Oil prices jump on US motor fuel fears, wheat hits 11 year peak
Sunday, 17 June 2007
LONDON, June 16 (AFP): The price of crude oil on world markets raced higher this week, with London Brent crude breaching 71 dollars a barrel on gasoline (petrol) supply concerns in the United States.
Wheat struck an 11-year high in Chicago owing to drought conditions in Ukraine and Russia.
The coffee market was rocked by production woes in key exporter Vietnam, where supplies are struggling to keep up with demand, sending London coffee futures to the highest level since 1998.
On the downside gold and silver were hurt by a stronger dollar, while the price of nickel slumped further.
GOLD: The price of gold fell to the lowest level since March as a strengthening dollar made the precious metal more expensive for buyers holding weaker currencies.
On the London Bullion Market, gold prices dropped to 643.38 dollars an ounce-the lowest point since March 14. The price later recovered, however.
PLATINUM: The sister metals extended losses, but the falls were limited by ongoing wage negotiations between bosses and staff in South Africa.
On the London Platinum and Palladium Market, platinum retreated to 1,278 dollars an ounce at the late fixing Friday, from 1,288 dollars a week earlier.
Palladium eased to 367 dollars an ounce, from 369 dollars.
BASE METALS: Most base metal prices increased.
Lead rebounded, reaching 2,350 dollars a tonne, which was close to its all-time peak of 2,380 dollars. Lead profited from low stockpiles of the metal amid strong demand.
OIL: World oil prices leapt above 71 dollars in London as traders seized on news of tightening motor fuel supplies in the United States, but gains were tempered by light profit-taking ahead of the weekend.
Gasoline or petrol stockpiles are presently a major influence on the market because of the ongoing US driving season, when demand traditionally peaks as American holidaymakers hit the highways.
GRAINS, SOYA: Grains and soya prices rallied, with wheat striking 6.07 dollars a bushel in Chicago-the highest level since 1996.
On the LIFFE, London's futures exchange, the price per tonne of wheat for November delivery gained to 112.75 pounds, from 106 pounds.
COFFEE: Coffee prices hit the highest level for nine years in London, lifted by concerns over insufficient supplies from Vietnam. They later fell on profit-taking.
On the LIFFE, London's futures exchange, Robusta prices leapt to 1,940 dollars a tonne-a pinnacle not reached since 1998.
The price of Robusta coffee has almost tripled in value since November 2004.
Coffee prices in London have rocketed as investors fret over lower exports from Vietnam, which is the world's second biggest coffee producer.
The concerns have also buoyed the price of Arabica beans, which are mainly grown in Brazil, the world's leading coffee producer.
High-caffeine Robusta, a bitter variety used in instant coffee, and the more expensive Arabica are the two most widely traded types of coffee.
By Friday on the LIFFE, Robusta quality for July delivery slid to 1,853 dollars a tonne, from 1,874 dollars a week earlier. On the NYBOT, Arabica for July delivery gained to 115.40 US
cents a pound, from 114.85 cents.
COCOA: Cocoa prices rebounded in London and New York owing to industry and fund buying.
"London cocoa futures were sharply higher, surging by approximately 4.0 per cent" Thursday, Sucden analyst Michael Davies said.
By Friday on the LIFFE, the price of cocoa for September delivery rose to 1,077 pounds a tonne, compared to 1,015 pounds a week earlier when the most traded contract was for the month of July.
On the New York Board of Trade (NYBOT), the September contract increased to 1,952 dollars a tonne, compared to 1,841 dollars for the July contract.
SUGAR: Sugar prices extended losses, briefly sliding under 300 dollars a tonne in London for the first time since April.
Prices are being weighed down by an abundance of sugar in the market, according to traders. By Friday on the LIFFE, the price per tonne of white sugar for August delivery dropped to 305.60 dollars, from 311.50 dollars a week earlier.
On the NYBOT, the price of unrefined sugar for July delivery slipped to 8.53 US cents a pound, from 8.74 cents.
WOOL: The price of wool in major producer Australia finished lower, as the commodity gave up more of the post-Easter gains which saw it hit a four-year high last month.
"Although easing again, the market remains above where it was four weeks ago in Australian, US and Euro currency," said the Australian Wool Industry Secretariat.
