Gold prices fall from record heights
Sunday, 13 December 2009
LONDON, Dec 12 (AFP): Gold prices dropped further from recent record heights and crude oil futures tumbled this week but cocoa struck a 24-year peak in a mixed trading week for commodities amid a stronger dollar and debt fears.
PRECIOUS METALS: Gold prices extended losses after the precious metal had hit a record high of 1,226.56 dollars an ounce on December 3.
Gold prices fell "as a stronger dollar prompts profit- taking," said Barclays Capital analyst Suki Cooper.
The dollar won back some ground against the euro this week on growing concerns about Europe's mounting debt strains.
Greek Prime Minister George Papandreou Friday ruled out going cap in hand to the International Monetary Fund as a way out of his country's 300- billion-euro debt morass.
The beleaguered premier said it was "out of the question to resort to the IMF" after earlier stating in Brussels at a European Union summit that Greece-a member of the eurozone-was "not about to default on its debts."
Greece's sovereign debt was downgraded this week by the international ratings agency Fitch, prompting fears of dangerous divergence in the 16 countries that use the euro.
Gold prices had meanwhile smashed records in recent weeks on the back of inflationary fears and increasing moves by central banks to diversify assets away from the dollar. Gold is traditionally viewed as a safe-haven investment.
By late Friday on the London Bullion Market, gold dropped to 1,124 dollars an ounce from 1,190.25 dollars a week earlier.
Silver slid to 17.51 dollars an ounce from 18.83 dollars.
On the London Platinum and Palladium Market, platinum retreated to 1,429 dollars an ounce at the late fixing on Friday from 1,472 dollars the previous week.
Palladium fell to 367 dollars an ounce from 378 dollars.
OIL: Oil prices plunged under 70 dollars amid signs of weak energy demand in the United States.
World oil demand is set to firm slightly more than expected next year because economies, especially in emerging countries, are recovering but US consumption is "sluggish," the International Energy Agency said on Friday.
The global crisis has probably removed some demand permanently and energy-saving measures will also bear on consumption in years ahead, the IEA said.
But it raised its estimated price in real inflation-adjusted terms in 2014 to about 76 dollars a barrel from 60 dollars estimated in June.
The DoE's weekly report published on Wednesday said US distillate inventories had risen by 1.6 million barrels in the week ended December 4, against market expectations for a drop of 500,000 barrels.
Distillate stockpiles, which include heating fuel, usually fall as the northern hemisphere winter season begins to set in.
The DoE said US crude reserves fell by 3.8 million barrels last week but were 4.4 per cent higher than their year-ago level and above the upper limit of the average range for this time of year.
Over the past four weeks, the US consumed on average 18.5 million barrels of petroleum products a day, a decline of 3.0 per cent from the same period a year ago.
Oil traders were also looking ahead to an upcoming meeting of the Organization of Petroleum Exporting Countries that will decide on producers' crude output levels.
Saudi Arabia-de facto head of OPEC-has said that the oil producers cartel should not raise its output quota at a meeting later this month as oil prices of between 70 and 80 dollars were "close to the target."
By Friday on the New York Mercantile Exchange (NYMEX), light sweet crude for delivery in January dived to 69.79 dollars a barrel from 77.61 dollars a week earlier.
On London's InterContinental Exchange (ICE), Brent North Sea crude for January delivery slumped to 71.45 dollars from 79.48 dollars a week earlier.
BASE METALS: Base metals prices mostly fell although there was a 13- month high for aluminium.
"Aluminium stocks continued to fall," said Barclays Capital analyst Natalya Naqvi, explaining the metal's rise to 2,277 dollars a tonne-the highest level since October, 2008.
By Friday on the London Metal Exchange, copper for delivery in three months dropped to 6,850 dollars a tonne from 7,124.75 dollars a week earlier.
Three-month aluminium jumped to 2,277 dollars a tonne from 2,156 dollars.
Three-month lead slid to 2,307.50 dollars a tonne from 2,380.25 dollars.
Three-month tin slipped to 15,200 dollars a tonne from 15,300 dollars.
Three-month zinc retreated to 2,305 dollars a tonne from 2,397 dollars.
