Oil prices bounce, metals bend lower
Sunday, 10 June 2007
LONDON, June 9 (AFP): World oil prices bounced higher this week, but ended on a flat note as traders tracked US supply news alongside a rogue cyclone in the Middle East.
Precious metals gold and silver retreated as the US dollar strengthened, while base metals, such as copper, tin and nickel, fell partly because of rising global stockpiles.
GOLD: Gold prices dived lower. "Dollar strength has weighed on the gold market this month," said Standard Chartered analyst Helen Henton.
A stronger US currency tends to crimp demand for dollar- denominated commodities, such as gold and silver, as they become more expensive for buyers holding other currencies.
On the London Bullion Market, gold fell heavily to 655.25 dollars an ounce at Friday's late fixing, from 666.50 dollars a week earlier.
SILVER: Silver prices also fell. "Silver was quick to follow gold lower," noted James Moore, analyst at specialist website TheBullionDesk.com, adding that weaker base metal prices were providing additional pressure.
On the London Bullion Market, silver pulled back to 13.31 dollars an ounce at Friday's late fixing, from 13.53 dollars a week earlier.
PALLADIUM AND PLATINUM: Sister metals platinum and palladium prices sank.
"Platinum prices have largely tracked gold over the last month," Henton said, adding that strong demand from the automaking sector would underpin demand going forward.
On the London Platinum and Palladium Market, platinum fell to 1,288 dollars an ounce at the late fixing Friday, from 1,290 dollars a week earlier. Palladium recoiled to 369 dollars an ounce, from 371 dollars.
BASE METALS: All base metals lost their shine, with nickel the worst performer.
On Friday, three-month copper prices sank to 7,202 dollars a tonne on the London Metal Exchange, from 7,420 dollars a week earlier. Three-month aluminium prices fell to 2,709 dollars a tonne from 2,812 dollars. Three-month nickel prices slumped to 42,600 dollars a tonne from 47,595 dollars. Three-month lead prices declined to 2,257 dollars a tonne from 2,355 dollars. Three-month zinc prices slid to 3,600 dollars a tonne from 3,710.50 dollars. Three-month tin prices fell to 13,705 dollars a tonne from 14,050 dollars.
OIL: World oil prices edged up as traders digested news that US refinery production fell last week as the peak-demand season for gasoline kicked off.
Investors also kept a keen eye on a rogue cyclone which powered through the Middle Eastern region.
Prices also found support from further outages in Nigeria, which is the world's sixth-largest oil producer and the biggest on the African continent.
Although the storm had raised fears about oil shipments in the Strait of Hormuz, through which about one quarter of the world's crude supplies pass, officials said shipping had not been affected.
Brent North Sea crude for July delivery stood at 69.78 dollars per barrel Friday, compared with 69.07 dollars per barrel at the close Friday of the previous week.
New York's main oil futures contract, light sweet crude for delivery in July, climbed to 65.81 dollars per barrel, from 65.08 dollars a barrel the previous week.
COCOA: Cocoa prices fell. "London cocoa ended weaker after reports of more rain in Ivory Coast eased concerns over crop damage and instigated speculative selling," Sucden's Davies added.
By Friday on the LIFFE, the price of cocoa for July delivery slipped to 1,015 pounds a tonne, from 1,028 pounds a week earlier.
On the New York Board of Trade (NYBOT), the July contract decreased to 1,841 dollars a tonne, from 1,883 dollars.
COFFEE: Coffee prices enjoyed their highest level in London for nine years, hitting 1,890 dollars per tonne.
Vietnam accounts for more than one third of total Robusta coffee exports. By Friday on the LIFFE, Robusta quality for July delivery advanced to 1,874 dollars a tonne, from 1,778 dollars a week earlier.
GRAINS AND SOYA: Grains and soya prices saw mixed trading as traders tracked growing conditions in key producing countries.
"The main focus this week has been the declining crops in Western Russia and Ukraine because of a drought," said Allendale analyst Joe Victor.
Wheat for July delivery climbed to 5.25 dollars a bushel, from 5.2075 dollars.
July-dated soyabean meal-used in animal feed-decreased to 8.1350 dollars, from 8.1750 dollars.
On the LIFFE, London's futures exchange, the price per tonne of wheat for November delivery increased to 106 pounds, from 103.80 pounds the previous week.
SUGAR: Sugar prices dived lower. "Fundamentals remain bearish with more negative news after it was confirmed that India was selling a massive crop of raw sugar, planning to export around 500,000 tonnes of raw sugar in the next season to the Middle East and Bangladesh," dealers said.
By Friday on the LIFFE, the price per tonne of white sugar for August delivery fell to 311.50 dollars, from 333.20 dollars a week earlier.
On the NYBOT, the price of unrefined sugar for July delivery slumped to 8.74 US cents a pound, from 9.24 cents.
RUBBER: The price of rubber fell as rainy weather dampened output in key producing countries.
"Weather conditions are still bad. It has been raining heavily and this has disrupted production," said rubber broker Robert Chai from Intracom.
On Friday, the Malaysian Rubber Board's benchmark SMR20 fell to 215.65 US cents per kilogram, compared with 223.70 US cents the previous week.
WOOL: The price of wool unwound in major producer Australia as the local currency hit 17-year highs against the US dollar. A stronger Australian dollar which makes exports more expensive for buyers abroad.
