Oil price hits ten-month high, sugar notches historic peak
Sunday, 9 August 2009
LONDON, Aug 8 (AFP): The price of oil raced to a ten- month peak here this week and metals futures rallied strongly as the dollar retreated on positive economic data, traders said.
Sugar meanwhile struck an all-time high in London, aided by a weaker dollar amid more positive signs of economic recovery and the commodity's weak supply situation.
As investors grew bolder on fresh signs of a financial upturn, the dollar slid to an eight-month low against the euro this week.
The euro is seen as a higher-risk investment than the dollar and tends to strengthen in times of increasing confidence.
A weaker dollar meanwhile encourages demand for commodities priced in the US unit when they become cheaper for buyers holding other currencies.
OIL: Brent North Sea crude for delivery in September hit 76 dollars a barrel on Thursday-the highest level since October. New York crude reached a five-week high of 72.42 dollars the same day.
The better-than-expected figures may hand a lift to crude demand, which has fallen owing to the economic downturn.
Data released on Wednesday by the US Department of Energy (DoE) painted a mixed picture of oil demand in the United States, the world's biggest energy user.
The widely-monitored DoE report said US crude oil stockpiles soared by 1.7 million barrels in the week ending July 31, three times more than the average analyst projection.
Inventories of distillates, which include diesel and heating fuel, sank by 1.1 million barrels, instead of the 900,000-barrel increase expected.
PRECIOUS METALS: Prices rose across the board, reaching multi-month peaks.
On Friday, a group of 19 European central banks announced they would cap gold sales at 2,000 tonnes over the next five years and stressed the importance of gold to the international monetary system. By late Friday on the London Bullion Market, gold rose to 956 dollars an ounce from 939 dollars a week earlier. Silver gained to 14.65 dollars an ounce from 13.63 dollars.
On the London Platinum and Palladium Market, platinum grew to 1,260 dollars an ounce at the late fixing on Friday from 1,189 dollars. Palladium advanced to 271 dollars an ounce from 256 dollars.
BASE METALS: Base metals prices reached multi-month highs although some ended the week lower as profit-taking set in.
A tonne of copper for delivery in three months reached 6,235 dollars-the highest point since October. Zinc jumped to a 19- month high of 1,932.50 dollars.
By Friday on the London Metal Exchange, copper for delivery in three months climbed to 5,969 dollars a tonne from 5,685 dollars a week earlier.
Three-month aluminium rose to 1,991 dollars a tonne from 1,876 dollars. Three-month lead dipped to 1,832 dollars a tonne from 1,851 dollars. Three-month tin fell to 14,499 dollars a tonne from 14,600 dollars. Three-month zinc increased to 1,834 dollars a tonne from 1,732 dollars. Three-month nickel surged to 19,350 dollars a tonne from 17,575 dollars.
SUGAR: The price of sugar reached a record high in London trading after jumping 25 per cent in three weeks.
White sugar for delivery in October reached 537.30 pounds a tonne-the highest level since the commodity was first traded under its current form in 1983. In New York, unrefined sugar for October hit a 28-year high of 20.68 US cents a pound. By Friday on LIFFE, London's futures exchange, the price of a tonne of white sugar for delivery in October grew to 493 pounds from 475.70 pounds a week earlier. On NYBOT, the price of unrefined sugar for October climbed to 18.76 US cents a pound from 18.34 cents.
GRAINS AND SOYA: Maize and wheat prices dropped owing to weather conditions that supported supplies, while soya gained on strong demand for the commodity, traders said.
By Friday on the Chicago Board of Trade, maize for delivery in December fell to 3.38 dollars a bushel from 3.49 dollars a week earlier. November-dated soyabean meal-used in animal feed-increased to 10.44 dollars from 9.82 dollars. Wheat for September fell to 5.00 dollars a bushel from 5.28 dollars.
COCOA: Cocoa prices fell in London and New York. By Friday on LIFFE, the price of cocoa for delivery in September dropped to 1,763 pounds a tonne from 1,837 pounds a week earlier. On the New York Board of Trade (NYBOT), the September cocoa contract slipped to 2,841 dollars a tonne from 2,886 dollars.
COFFEE: Coffee prices traded mixed. By Friday on LIFFE, Robusta for delivery in September dipped to 1,476 dollars a tonne from 1,485 dollars a week earlier.
On the NYBOT, Arabica for September rose to 134.90 US cents a pound from 125.10 cents.
RUBBER: Malaysian rubber prices rose on strong demand caused by concerns over tight supplies in producing countries hit by heavy rain, dealers said.
