Oil prices recover, metals mixed
Sunday, 30 November 2008
LONDON, Nov 29 (AFP): Oil prices recovered this week after slumping to near four-year lows under 50 dollars a barrel, while commodity futures in general won a boost from rebounding stock markets, traders said.
World stock market bounced higher this week as investors shrugged off worries about a looming global recession, in turn providing confidence to oil, precious metals and grains markets.
OIL: Oil prices roared higher towards 55 dollars on Monday as equity markets surged on global government action aimed at tackling a severe economic downturn.
However they gave up much of their early gains by Friday as key ministers from the OPEC producers group suggested the cartel would wait until next month before announcing any decision to cut output.
Organization of Petroleum Exporting Countries ministers are holding consultations in the Egyptian capital this weekend.
OPEC Secretary General Abdalla Salem El-Badri had said ahead of Saturday's meeting that the oil market was "over-supplied"-an indication that the group sees current production levels as too high.
PRECIOUS METALS: Gold, silver, platinum and palladium prices all rose.
"Gold prices had found a floor recently on the back of a pick up in physical demand, and the weakening dollar now coupled with renewed geopolitical concerns adds to the interest in gold as a safe-haven asset," said analysts at Barclays Capital.
On the London Bullion Market, gold rallied to 814.50 dollars an ounce at Friday's late fixing from 774.50 dollars a week earlier.
Silver increased to 10.12 dollars an ounce from 9.17 dollars.
On the London Platinum and Palladium Market, platinum gained to 876 dollars an ounce at the late fixing on Friday from 812 dollars a week earlier.
Palladium climbed to 187 dollars an ounce from 183 dollars.
BASE METALS: Base metals prices mostly fell, though copper and aluminium rebounded from their lowest points for more than three years.
"Metals have come under pressure on a slowdown in demand and supply increases," said BNP Paribas analyst Michael Widmer.
By Friday, copper for delivery in three months had risen to 3,610 dollars a tonne on the London Metal Exchange from 3,574 dollars a week earlier. Three-month aluminium dipped to 1,755 dollars a tonne from 1,803 dollars. Three-month lead dropped to 1,080 dollars a tonne from 1,217 dollars. Three-month zinc eased to 1,195 dollars a tonne from 1,200 dollars. Three-month tin increased to 12,305 dollars a tonne from 11,700 dollars.
COCOA: Cocoa futures extended gains. "Support was provided by the release of Ivory Coast cocoa bean export data for October-the first marketing month in the 2008/09 harvest year," said analysts at Barclays Capital.
By Friday on LIFFE, London's futures exchange, the price of cocoa for delivery in March climbed to 1,515 pounds a tonne from 1,509 pounds a week earlier.
On the New York Board of Trade (NYBOT), the March cocoa contract rose to 2,280 dollars a tonne from 2,050 dollars. COFFEE: Coffee prices rebounded and were expected to gain further owing to fears of flood damage to harvests in Vietnam.
By Friday on LIFFE, Robusta for delivery in January climbed to 1,980 dollars a tonne from 1,805 dollars a week earlier.
On the NYBOT, Arabica for March increased to 115.80 US cents a pound from 111.25 cents.
SUGAR: Sugar prices recovered. "An Asian sugar deficit following strongly growing demand is a key feature of the world market," said the Public Ledger.
By Friday on LIFFE, the price of a tonne of white sugar for delivery in March rose to 328.40 pounds from 320.50 pounds the previous week. On NYBOT, the price of unrefined sugar for March increased to 11.88 US cents per pound from 11.36 cents.
GRAINS AND SOYA: Grains and soya prices rallied. By Friday on the Chicago Board of Trade, maize for delivery in March climbed to 3.67 dollars a bushel from 3.54 dollars the previous week.
January-dated soyabean meal-used in animal feed-advanced to 8.79 dollars from 8.40 dollars. Wheat for March jumped to 5.56 dollars a bushel from 5.18 dollars.
RUBBER: Malaysian rubber prices dropped, despite the world's top rubber producers-Thailand, Malaysia and Indonesia-cutting output.
