Commodity prices mixed amid unclear demand outlook
Sunday, 14 March 2010
LONDON, March 13 (AFP): Commodity prices diverged this week as traders reacted to a mixed demand outlook for raw materials.
OIL: World oil prices rose this week as traders eyed demand concerns, the US dollar and hopes of global economic recovery.
Crude oil began the week with slender gains on Monday as the euphoria faded from upbeat US jobs data that had boosted prices the previous week.
The market then drifted lower on Tuesday, under pressure from a stronger greenback, which makes dollar-priced oil more expensive for buyers using weaker currencies, and tends to dent demand.
But prices rose Wednesday after news of a drop in crude oil and distillate stockpiles in the United States that suggested stronger demand in the world's largest energy consumer as it emerges from recession.
Strong economic data from China, the number-two energy consumer, also lifted the market after the Asian powerhouse revealed surging exports.
But oil prices ended mixed on Thursday as the market weighed prospects for global economic recovery ahead of next week's production meeting of the Organisation of Petroleum Exporting Countries (OPEC).
OPEC ministers were widely expected to leave production quotas unchanged at the gathering on March 17.
Emerging markets are driving growth of world oil demand this year with a big boost from China, despite a fall in advanced economies, the International Energy Agency said on Friday.
The IEA warned that demand for oil, a strong indicator of economic activity, would not recover in advanced economies overall this year, but was signalling an "astonishing" growth trend of 28 per cent in China.
By late Friday on the New York Mercantile Exchange (NYMEX), Texas light sweet crude for delivery in April was up at 82.42 dollars from 81.86 dollars a week earlier.
Brent North Sea crude for April rose to 80.56 dollars from 80.33 dollars on London's IntercontinentalExchange (ICE).
BASE METALS: Copper prices retreated on fears of a drop in Chinese demand.
Prices had jumped the previous week on better-than-expected US jobs data and following a massive earthquake in Chile, the world's largest producer of copper.
This week all eyes were on Chinese data showing consumer prices in China rose for the fourth month running in February and a sharp slowdown in new lending.
Analysts said the jump in inflation would not trigger a knee- jerk response from policymakers in the world's third- largest economy but the figures raised the prospect of more drastic tightening measures later in the year.
By Friday on the London Metal Exchange, copper for delivery in three months fell to 7,493 dollars a tonne from 7,600 dollars the previous week.
Three-month aluminium dropped to 2,243 dollars a tonne from 2,258 dollars.
Three-month lead rose to 2,280 dollars a tonne from 2,260 dollars.
Three-month tin grew to 17,600 dollars a tonne from 17,524 dollars.
Three-month dipped to 2,355 dollars a tonne from 2,356 dollars.
Three-month nickel slid to 21,749 dollars a tonne from 22,750 dollars.
PRECIOUS METALS: Palladium was the star performer among precious metals, hitting a two-year high of 480 dollars an ounce, before ending the week lower on profit-taking.
The metal was boosted by strong vehicle sales in China.
Palladium is used to make catalytic converters.
The data "bodes well for... especially palladium, which is more commonly used as an autocatalyst in China," said Barclays Capital analyst Natalya Naqvi.
By Friday on the London Bullion Market, gold fell to 1,106.25 dollars an ounce from 1,135 dollars the previous week.
Silver rose to 17.31 dollars an ounce from 17.25 dollars.
On the London Platinum and Palladium Market, platinum jumped to 1,619 dollars an ounce from 1,578 dollars.
Palladium dipped to 464 dollars an ounce from 466 dollars.
SUGAR: Prices fell further, extending recent losses after hitting a 33-year high at the start of the month. "Sugar market sentiment remains fragile and prices vulnerable," said Barclays Capital analyst Sudakshina Unnikrishnan.
By Friday on the New York Board of Trade (NYBOT), the price of unrefined sugar for delivery in May dropped to 19.61 US cents a pound from 21.79 cents the previous week.
On LIFFE, London's futures exchange, the price of a tonne of white sugar for May slid to 541.70 pounds from 600 pounds.
COCOA: Cocoa prices recovered after recently volatility amid unrest in top producer Ivory Coast.
By Friday on LIFFE, the price of cocoa for delivery in May rose to 2,192 pounds a tonne from 2,172 pounds the previous week.
On the NYBOT, the May cocoa contract grew to 2,859 dollars a tonne from 2,836 dollars.
COFFEE: Coffee prices struck a three-year low in London of 1,214 dollars a tonne on Tuesday on expectations of a stronger- than-expected harvest in Brazil.
By Friday on LIFFE, Robusta for delivery in May dropped to 1,239 dollars a tonne from 1,251 dollars the previous week.
On the NYBOT, Arabica for May climbed to 134.40 US cents a pound from 130.50 cents.
GRAINS AND SOYA: Grains and soya prices retreated.
"Soybeans came under pressure after news of the cancellation of a cargo of US soybeans by Chinese buyers, piquing fears of easing demand in the world's largest consumer," said Barclays Capital analyst Sudakshina Unnikrishnan.
By Friday on the Chicago Board of Trade, maize for delivery in May fell to 3.63 dollars a bushel from 3.76 dollars the previous week.
May-dated soyabean meal-used in animal feed-dropped to 9.30 dollars from 9.42 dollars.
Wheat for May was down to 4.80 dollars a bushel from 4.93 dollars.
RUBBER: Malaysian rubber prices rose amid strong demand from Japan, the world's second largest economy, traders said.