The Australian wool market finished the week 2.0 per cent lower on average, with the Eastern Index closing at 9.98 Australian dollars per kilo, compared with 10.16 the previous week.
Precious metals gold and silver retreated as the US dollar strengthened, while base metals, such as copper, tin and nickel, fell partly because of rising global stockpiles.
GOLD: Gold prices dived lower. "Dollar strength has weighed on the gold market this month," said Standard Chartered analyst Helen Henton.
A stronger US currency tends to crimp demand for dollar- denominated commodities, such as gold and silver, as they become more expensive for buyers holding other currencies.
On the London Bullion Market, gold fell heavily to 655.25 dollars an ounce at Friday's late fixing, from 666.50 dollars a week earlier.
SILVER: Silver prices also fell. "Silver was quick to follow gold lower," noted James Moore, analyst at specialist website TheBullionDesk.com, adding that weaker base metal prices were providing additional pressure.
On the London Bullion Market, silver pulled back to 13.31 dollars an ounce at Friday's late fixing, from 13.53 dollars a week earlier.
PALLADIUM AND PLATINUM: Sister metals platinum and palladium prices sank.
"Platinum prices have largely tracked gold over the last month," Henton said, adding that strong demand from the automaking sector would underpin demand going forward.
On the London Platinum and Palladium Market, platinum fell to 1,288 dollars an ounce at the late fixing Friday, from 1,290 dollars a week earlier. Palladium recoiled to 369 dollars an ounce, from 371 dollars.
BASE METALS: All base metals lost their shine, with nickel the worst performer.
On Friday, three-month copper prices sank to 7,202 dollars a tonne on the London Metal Exchange, from 7,420 dollars a week earlier. Three-month aluminium prices fell to 2,709 dollars a tonne from 2,812 dollars. Three-month nickel prices slumped to 42,600 dollars a tonne from 47,595 dollars. Three-month lead prices declined to 2,257 dollars a tonne from 2,355 dollars. Three-month zinc prices slid to 3,600 dollars a tonne from 3,710.50 dollars. Three-month tin prices fell to 13,705 dollars a tonne from 14,050 dollars.
OIL: World oil prices edged up as traders digested news that US refinery production fell last week as the peak-demand season for gasoline kicked off.
Investors also kept a keen eye on a rogue cyclone which powered through the Middle Eastern region.
Prices also found support from further outages in Nigeria, which is the world's sixth-largest oil producer and the biggest on the African continent.
Although the storm had raised fears about oil shipments in the Strait of Hormuz, through which about one quarter of the world's crude supplies pass, officials said shipping had not been affected.
Brent North Sea crude for July delivery stood at 69.78 dollars per barrel Friday, compared with 69.07 dollars per barrel at the close Friday of the previous week.
New York's main oil futures contract, light sweet crude for delivery in July, climbed to 65.81 dollars per barrel, from 65.08 dollars a barrel the previous week.
COCOA: Cocoa prices fell. "London cocoa ended weaker after reports of more rain in Ivory Coast eased concerns over crop damage and instigated speculative selling," Sucden's Davies added.
By Friday on the LIFFE, the price of cocoa for July delivery slipped to 1,015 pounds a tonne, from 1,028 pounds a week earlier.
On the New York Board of Trade (NYBOT), the July contract decreased to 1,841 dollars a tonne, from 1,883 dollars.
COFFEE: Coffee prices enjoyed their highest level in London for nine years, hitting 1,890 dollars per tonne.
Vietnam accounts for more than one third of total Robusta coffee exports. By Friday on the LIFFE, Robusta quality for July delivery advanced to 1,874 dollars a tonne, from 1,778 dollars a week earlier.
GRAINS AND SOYA: Grains and soya prices saw mixed trading as traders tracked growing conditions in key producing countries.
"The main focus this week has been the declining crops in Western Russia and Ukraine because of a drought," said Allendale analyst Joe Victor.
Wheat for July delivery climbed to 5.25 dollars a bushel, from 5.2075 dollars.
July-dated soyabean meal-used in animal feed-decreased to 8.1350 dollars, from 8.1750 dollars.
On the LIFFE, London's futures exchange, the price per tonne of wheat for November delivery increased to 106 pounds, from 103.80 pounds the previous week.
SUGAR: Sugar prices dived lower. "Fundamentals remain bearish with more negative news after it was confirmed that India was selling a massive crop of raw sugar, planning to export around 500,000 tonnes of raw sugar in the next season to the Middle East and Bangladesh," dealers said.
By Friday on the LIFFE, the price per tonne of white sugar for August delivery fell to 311.50 dollars, from 333.20 dollars a week earlier.
On the NYBOT, the price of unrefined sugar for July delivery slumped to 8.74 US cents a pound, from 9.24 cents.
RUBBER: The price of rubber fell as rainy weather dampened output in key producing countries.
"Weather conditions are still bad. It has been raining heavily and this has disrupted production," said rubber broker Robert Chai from Intracom.
On Friday, the Malaysian Rubber Board's benchmark SMR20 fell to 215.65 US cents per kilogram, compared with 223.70 US cents the previous week.
WOOL: The price of wool unwound in major producer Australia as the local currency hit 17-year highs against the US dollar. A stronger Australian dollar which makes exports more expensive for buyers abroad.
The Australian wool market finished the week 2.0 per cent lower on average, with the Eastern Index closing at 9.98 Australian dollars per kilo, compared with 10.16 the previous week.