Commodity prices mixed amid signs of US recovery
Sunday, 3 May 2009
LONDON, May 2 (AFP): Commodity prices traded mixed this week as the market reacted to signs of a tentative recovery in the recession-battered US economy, while the world also faced the threat of a swine flu pandemic.
"The energy and base metal commodity sectors appear to have completed short lived corrections lower and are now well placed to re-attempt" a rebound, said Dresdner Kleinwort analyst Karen Jones.
The US manufacturing sector contracted in April for a 15th consecutive month but the pace of decline was less severe than expected, the Institute of Supply Management said Friday.
Elsewhere, new claims for US unemployment benefits fell far more than expected in the past week, government data showed Thursday.
It came a day after official data showed the US economy suffered another horrific quarter with a massive 6.1 per cent output decline, but some analysts said the data offered hope that the worst is over for the economy.
The Commerce Department's estimate of gross domestic product (GDP) in the first quarter was worse than the 4.7 per cent annualized decline expected by private economists and only marginally better than the 6.3 per cent fourth- quarter slide.
OIL: Oil prices steadied over the week after a brief tumble under 50 dollars a barrel on fears that the swine flu crisis could further dampen economic activity and drain energy demand.
The outbreak that began in Mexico has stoked fears of a potential epidemic that could impact travel and tourism and overall economic activity as the world struggles to emerge from recession.
PRECIOUS METALS: Precious metals prices fell across the board.
"Gold has failed to attract further safe haven buying in recent sessions, and although physical demand emerging upon dips should limit the downside in the near term, a lack of fresh investor interest is likely to stem upward momentum," said analysts at Barclays Capital.
Gold had won support early in the week, benefiting from its status as a safe haven in troubled times, as news of the flu outbreak spread.
Silver dropped to 12.15 dollars an ounce from 12.78 dollars. On the London Platinum and Palladium Market, platinum declined to 1,076 dollars an ounce at the late fixing on Friday from 1,175 dollars. Palladium retreated to 212 dollars an ounce from 233 dollars.
BASE METALS: Base metals prices mostly rallied, overcoming losses early in the week on fears caused by the swine flu outbreak.
By Friday on the London Metal Exchange, copper for delivery in three months climbed to 4,515 dollars a tonne from 4,374 dollars the previous week. Three-month aluminium jumped to 1,518 dollars a tonne from 1,445 dollars. Three-month lead dropped to 1,356 dollars a tonne from 1,415 dollars. Three-month tin advanced to 12,475 dollars a tonne from 12,350 dollars.
COCOA: Cocoa prices dropped. "The tone across the markets was down... not just on softs (commodities) but amongst the global financial markets as an air of anxiety spread around the world regarding the outbreaks of swine flu and its impact on the international effort being made to lift the world out of recession," said Sucden analyst Stephanie Garner.
By Friday on LIFFE, London's futures exchange, the price of cocoa for delivery in July fell to 1,703 pounds a tonne from 1,837 pounds the previous week.
COFFEE: Coffee prices retreated. By Friday on LIFFE, Robusta for delivery in July declined to 1,475 dollars a tonne from 1,491 dollars the previous week. On the NYBOT, Arabica for July retreated to 116.35 US cents a pound from 118.55 cents.
GRAINS AND SOYA: Grains and soya prices rose after heavy falls at the start of the week. By Friday on the Chicago Board of Trade, maize for delivery in July climbed to 4.07 dollars a bushel from 3.85 dollars the previous week. July-dated soyabean meal-used in animal feed-gained to 10.69 dollars from 10.34 dollars. Wheat for July advanced to 5.56 dollars a bushel from 5.43 dollars.
"The energy and base metal commodity sectors appear to have completed short lived corrections lower and are now well placed to re-attempt" a rebound, said Dresdner Kleinwort analyst Karen Jones.
The US manufacturing sector contracted in April for a 15th consecutive month but the pace of decline was less severe than expected, the Institute of Supply Management said Friday.
Elsewhere, new claims for US unemployment benefits fell far more than expected in the past week, government data showed Thursday.
It came a day after official data showed the US economy suffered another horrific quarter with a massive 6.1 per cent output decline, but some analysts said the data offered hope that the worst is over for the economy.
The Commerce Department's estimate of gross domestic product (GDP) in the first quarter was worse than the 4.7 per cent annualized decline expected by private economists and only marginally better than the 6.3 per cent fourth- quarter slide.
OIL: Oil prices steadied over the week after a brief tumble under 50 dollars a barrel on fears that the swine flu crisis could further dampen economic activity and drain energy demand.
The outbreak that began in Mexico has stoked fears of a potential epidemic that could impact travel and tourism and overall economic activity as the world struggles to emerge from recession.
PRECIOUS METALS: Precious metals prices fell across the board.
"Gold has failed to attract further safe haven buying in recent sessions, and although physical demand emerging upon dips should limit the downside in the near term, a lack of fresh investor interest is likely to stem upward momentum," said analysts at Barclays Capital.
Gold had won support early in the week, benefiting from its status as a safe haven in troubled times, as news of the flu outbreak spread.
Silver dropped to 12.15 dollars an ounce from 12.78 dollars. On the London Platinum and Palladium Market, platinum declined to 1,076 dollars an ounce at the late fixing on Friday from 1,175 dollars. Palladium retreated to 212 dollars an ounce from 233 dollars.
BASE METALS: Base metals prices mostly rallied, overcoming losses early in the week on fears caused by the swine flu outbreak.
By Friday on the London Metal Exchange, copper for delivery in three months climbed to 4,515 dollars a tonne from 4,374 dollars the previous week. Three-month aluminium jumped to 1,518 dollars a tonne from 1,445 dollars. Three-month lead dropped to 1,356 dollars a tonne from 1,415 dollars. Three-month tin advanced to 12,475 dollars a tonne from 12,350 dollars.
COCOA: Cocoa prices dropped. "The tone across the markets was down... not just on softs (commodities) but amongst the global financial markets as an air of anxiety spread around the world regarding the outbreaks of swine flu and its impact on the international effort being made to lift the world out of recession," said Sucden analyst Stephanie Garner.
By Friday on LIFFE, London's futures exchange, the price of cocoa for delivery in July fell to 1,703 pounds a tonne from 1,837 pounds the previous week.
COFFEE: Coffee prices retreated. By Friday on LIFFE, Robusta for delivery in July declined to 1,475 dollars a tonne from 1,491 dollars the previous week. On the NYBOT, Arabica for July retreated to 116.35 US cents a pound from 118.55 cents.
GRAINS AND SOYA: Grains and soya prices rose after heavy falls at the start of the week. By Friday on the Chicago Board of Trade, maize for delivery in July climbed to 4.07 dollars a bushel from 3.85 dollars the previous week. July-dated soyabean meal-used in animal feed-gained to 10.69 dollars from 10.34 dollars. Wheat for July advanced to 5.56 dollars a bushel from 5.43 dollars.