Crude oil, cocoa, lead prices surge higher
Sunday, 1 July 2007
LONDON, June 30 (AFP): World oil prices hit ten-month peaks this week on US supply woes, while cocoa soared as investors reacted to unrest in major producer Ivory Coast.
Lead prices, which were lifted by low global inventories, rocketed to a fresh record high above the price for the traditionally more expensive base metal aluminium.
OIL: World oil prices rallied, with New York crude trading above 70 dollars a barrel for the first time since late August 2006 on supply concerns in the United States, the world's biggest consumer of energy.
On Friday, New York crude struck 70.75 dollars-the highest level since August 28.
Crude prices had closed more than a dollar higher Wednesday after the US Department of Energy (DoE) reported that American gasoline (petrol) stockpiles fell by 700,000 barrels to 202.6 million barrels in the week ending June 22.
World oil prices had begun the week lower, as traders expressed relief at the end of a general strike in Nigeria that had threatened exports from the sixth-biggest crude producer in the world.
Brent North Sea crude for August delivery rose to 71.00 dollars a barrel Friday, from 70.96 dollars a barrel a week earlier.
New York's main oil futures contract, light sweet crude for delivery in August, climbed to 70.25 dollars a barrel, from 69.20 dollars a barrel.
GOLD: The price of gold touched a three-month low of 639.50 dollars an ounce Tuesday-a level last seen on March 14.
Rising oil prices meanwhile failed to boost gold, which normally benefits because the precious metal is seen as a safe store of value in times of high inflation.
On the London Bullion Market, gold dropped to 650.50 dollars an ounce at Friday's late fixing, from 652.85 dollars a week earlier.
SILVER: Silver prices shed almost 5.0 per cent in value, mirroring gold's losses. The metal sank as low as 12.13 dollars per ounce Tuesday, marking the lowest point since early January.
Silver is both a precious and an industrial metal, used in the production of jewellery, and in the photographic and dentistry sectors.
On the London Bullion Market, silver slid to 12.54 dollars an ounce at Friday's late fixing, from 13.15 dollars a week earlier.
PALLADIUM AND PLATINUM: The sister metals both fell in the wake of gold and silver, but losses were capped by looming industrial action in key producer South Africa.
On the London Platinum and Palladium Market, platinum fell to 1,273 dollars an ounce at the late fixing Friday, from 1,301 dollars a week earlier.
Palladium sank to 365 dollars an ounce, from 375 dollars.
BASE METALS: Lead prices surged to another historic peak.
Lead, which is used extensively for batteries and in the automotive industry, hit a record 2,745 dollars per tonne Tuesday.
Surprisingly, the metal is now more expensive than aluminium.
The prices of copper, meanwhile, advanced owing to a series of copper strikes in key producers Peru, Chile and Canada.
COCOA: Cocoa prices leapt to four-year peaks after an attack on the plane of Ivory Coast Prime Minister Guillaume Soro, seen as a heavy blow to the divided country's fragile peace process.
Ivory Coast is the world's biggest producer of cocoa for the global chocolate industry. The west African nation produces 40 per cent of the world's cocoa, which makes up 35 per cent of Ivorian exports.
London cocoa prices surged Friday to 1,118 pounds per tonne-last seen September 2003 -- while New York cocoa hit a four-and-a-half year high of 2,066 dollars per tonne.
COFFEE: Coffee prices fell as investors took profits after the market hit a nine-year peak in London the previous week.
However, despite the modest losses, Sucden analyst Michael Davies noted that the market remained "well supported."
In recent weeks, London coffee prices have surged amid market worries over lower exports from Vietnam, which is the world's second- biggest coffee producer after Brazil.
GRAINS AND SOYA: Grains and soya prices saw mixed fortunes, while next week the focus was expected to fall on weather conditions in major producing nations.
By Friday on the Chicago Board of Trade, the price of maize for September delivery sank to 3.41 dollars a bushel, from 3.76 dollars a week earlier.
Wheat for September delivery rose to 6.29 dollars a bushel, from 6.05 dollars.
SUGAR: Sugar prices were firm after recent losses that were triggered by an abundance of sugar, traders said.
According to Davies, the market found some support from a wave of speculative buying.
By Friday on the LIFFE, the price per tonne of white sugar for August delivery stood at 320.50 dollars, from 319.40 dollars a week earlier.
RUBBER: The price of rubber dropped on improved supplies from key producing countries.
"The reasons are mainly due to the raw material coming in, since the weather is good so there is improved supply of raw material from Thailand and Vietnam," said an official with a rubber producing company.
On Friday, the Malaysian Rubber Board's benchmark SMR20 fell to 208.38 US cents per kilogramme, compared with 213.08 US cents last week.
WOOL: The price of wool extended losses in major producer Australia.