On Friday, the Malaysian Rubber Board's benchmark SMR20 rose to 318.35 US cents a kilo from 313.25 cents a week earlier.
OIL: World oil prices rose this week as traders eyed demand concerns, the US dollar and hopes of global economic recovery.
Crude oil began the week with slender gains on Monday as the euphoria faded from upbeat US jobs data that had boosted prices the previous week.
The market then drifted lower on Tuesday, under pressure from a stronger greenback, which makes dollar-priced oil more expensive for buyers using weaker currencies, and tends to dent demand.
But prices rose Wednesday after news of a drop in crude oil and distillate stockpiles in the United States that suggested stronger demand in the world's largest energy consumer as it emerges from recession.
Strong economic data from China, the number-two energy consumer, also lifted the market after the Asian powerhouse revealed surging exports.
But oil prices ended mixed on Thursday as the market weighed prospects for global economic recovery ahead of next week's production meeting of the Organisation of Petroleum Exporting Countries (OPEC).
OPEC ministers were widely expected to leave production quotas unchanged at the gathering on March 17.
Emerging markets are driving growth of world oil demand this year with a big boost from China, despite a fall in advanced economies, the International Energy Agency said on Friday.
The IEA warned that demand for oil, a strong indicator of economic activity, would not recover in advanced economies overall this year, but was signalling an "astonishing" growth trend of 28 per cent in China.
By late Friday on the New York Mercantile Exchange (NYMEX), Texas light sweet crude for delivery in April was up at 82.42 dollars from 81.86 dollars a week earlier.
Brent North Sea crude for April rose to 80.56 dollars from 80.33 dollars on London's IntercontinentalExchange (ICE).
BASE METALS: Copper prices retreated on fears of a drop in Chinese demand.
Prices had jumped the previous week on better-than-expected US jobs data and following a massive earthquake in Chile, the world's largest producer of copper.
This week all eyes were on Chinese data showing consumer prices in China rose for the fourth month running in February and a sharp slowdown in new lending.
Analysts said the jump in inflation would not trigger a knee- jerk response from policymakers in the world's third- largest economy but the figures raised the prospect of more drastic tightening measures later in the year.
By Friday on the London Metal Exchange, copper for delivery in three months fell to 7,493 dollars a tonne from 7,600 dollars the previous week.
Three-month aluminium dropped to 2,243 dollars a tonne from 2,258 dollars.
Three-month lead rose to 2,280 dollars a tonne from 2,260 dollars.
Three-month tin grew to 17,600 dollars a tonne from 17,524 dollars.
Three-month dipped to 2,355 dollars a tonne from 2,356 dollars.
Three-month nickel slid to 21,749 dollars a tonne from 22,750 dollars.
PRECIOUS METALS: Palladium was the star performer among precious metals, hitting a two-year high of 480 dollars an ounce, before ending the week lower on profit-taking.
The metal was boosted by strong vehicle sales in China.
Palladium is used to make catalytic converters.
The data "bodes well for... especially palladium, which is more commonly used as an autocatalyst in China," said Barclays Capital analyst Natalya Naqvi.
By Friday on the London Bullion Market, gold fell to 1,106.25 dollars an ounce from 1,135 dollars the previous week.
Silver rose to 17.31 dollars an ounce from 17.25 dollars.
On the London Platinum and Palladium Market, platinum jumped to 1,619 dollars an ounce from 1,578 dollars.
Palladium dipped to 464 dollars an ounce from 466 dollars.
SUGAR: Prices fell further, extending recent losses after hitting a 33-year high at the start of the month. "Sugar market sentiment remains fragile and prices vulnerable," said Barclays Capital analyst Sudakshina Unnikrishnan.
By Friday on the New York Board of Trade (NYBOT), the price of unrefined sugar for delivery in May dropped to 19.61 US cents a pound from 21.79 cents the previous week.
On LIFFE, London's futures exchange, the price of a tonne of white sugar for May slid to 541.70 pounds from 600 pounds.
COCOA: Cocoa prices recovered after recently volatility amid unrest in top producer Ivory Coast.
By Friday on LIFFE, the price of cocoa for delivery in May rose to 2,192 pounds a tonne from 2,172 pounds the previous week.
On the NYBOT, the May cocoa contract grew to 2,859 dollars a tonne from 2,836 dollars.
COFFEE: Coffee prices struck a three-year low in London of 1,214 dollars a tonne on Tuesday on expectations of a stronger- than-expected harvest in Brazil.
By Friday on LIFFE, Robusta for delivery in May dropped to 1,239 dollars a tonne from 1,251 dollars the previous week.
On the NYBOT, Arabica for May climbed to 134.40 US cents a pound from 130.50 cents.
GRAINS AND SOYA: Grains and soya prices retreated.
"Soybeans came under pressure after news of the cancellation of a cargo of US soybeans by Chinese buyers, piquing fears of easing demand in the world's largest consumer," said Barclays Capital analyst Sudakshina Unnikrishnan.
By Friday on the Chicago Board of Trade, maize for delivery in May fell to 3.63 dollars a bushel from 3.76 dollars the previous week.
May-dated soyabean meal-used in animal feed-dropped to 9.30 dollars from 9.42 dollars.
Wheat for May was down to 4.80 dollars a bushel from 4.93 dollars.
RUBBER: Malaysian rubber prices rose amid strong demand from Japan, the world's second largest economy, traders said.
On Friday, the Malaysian Rubber Board's benchmark SMR20 rose to 318.35 US cents a kilo from 313.25 cents a week earlier.