On Friday the Malaysian Rubber Board's benhcmark SMR20 fell to 140.35 US cents per kilo from 153.25 US cents per kilo last week.
World stock market bounced higher this week as investors shrugged off worries about a looming global recession, in turn providing confidence to oil, precious metals and grains markets.
OIL: Oil prices roared higher towards 55 dollars on Monday as equity markets surged on global government action aimed at tackling a severe economic downturn.
However they gave up much of their early gains by Friday as key ministers from the OPEC producers group suggested the cartel would wait until next month before announcing any decision to cut output.
Organization of Petroleum Exporting Countries ministers are holding consultations in the Egyptian capital this weekend.
OPEC Secretary General Abdalla Salem El-Badri had said ahead of Saturday's meeting that the oil market was "over-supplied"-an indication that the group sees current production levels as too high.
PRECIOUS METALS: Gold, silver, platinum and palladium prices all rose.
"Gold prices had found a floor recently on the back of a pick up in physical demand, and the weakening dollar now coupled with renewed geopolitical concerns adds to the interest in gold as a safe-haven asset," said analysts at Barclays Capital.
On the London Bullion Market, gold rallied to 814.50 dollars an ounce at Friday's late fixing from 774.50 dollars a week earlier.
Silver increased to 10.12 dollars an ounce from 9.17 dollars.
On the London Platinum and Palladium Market, platinum gained to 876 dollars an ounce at the late fixing on Friday from 812 dollars a week earlier.
Palladium climbed to 187 dollars an ounce from 183 dollars.
BASE METALS: Base metals prices mostly fell, though copper and aluminium rebounded from their lowest points for more than three years.
"Metals have come under pressure on a slowdown in demand and supply increases," said BNP Paribas analyst Michael Widmer.
By Friday, copper for delivery in three months had risen to 3,610 dollars a tonne on the London Metal Exchange from 3,574 dollars a week earlier. Three-month aluminium dipped to 1,755 dollars a tonne from 1,803 dollars. Three-month lead dropped to 1,080 dollars a tonne from 1,217 dollars. Three-month zinc eased to 1,195 dollars a tonne from 1,200 dollars. Three-month tin increased to 12,305 dollars a tonne from 11,700 dollars.
COCOA: Cocoa futures extended gains. "Support was provided by the release of Ivory Coast cocoa bean export data for October-the first marketing month in the 2008/09 harvest year," said analysts at Barclays Capital.
By Friday on LIFFE, London's futures exchange, the price of cocoa for delivery in March climbed to 1,515 pounds a tonne from 1,509 pounds a week earlier.
On the New York Board of Trade (NYBOT), the March cocoa contract rose to 2,280 dollars a tonne from 2,050 dollars. COFFEE: Coffee prices rebounded and were expected to gain further owing to fears of flood damage to harvests in Vietnam.
By Friday on LIFFE, Robusta for delivery in January climbed to 1,980 dollars a tonne from 1,805 dollars a week earlier.
On the NYBOT, Arabica for March increased to 115.80 US cents a pound from 111.25 cents.
SUGAR: Sugar prices recovered. "An Asian sugar deficit following strongly growing demand is a key feature of the world market," said the Public Ledger.
By Friday on LIFFE, the price of a tonne of white sugar for delivery in March rose to 328.40 pounds from 320.50 pounds the previous week. On NYBOT, the price of unrefined sugar for March increased to 11.88 US cents per pound from 11.36 cents.
GRAINS AND SOYA: Grains and soya prices rallied. By Friday on the Chicago Board of Trade, maize for delivery in March climbed to 3.67 dollars a bushel from 3.54 dollars the previous week.
January-dated soyabean meal-used in animal feed-advanced to 8.79 dollars from 8.40 dollars. Wheat for March jumped to 5.56 dollars a bushel from 5.18 dollars.
RUBBER: Malaysian rubber prices dropped, despite the world's top rubber producers-Thailand, Malaysia and Indonesia-cutting output.
On Friday the Malaysian Rubber Board's benhcmark SMR20 fell to 140.35 US cents per kilo from 153.25 US cents per kilo last week.