The Australian wool market finished the week 2.9-per cent lower on average, with the Eastern Index closing at 9.31 Australian dollars a kilogramme.
Lead prices, which were lifted by low global inventories, rocketed to a fresh record high above the price for the traditionally more expensive base metal aluminium.
OIL: World oil prices rallied, with New York crude trading above 70 dollars a barrel for the first time since late August 2006 on supply concerns in the United States, the world's biggest consumer of energy.
On Friday, New York crude struck 70.75 dollars-the highest level since August 28.
Crude prices had closed more than a dollar higher Wednesday after the US Department of Energy (DoE) reported that American gasoline (petrol) stockpiles fell by 700,000 barrels to 202.6 million barrels in the week ending June 22.
World oil prices had begun the week lower, as traders expressed relief at the end of a general strike in Nigeria that had threatened exports from the sixth-biggest crude producer in the world.
Brent North Sea crude for August delivery rose to 71.00 dollars a barrel Friday, from 70.96 dollars a barrel a week earlier.
New York's main oil futures contract, light sweet crude for delivery in August, climbed to 70.25 dollars a barrel, from 69.20 dollars a barrel.
GOLD: The price of gold touched a three-month low of 639.50 dollars an ounce Tuesday-a level last seen on March 14.
Rising oil prices meanwhile failed to boost gold, which normally benefits because the precious metal is seen as a safe store of value in times of high inflation.
On the London Bullion Market, gold dropped to 650.50 dollars an ounce at Friday's late fixing, from 652.85 dollars a week earlier.
SILVER: Silver prices shed almost 5.0 per cent in value, mirroring gold's losses. The metal sank as low as 12.13 dollars per ounce Tuesday, marking the lowest point since early January.
Silver is both a precious and an industrial metal, used in the production of jewellery, and in the photographic and dentistry sectors.
On the London Bullion Market, silver slid to 12.54 dollars an ounce at Friday's late fixing, from 13.15 dollars a week earlier.
PALLADIUM AND PLATINUM: The sister metals both fell in the wake of gold and silver, but losses were capped by looming industrial action in key producer South Africa.
On the London Platinum and Palladium Market, platinum fell to 1,273 dollars an ounce at the late fixing Friday, from 1,301 dollars a week earlier.
Palladium sank to 365 dollars an ounce, from 375 dollars.
BASE METALS: Lead prices surged to another historic peak.
Lead, which is used extensively for batteries and in the automotive industry, hit a record 2,745 dollars per tonne Tuesday.
Surprisingly, the metal is now more expensive than aluminium.
The prices of copper, meanwhile, advanced owing to a series of copper strikes in key producers Peru, Chile and Canada.
COCOA: Cocoa prices leapt to four-year peaks after an attack on the plane of Ivory Coast Prime Minister Guillaume Soro, seen as a heavy blow to the divided country's fragile peace process.
Ivory Coast is the world's biggest producer of cocoa for the global chocolate industry. The west African nation produces 40 per cent of the world's cocoa, which makes up 35 per cent of Ivorian exports.
London cocoa prices surged Friday to 1,118 pounds per tonne-last seen September 2003 -- while New York cocoa hit a four-and-a-half year high of 2,066 dollars per tonne.
COFFEE: Coffee prices fell as investors took profits after the market hit a nine-year peak in London the previous week.
However, despite the modest losses, Sucden analyst Michael Davies noted that the market remained "well supported."
In recent weeks, London coffee prices have surged amid market worries over lower exports from Vietnam, which is the world's second- biggest coffee producer after Brazil.
GRAINS AND SOYA: Grains and soya prices saw mixed fortunes, while next week the focus was expected to fall on weather conditions in major producing nations.
By Friday on the Chicago Board of Trade, the price of maize for September delivery sank to 3.41 dollars a bushel, from 3.76 dollars a week earlier.
Wheat for September delivery rose to 6.29 dollars a bushel, from 6.05 dollars.
SUGAR: Sugar prices were firm after recent losses that were triggered by an abundance of sugar, traders said.
According to Davies, the market found some support from a wave of speculative buying.
By Friday on the LIFFE, the price per tonne of white sugar for August delivery stood at 320.50 dollars, from 319.40 dollars a week earlier.
RUBBER: The price of rubber dropped on improved supplies from key producing countries.
"The reasons are mainly due to the raw material coming in, since the weather is good so there is improved supply of raw material from Thailand and Vietnam," said an official with a rubber producing company.
On Friday, the Malaysian Rubber Board's benchmark SMR20 fell to 208.38 US cents per kilogramme, compared with 213.08 US cents last week.
WOOL: The price of wool extended losses in major producer Australia.
The Australian wool market finished the week 2.9-per cent lower on average, with the Eastern Index closing at 9.31 Australian dollars a kilogramme.