The Australian wool market finished 1.8 per cent lower on average from a week earlier, with the Eastern Index ending at 9.85 Australian dollars a kilogramme.
Wheat struck an 11-year high in Chicago owing to drought conditions in Ukraine and Russia.
The coffee market was rocked by production woes in key exporter Vietnam, where supplies are struggling to keep up with demand, sending London coffee futures to the highest level since 1998.
On the downside gold and silver were hurt by a stronger dollar, while the price of nickel slumped further.
GOLD: The price of gold fell to the lowest level since March as a strengthening dollar made the precious metal more expensive for buyers holding weaker currencies.
On the London Bullion Market, gold prices dropped to 643.38 dollars an ounce-the lowest point since March 14. The price later recovered, however.
PLATINUM: The sister metals extended losses, but the falls were limited by ongoing wage negotiations between bosses and staff in South Africa.
On the London Platinum and Palladium Market, platinum retreated to 1,278 dollars an ounce at the late fixing Friday, from 1,288 dollars a week earlier.
Palladium eased to 367 dollars an ounce, from 369 dollars.
BASE METALS: Most base metal prices increased.
Lead rebounded, reaching 2,350 dollars a tonne, which was close to its all-time peak of 2,380 dollars. Lead profited from low stockpiles of the metal amid strong demand.
OIL: World oil prices leapt above 71 dollars in London as traders seized on news of tightening motor fuel supplies in the United States, but gains were tempered by light profit-taking ahead of the weekend.
Gasoline or petrol stockpiles are presently a major influence on the market because of the ongoing US driving season, when demand traditionally peaks as American holidaymakers hit the highways.
GRAINS, SOYA: Grains and soya prices rallied, with wheat striking 6.07 dollars a bushel in Chicago-the highest level since 1996.
On the LIFFE, London's futures exchange, the price per tonne of wheat for November delivery gained to 112.75 pounds, from 106 pounds.
COFFEE: Coffee prices hit the highest level for nine years in London, lifted by concerns over insufficient supplies from Vietnam. They later fell on profit-taking.
On the LIFFE, London's futures exchange, Robusta prices leapt to 1,940 dollars a tonne-a pinnacle not reached since 1998.
The price of Robusta coffee has almost tripled in value since November 2004.
Coffee prices in London have rocketed as investors fret over lower exports from Vietnam, which is the world's second biggest coffee producer.
The concerns have also buoyed the price of Arabica beans, which are mainly grown in Brazil, the world's leading coffee producer.
High-caffeine Robusta, a bitter variety used in instant coffee, and the more expensive Arabica are the two most widely traded types of coffee.
By Friday on the LIFFE, Robusta quality for July delivery slid to 1,853 dollars a tonne, from 1,874 dollars a week earlier. On the NYBOT, Arabica for July delivery gained to 115.40 US
cents a pound, from 114.85 cents.
COCOA: Cocoa prices rebounded in London and New York owing to industry and fund buying.
"London cocoa futures were sharply higher, surging by approximately 4.0 per cent" Thursday, Sucden analyst Michael Davies said.
By Friday on the LIFFE, the price of cocoa for September delivery rose to 1,077 pounds a tonne, compared to 1,015 pounds a week earlier when the most traded contract was for the month of July.
On the New York Board of Trade (NYBOT), the September contract increased to 1,952 dollars a tonne, compared to 1,841 dollars for the July contract.
SUGAR: Sugar prices extended losses, briefly sliding under 300 dollars a tonne in London for the first time since April.
Prices are being weighed down by an abundance of sugar in the market, according to traders. By Friday on the LIFFE, the price per tonne of white sugar for August delivery dropped to 305.60 dollars, from 311.50 dollars a week earlier.
On the NYBOT, the price of unrefined sugar for July delivery slipped to 8.53 US cents a pound, from 8.74 cents.
WOOL: The price of wool in major producer Australia finished lower, as the commodity gave up more of the post-Easter gains which saw it hit a four-year high last month.
"Although easing again, the market remains above where it was four weeks ago in Australian, US and Euro currency," said the Australian Wool Industry Secretariat.
The Australian wool market finished 1.8 per cent lower on average from a week earlier, with the Eastern Index ending at 9.85 Australian dollars a kilogramme.