May increased to 13.48 US cents a pound from 12.62 cents.
RUBBER: Malaysian rubber prices rose due to tight supplies caused by heavy rains in some parts of the country, dealers said. On Friday, the Malaysian Rubber Board's benchmark SMR20 rose to 160.05 US cents per kilogramme, from 154.40 cents last week.
Many dollar-priced commodities were dented by the stronger US currency which makes them more expensive for foreign buyers and tends to dampen demand.
Investors "received mixed signals over the status of the world economy," said JBC Energy analysts.
OIL: World oil prices drifted within a tight range as traders focused on weak energy demand and high US crude stocks in a slowing global economy.
Prices found some support from better-than expected US company results, rising Wall Street shares and hopes for a rebound in the struggling American economy.
The US government's Department of Energy said Wednesday that crude stocks surged 5.6 million barrels in the week ending April 10 to reach 366.7 million barrels, which was the highest level since September 1990.
Oil prices slid Monday after the IEA slashed its 2009 global forecast by one million barrels per day (bpd) to 83.4 million bpd, about 2.4 million bpd less than in 2008 and the lowest level since 2004.
The IEA also forecast that the global economy would contract 1.4 per cent in 2009 instead of a modest expansion.
In further gloomy news on Wednesday, OPEC cut its estimate for world crude demand again, arguing that a "devastating contraction" in consumption would keep prices under pressure in the months ahead.
PRECIOUS METALS: The price of gold dipped, dragging sister metal silver lower. Glamorous metal gold sank on Friday as low as 864.97 dollars per ounce, which was a level last seen on January 23.
"Gold sagged as further signs of investor and economic confidence emerged," said BullionDesk analyst James Moore.
The precious metal, used in jewellery, dentistry and electronics, tends to win support from economic uncertainty because it is regarded as a safe-haven.
By late Friday on the London Bullion Market, gold had fallen to 870.50 dollars an ounce from 881.65 dollars the previous week.
Silver slid to 11.98 dollars an ounce from 12.37 dollars. On the London Platinum and Palladium Market, platinum eased to 1,215 dollars an ounce at the late fixing on Friday from 1,212.25 dollars.
Palladium slid to 233 dollars an ounce from 235.25 dollars.
BASE METALS: Base metals prices mostly rose on the back of supportive Chinese data.
"China released a raft of economic data... offering a generally more positive picture of economic activity than expected, which can only be viewed as supportive to the base metals complex," said Barclays Capital analysts.
By Friday on the London Metal Exchange, copper for delivery in three months gained to 4,720 dollars a tonne from 4,496 dollars on Thursday of the previous week.
Three-month aluminium eased to 1,485 dollars a tonne from 1,489 dollars. Three-month lead jumped to 1,509 dollars a tonne from 1,355 dollars.
COCOA: Cocoa prices declined further, with London striking the lowest level since February as recession concerns sapped demand.
By Friday on LIFFE, London's futures exchange, the price of cocoa for delivery in May had fallen to 1,712 pounds a tonne from 1,824 pounds on Thursday of the previous week.
On the New York Board of Trade (NYBOT), the July cocoa contract sank to 2,354 dollars a tonne from 2,600 dollars.
COFFEE: Coffee prices weakened, hitting the lowest levels since March.
By Friday on LIFFE, Robusta for delivery in July retreated to 1,494 dollars a tonne from 1,557 dollars on Thursday of the previous week.
On the NYBOT, Arabica for May fell to 114.25 US cents a pound from 119.70 cents.
GRAINS AND SOYA: Soya prices rallied on solid Chinese demand but wheat was held back by rising supplies.
"Demand continues to be very strong on soybeans," said US Commodities Jason Roose.
By Friday on the Chicago Board of Trade, maize for delivery in May eased to 3.91 dollars a bushel from 3.99 dollars the previous week.
May-dated soyabean meal-used in animal feed-gained to 10.52 dollars from 10.02 dollars.
Wheat for May firmed to 5.36 dollars a bushel from 5.33 dollars.
SUGAR: Sugar prices edged higher. By Friday on LIFFE, the price of a tonne of white sugar for delivery in August firmed to 396.20 pounds from 394 pounds on Thursday of the previous week.
On NYBOT, the price of unrefined sugar for May increased to 13.48 US cents a pound from 12.62 cents.
RUBBER: Malaysian rubber prices rose due to tight supplies caused by heavy rains in some parts of the country, dealers said. On Friday, the Malaysian Rubber Board's benchmark SMR20 rose to 160.05 US cents per kilogramme, from 154.40 cents last week.