Metals slump, oil rises amid market volatility
Sunday, 19 August 2007
LONDON, Aug 18 (AFP): Metals prices plunged this week as traders sold heavily investments in gold and copper owing to fears of a global economic slowdown caused by the ongoing US housing crisis.
But a move Friday by the US central bank aimed at easing market worries helped push up crude futures.
OIL: Oil prices rebounded, with Brent crude bouncing back above 70 dollars a barrel in London, lifted by the Fed's monetary policy change Friday and fears that Hurricane Dean could damage energy facilities in the Gulf of Mexico.
Oil prices rebounded Friday, however, owing to the Fed action and news that Hurricane Dean was forecast to become a major hurricane within the next 24 hours.
By Friday, Brent North Sea crude for October delivery advanced to 70.51 dollars a barrel Friday, compared with 69.70 dollars for the September contract a week earlier.
New York's main oil futures contract, light sweet crude for delivery in September, gained to 71.92 dollars a barrel, from 70.68 dollars.
PRECIOUS METALS: Gold, silver, palladium and platinum prices all dropped owing to the financial uncertainty.
Gold fell despite traditionally being seen as a safe store of value in troubled times, while the other precious metals mirrored its downward spiral.
On the London Bullion Market, gold fell to 657.50 dollars an ounce at Friday's late fixing, from 670.50 dollars a week earlier.
Silver declined to 11.69 dollars an ounce, from 12.69 dollars.
On the London Platinum and Palladium Market, platinum slipped to 1,245 dollars an ounce at the late fixing Friday, from 1,269 dollars a week earlier.
Palladium decreased to 334 dollars an ounce, from 349 dollars.
BASE METALS: The prices of base metals slumped.
"Base metals prices are likely to continue tracking movements in the financial markets, which could mean further short-term losses," Barclays Capital analyst Gayle Berry said.
On Friday, the price of copper for delivery in three months tumbled to 6,930 dollars a tonne on the London Metal Exchange, from 7,400 dollars a week earlier.
Three-month aluminium prices fell to 2,498 dollars a tonne, from 2,599.50 dollars.
Three-month nickel prices dropped to 25,900 dollars a tonne, from 26,100 dollars.
Three-month lead prices slipped to 2,498 dollars a tonne, from 2,785.25 dollars.
Three-month zinc prices fell to 3,075 dollars a tonne, from 3,250 dollars.
Three-month tin prices dived to 13,565 dollars a tonne, from 16,352.50 dollars.
SUGAR: Sugar prices plunged to a two-year low of 273.50 pounds a tonne in London Friday.
By Friday on the LIFFE, the price a tonne of white sugar for October delivery shrunk to 280.50 pounds, from 281.00 pounds a week earlier.
On the NYBOT, the price of unrefined sugar for October delivery decreased to 9.37 US cents a pound, from 9.54 cents a week earlier.
COCOA: Cocoa prices extended losses, hitting the lowest levels since the first quarter of 2007.
"The weakness was almost entirely attributed to the contagion effect of the recent global financial market weakness, international funds selling off their positions across the board," Sucden analyst Stephanie Garnier said.
By Friday on the LIFFE, London's futures exchange, the price of cocoa for December delivery dropped to 950 pounds a tonne, from 976 pounds a week earlier.
On the New York Board of Trade (NYBOT), the September contract slumped to 1,757 dollars a tonne, from 1,854 dollars the previous Friday.
COFFEE: Coffee prices weakened further.
"These prices clearly look more attractive to the industry (buyers) and they are buying, but whether there is more of a sell-off to come first, is impossible to tell," Sucden analyst Ralph Hawes said.
By Friday on the LIFFE, Robusta quality for November delivery slid to 1,693 dollars a tonne, from 1,817 dollars one week earlier.
On the NYBOT, Arabica for December delivery fell to 119.75 US cents a pound, from 124.65 cents.
GRAINS AND SOYA: Maize and soya prices fell owing to rainy weather in the United States which increases supply.
"Weather is still going to play a key role going into next week for soya beans," Allendale analyst Joe Victor said.
By Friday on the Chicago Board of Trade, the price of maize for September delivery dropped to 3.22 dollars a bushel, from 3.33 dollars a week earlier.
Wheat for September delivery firmed to 6.68 dollars a bushel, from 6.67 dollars.
September-dated soyabean meal-used in animal feed-slid to 8.05 dollars, from 8.56 dollars.
On the LIFFE, the price per tonne of wheat for May delivery jumped to 155.00 pounds, from 145.00 pounds for the lower volume November contract a week earlier.
WOOL: The price of wool rose in major producer Australia this week on strong foreign buying despite a lack of interest by key consumer China.
The secretariat said the issue of whether China has reached its Australian wool quota for the year was still unresolved.