Three-month nickel advanced to 16,525 dollars a tonne from 16,350 dollars.
COCOA: Cocoa prices reached the highest point for almost 25 years in London trading.
They struck 2,301 pounds a tonne-a level last seen in February, 1985.
"Market chatter continued around the ever-running concerns of increasing demand against a backdrop of dwindling supplies," said Sucden brokerage analyst Stephanie Garner.
"Whether the concerns are sufficient in reality to warrant cocoa prices breaking highs set almost two-and-a-half decades ago is questionable," she added.
By Friday on LIFFE, London's futures exchange, the price of cocoa for delivery in May stood at 2,293 pounds a tonne compared with 2,184 pounds for the expired March contract a week earlier.
On the New York Board of Trade (NYBOT), the March cocoa contract climbed to 3,415 dollars a tonne from 3,367 dollars.
SUGAR: Sugar prices rallied.
By Friday on LIFFE, the price of a tonne of white sugar for delivery in March climbed to 662.80 pounds from 613.40 pounds a week earlier.
On NYBOT, the price of unrefined sugar for March rose to 23.36 US cents a pound from 22.40 cents.
GRAINS AND SOYA: Maize prices rose following snowfall in the United States while soya and wheat prices dropped owing to a stronger dollar.
By Friday on the Chicago Board of Trade, maize for delivery in March grew to 3.92 dollars a bushel from 3.89 dollars a week earlier.
January-dated soyabean meal-used in animal feed-slipped to 10.24 dollars from 10.43 dollars.
Wheat for March decreased to 5.36 dollars a bushel from 5.58 dollars.
COFFEE: Coffee prices rose for a third week.
By Friday on LIFFE, Robusta for delivery in March advanced to 1,388 dollars a tonne from 1,356 dollars a week earlier.
On the NYBOT, Arabica for March increased to 141.35 US cents a pound from 140.50 cents. RUBBER: Malaysian rubber prices dropped amid quiet trade.
Dealers noted a potential for prices to rise with demand from overseas buyers intact.
On Friday, the Malaysian Rubber Board's benchmark SMR20 fell to 271.80 US cents a kilo from 275.80 cents a week earlier.
PRECIOUS METALS: Gold prices extended losses after the precious metal had hit a record high of 1,226.56 dollars an ounce on December 3.
Gold prices fell "as a stronger dollar prompts profit- taking," said Barclays Capital analyst Suki Cooper.
The dollar won back some ground against the euro this week on growing concerns about Europe's mounting debt strains.
Greek Prime Minister George Papandreou Friday ruled out going cap in hand to the International Monetary Fund as a way out of his country's 300- billion-euro debt morass.
The beleaguered premier said it was "out of the question to resort to the IMF" after earlier stating in Brussels at a European Union summit that Greece-a member of the eurozone-was "not about to default on its debts."
Greece's sovereign debt was downgraded this week by the international ratings agency Fitch, prompting fears of dangerous divergence in the 16 countries that use the euro.
Gold prices had meanwhile smashed records in recent weeks on the back of inflationary fears and increasing moves by central banks to diversify assets away from the dollar. Gold is traditionally viewed as a safe-haven investment.
By late Friday on the London Bullion Market, gold dropped to 1,124 dollars an ounce from 1,190.25 dollars a week earlier.
Silver slid to 17.51 dollars an ounce from 18.83 dollars.
On the London Platinum and Palladium Market, platinum retreated to 1,429 dollars an ounce at the late fixing on Friday from 1,472 dollars the previous week.
Palladium fell to 367 dollars an ounce from 378 dollars.
OIL: Oil prices plunged under 70 dollars amid signs of weak energy demand in the United States.
World oil demand is set to firm slightly more than expected next year because economies, especially in emerging countries, are recovering but US consumption is "sluggish," the International Energy Agency said on Friday.
The global crisis has probably removed some demand permanently and energy-saving measures will also bear on consumption in years ahead, the IEA said.
But it raised its estimated price in real inflation-adjusted terms in 2014 to about 76 dollars a barrel from 60 dollars estimated in June.