By Friday, the Malaysian Rubber Board's benchmark SMR20 rose to 185.10 US cents a kilo from 178.50 US cents a kilo a week earlier.
Sugar meanwhile struck an all-time high in London, aided by a weaker dollar amid more positive signs of economic recovery and the commodity's weak supply situation.
As investors grew bolder on fresh signs of a financial upturn, the dollar slid to an eight-month low against the euro this week.
The euro is seen as a higher-risk investment than the dollar and tends to strengthen in times of increasing confidence.
A weaker dollar meanwhile encourages demand for commodities priced in the US unit when they become cheaper for buyers holding other currencies.
OIL: Brent North Sea crude for delivery in September hit 76 dollars a barrel on Thursday-the highest level since October. New York crude reached a five-week high of 72.42 dollars the same day.
The better-than-expected figures may hand a lift to crude demand, which has fallen owing to the economic downturn.
Data released on Wednesday by the US Department of Energy (DoE) painted a mixed picture of oil demand in the United States, the world's biggest energy user.
The widely-monitored DoE report said US crude oil stockpiles soared by 1.7 million barrels in the week ending July 31, three times more than the average analyst projection.
Inventories of distillates, which include diesel and heating fuel, sank by 1.1 million barrels, instead of the 900,000-barrel increase expected.
PRECIOUS METALS: Prices rose across the board, reaching multi-month peaks.
On Friday, a group of 19 European central banks announced they would cap gold sales at 2,000 tonnes over the next five years and stressed the importance of gold to the international monetary system. By late Friday on the London Bullion Market, gold rose to 956 dollars an ounce from 939 dollars a week earlier. Silver gained to 14.65 dollars an ounce from 13.63 dollars.
On the London Platinum and Palladium Market, platinum grew to 1,260 dollars an ounce at the late fixing on Friday from 1,189 dollars. Palladium advanced to 271 dollars an ounce from 256 dollars.
BASE METALS: Base metals prices reached multi-month highs although some ended the week lower as profit-taking set in.
A tonne of copper for delivery in three months reached 6,235 dollars-the highest point since October. Zinc jumped to a 19- month high of 1,932.50 dollars.
By Friday on the London Metal Exchange, copper for delivery in three months climbed to 5,969 dollars a tonne from 5,685 dollars a week earlier.
Three-month aluminium rose to 1,991 dollars a tonne from 1,876 dollars. Three-month lead dipped to 1,832 dollars a tonne from 1,851 dollars. Three-month tin fell to 14,499 dollars a tonne from 14,600 dollars. Three-month zinc increased to 1,834 dollars a tonne from 1,732 dollars. Three-month nickel surged to 19,350 dollars a tonne from 17,575 dollars.
SUGAR: The price of sugar reached a record high in London trading after jumping 25 per cent in three weeks.
White sugar for delivery in October reached 537.30 pounds a tonne-the highest level since the commodity was first traded under its current form in 1983. In New York, unrefined sugar for October hit a 28-year high of 20.68 US cents a pound. By Friday on LIFFE, London's futures exchange, the price of a tonne of white sugar for delivery in October grew to 493 pounds from 475.70 pounds a week earlier. On NYBOT, the price of unrefined sugar for October climbed to 18.76 US cents a pound from 18.34 cents.
GRAINS AND SOYA: Maize and wheat prices dropped owing to weather conditions that supported supplies, while soya gained on strong demand for the commodity, traders said.
By Friday on the Chicago Board of Trade, maize for delivery in December fell to 3.38 dollars a bushel from 3.49 dollars a week earlier. November-dated soyabean meal-used in animal feed-increased to 10.44 dollars from 9.82 dollars. Wheat for September fell to 5.00 dollars a bushel from 5.28 dollars.
COCOA: Cocoa prices fell in London and New York. By Friday on LIFFE, the price of cocoa for delivery in September dropped to 1,763 pounds a tonne from 1,837 pounds a week earlier. On the New York Board of Trade (NYBOT), the September cocoa contract slipped to 2,841 dollars a tonne from 2,886 dollars.
COFFEE: Coffee prices traded mixed. By Friday on LIFFE, Robusta for delivery in September dipped to 1,476 dollars a tonne from 1,485 dollars a week earlier.
On the NYBOT, Arabica for September rose to 134.90 US cents a pound from 125.10 cents.
RUBBER: Malaysian rubber prices rose on strong demand caused by concerns over tight supplies in producing countries hit by heavy rain, dealers said.
By Friday, the Malaysian Rubber Board's benchmark SMR20 rose to 185.10 US cents a kilo from 178.50 US cents a kilo a week earlier.