The Australian wool market finished 2.0 per cent higher on average, with the Eastern Index closing at 9.25 dollars a kilo.
But a move Friday by the US central bank aimed at easing market worries helped push up crude futures.
OIL: Oil prices rebounded, with Brent crude bouncing back above 70 dollars a barrel in London, lifted by the Fed's monetary policy change Friday and fears that Hurricane Dean could damage energy facilities in the Gulf of Mexico.
Oil prices rebounded Friday, however, owing to the Fed action and news that Hurricane Dean was forecast to become a major hurricane within the next 24 hours.
By Friday, Brent North Sea crude for October delivery advanced to 70.51 dollars a barrel Friday, compared with 69.70 dollars for the September contract a week earlier.
New York's main oil futures contract, light sweet crude for delivery in September, gained to 71.92 dollars a barrel, from 70.68 dollars.
PRECIOUS METALS: Gold, silver, palladium and platinum prices all dropped owing to the financial uncertainty.
Gold fell despite traditionally being seen as a safe store of value in troubled times, while the other precious metals mirrored its downward spiral.
On the London Bullion Market, gold fell to 657.50 dollars an ounce at Friday's late fixing, from 670.50 dollars a week earlier.
Silver declined to 11.69 dollars an ounce, from 12.69 dollars.
On the London Platinum and Palladium Market, platinum slipped to 1,245 dollars an ounce at the late fixing Friday, from 1,269 dollars a week earlier.
Palladium decreased to 334 dollars an ounce, from 349 dollars.
BASE METALS: The prices of base metals slumped.
"Base metals prices are likely to continue tracking movements in the financial markets, which could mean further short-term losses," Barclays Capital analyst Gayle Berry said.
On Friday, the price of copper for delivery in three months tumbled to 6,930 dollars a tonne on the London Metal Exchange, from 7,400 dollars a week earlier.
Three-month aluminium prices fell to 2,498 dollars a tonne, from 2,599.50 dollars.
Three-month nickel prices dropped to 25,900 dollars a tonne, from 26,100 dollars.
Three-month lead prices slipped to 2,498 dollars a tonne, from 2,785.25 dollars.
Three-month zinc prices fell to 3,075 dollars a tonne, from 3,250 dollars.
Three-month tin prices dived to 13,565 dollars a tonne, from 16,352.50 dollars.
SUGAR: Sugar prices plunged to a two-year low of 273.50 pounds a tonne in London Friday.
By Friday on the LIFFE, the price a tonne of white sugar for October delivery shrunk to 280.50 pounds, from 281.00 pounds a week earlier.
On the NYBOT, the price of unrefined sugar for October delivery decreased to 9.37 US cents a pound, from 9.54 cents a week earlier.
COCOA: Cocoa prices extended losses, hitting the lowest levels since the first quarter of 2007.
"The weakness was almost entirely attributed to the contagion effect of the recent global financial market weakness, international funds selling off their positions across the board," Sucden analyst Stephanie Garnier said.
By Friday on the LIFFE, London's futures exchange, the price of cocoa for December delivery dropped to 950 pounds a tonne, from 976 pounds a week earlier.
On the New York Board of Trade (NYBOT), the September contract slumped to 1,757 dollars a tonne, from 1,854 dollars the previous Friday.
COFFEE: Coffee prices weakened further.
"These prices clearly look more attractive to the industry (buyers) and they are buying, but whether there is more of a sell-off to come first, is impossible to tell," Sucden analyst Ralph Hawes said.
By Friday on the LIFFE, Robusta quality for November delivery slid to 1,693 dollars a tonne, from 1,817 dollars one week earlier.
On the NYBOT, Arabica for December delivery fell to 119.75 US cents a pound, from 124.65 cents.
GRAINS AND SOYA: Maize and soya prices fell owing to rainy weather in the United States which increases supply.
"Weather is still going to play a key role going into next week for soya beans," Allendale analyst Joe Victor said.
By Friday on the Chicago Board of Trade, the price of maize for September delivery dropped to 3.22 dollars a bushel, from 3.33 dollars a week earlier.
Wheat for September delivery firmed to 6.68 dollars a bushel, from 6.67 dollars.
September-dated soyabean meal-used in animal feed-slid to 8.05 dollars, from 8.56 dollars.
On the LIFFE, the price per tonne of wheat for May delivery jumped to 155.00 pounds, from 145.00 pounds for the lower volume November contract a week earlier.
WOOL: The price of wool rose in major producer Australia this week on strong foreign buying despite a lack of interest by key consumer China.
The secretariat said the issue of whether China has reached its Australian wool quota for the year was still unresolved.
The Australian wool market finished 2.0 per cent higher on average, with the Eastern Index closing at 9.25 dollars a kilo.