The DoE's weekly report published on Wednesday said US distillate inventories had risen by 1.6 million barrels in the week ended December 4, against market expectations for a drop of 500,000 barrels.
Distillate stockpiles, which include heating fuel, usually fall as the northern hemisphere winter season begins to set in.
The DoE said US crude reserves fell by 3.8 million barrels last week but were 4.4 per cent higher than their year-ago level and above the upper limit of the average range for this time of year.
Over the past four weeks, the US consumed on average 18.5 million barrels of petroleum products a day, a decline of 3.0 per cent from the same period a year ago.
Oil traders were also looking ahead to an upcoming meeting of the Organization of Petroleum Exporting Countries that will decide on producers' crude output levels.
Saudi Arabia-de facto head of OPEC-has said that the oil producers cartel should not raise its output quota at a meeting later this month as oil prices of between 70 and 80 dollars were "close to the target."
By Friday on the New York Mercantile Exchange (NYMEX), light sweet crude for delivery in January dived to 69.79 dollars a barrel from 77.61 dollars a week earlier.
On London's InterContinental Exchange (ICE), Brent North Sea crude for January delivery slumped to 71.45 dollars from 79.48 dollars a week earlier.
BASE METALS: Base metals prices mostly fell although there was a 13- month high for aluminium.
"Aluminium stocks continued to fall," said Barclays Capital analyst Natalya Naqvi, explaining the metal's rise to 2,277 dollars a tonne-the highest level since October, 2008.
By Friday on the London Metal Exchange, copper for delivery in three months dropped to 6,850 dollars a tonne from 7,124.75 dollars a week earlier.
Three-month aluminium jumped to 2,277 dollars a tonne from 2,156 dollars.
Three-month lead slid to 2,307.50 dollars a tonne from 2,380.25 dollars.
Three-month tin slipped to 15,200 dollars a tonne from 15,300 dollars.
Three-month zinc retreated to 2,305 dollars a tonne from 2,397 dollars.
Three-month nickel advanced to 16,525 dollars a tonne from 16,350 dollars.
COCOA: Cocoa prices reached the highest point for almost 25 years in London trading.
They struck 2,301 pounds a tonne-a level last seen in February, 1985.
"Market chatter continued around the ever-running concerns of increasing demand against a backdrop of dwindling supplies," said Sucden brokerage analyst Stephanie Garner.
"Whether the concerns are sufficient in reality to warrant cocoa prices breaking highs set almost two-and-a-half decades ago is questionable," she added.
By Friday on LIFFE, London's futures exchange, the price of cocoa for delivery in May stood at 2,293 pounds a tonne compared with 2,184 pounds for the expired March contract a week earlier.
On the New York Board of Trade (NYBOT), the March cocoa contract climbed to 3,415 dollars a tonne from 3,367 dollars.
SUGAR: Sugar prices rallied.
By Friday on LIFFE, the price of a tonne of white sugar for delivery in March climbed to 662.80 pounds from 613.40 pounds a week earlier.
On NYBOT, the price of unrefined sugar for March rose to 23.36 US cents a pound from 22.40 cents.
GRAINS AND SOYA: Maize prices rose following snowfall in the United States while soya and wheat prices dropped owing to a stronger dollar.
By Friday on the Chicago Board of Trade, maize for delivery in March grew to 3.92 dollars a bushel from 3.89 dollars a week earlier.
January-dated soyabean meal-used in animal feed-slipped to 10.24 dollars from 10.43 dollars.
Wheat for March decreased to 5.36 dollars a bushel from 5.58 dollars.
COFFEE: Coffee prices rose for a third week.
By Friday on LIFFE, Robusta for delivery in March advanced to 1,388 dollars a tonne from 1,356 dollars a week earlier.
On the NYBOT, Arabica for March increased to 141.35 US cents a pound from 140.50 cents. RUBBER: Malaysian rubber prices dropped amid quiet trade.
Dealers noted a potential for prices to rise with demand from overseas buyers intact.
On Friday, the Malaysian Rubber Board's benchmark SMR20 fell to 271.80 US cents a kilo from 275.80 cents a week earlier.