World commodity prices slump amid US housing woes
Sunday, 12 August 2007
LONDON, Aug 11 (AFP): Global commodity prices slumped in the last week as speculators rushed to bank profits amid concern that demand for oil and metals will slide should the world economy dampen because of the US housing crisis.
"All markets remained softer after mounting fears of a global credit crunch rippled through commodity markets," analysts at BaseMetals.com said yesterday.
Nervous speculators sold commodities amid big sell-offs across global equity markets Thursday and Friday, switching investments to the dollar and yen, which are seen as safe havens in times of financial instability.
OIL: World oil prices dived, with a barrel of Brent below 69 dollars for the first time since June, on concern that energy demand may weaken amid the US subprime crisis.
The New York contract had soared to an historic high of 78.77 dollars per barrel in trading last week, on news of declining crude stockpiles in the United States, the world's biggest consumer of energy.
Prior to their current price slump, oil futures had risen by more than 20 per cent during June and July on concerns over rising geopolitical tensions, falling US crude stocks, growing US demand for motor fuel and expectations that crude demand will rise strongly this year.
New York's main oil futures contract, light sweet crude for delivery in September, plummeted to 70.68 dollars a barrel, from 76.67 dollars a barrel.
GOLD: Gold prices dipped as the dollar rose. A stronger US unit hurts demand for dollar-denominated commodities, such as gold, because they become more expensive for buyers holding weaker-performing currencies.
On the London Bullion Market, gold fell to 668.50 dollars an ounce at Friday's late fixing, from 670.50 dollars a week earlier.
SILVER: Silver prices fell heavily Friday after steadying earlier in the week. Silver fell to 12.69 dollars an ounce Friday, the lowest level since July 6.
On the London Bullion Market, silver dropped to 12.69 dollars an ounce at Friday's late fixing, from 12.96 dollars a week earlier.
PLATINUM: Platinum prices hit a six-year low of 1,262.25 dollars an ounce. The white metal was also weighed down by easing fears about strike action in South Africa.
On the London Platinum and Palladium Market, platinum slipped to 1,269 dollars an ounce at the late fixing Friday, from 1,286 dollars a week earlier. Palladium declined to 349 dollars an ounce, from 364 dollars.
BASE METALS: The prices of major base metals dropped, with the exception of tin, which hit an all-time high above 17,000 dollars a tonne.
The price of tin, however, struck an historic peak owing to tight supplies of the base metal.
On the London Metal Exchange (LME) the price of tin for delivery in three months reached 17,050 dollars a tonne-the highest point since 1989 when it was re-introduced on the London market.
Three-month aluminium prices fell to 2,599.50 dollars a tonne, from 2,675 dollars.
Three-month nickel prices dropped to 26,100 dollars a tonne, from 28,600 dollars.
Three-month lead prices slid to 2,785.25 dollars a tonne, from 3,300 dollars.
Three-month zinc prices decreased to 3,250 dollars a tonne, from 3,410 dollars. Three-month tin prices rose to 16,352.50 dollars a tonne, from 16,237 dollars.
COCOA: Cocoa prices hit multi-month lows. On Friday, cocoa fell to 935 pounds a tonne-the lowest level since early February. In New York it hit 1,829 dollars a tonne, last seen at the start of May. However it ended the week higher. By Friday on the LIFFE, London's futures exchange, the price of cocoa for September delivery dropped to 948 pounds a tonne, from 991 pounds a week earlier.
On the New York Board of Trade (NYBOT), the September contract declined to 1,854 dollars a tonne, from 1,914 dollars the previous Friday.
COFFEE: Coffee prices dropped in London but climbed in New York. By Friday on the LIFFE, Robusta quality for September delivery retreated to 1,816 dollars a tonne, from 1,836 dollars one week earlier.
On the NYBOT, Arabica for September delivery advanced to 119.00 US cents a pound, from 117.70 cents.
GRAINS, SOYA: Grains and soya prices extended gains, lifted by strong demand and favourable weather conditions.
By Friday on the Chicago Board of Trade, the price of maize for September delivery rose to 3.32 dollars a bushel, from 3.27 dollars a week earlier.
Wheat for September delivery gained to 6.70 dollars a bushel, from 6.53 dollars.
August-dated soyabean meal-used in animal feed-climbed to 8.59 dollars, from 8.45 dollars.
On the LIFFE, the price per tonne of wheat for November delivery jumped to 145.00 pounds, from 133.75 pounds.
SUGAR: Sugar prices melted. "London is leading the way down and, despite oversold conditions, selling continues to flow in. This is mainly due to the availability of supplies with no apparent destination," Sucden analysts said.
By Friday on the LIFFE, the price a tonne of white sugar for October delivery sank to 280.20 pounds, from 299.80 pounds a week earlier.
On the NYBOT, the price of unrefined sugar for October delivery declined to 9.62 US cents a pound, from 10.23 cents a week earlier.
RUBBER: The price of rubber fell slightly in key producer Malaysia.
"Rubber prices are on the downtrend due to improved weather which brings in more crops and improves supply," said an official at a rubber producing firm.
"By the look of it, the rubber prices should stay positive as conditions are improving well thanks to the good weather conditions."
"All markets remained softer after mounting fears of a global credit crunch rippled through commodity markets," analysts at BaseMetals.com said yesterday.
Nervous speculators sold commodities amid big sell-offs across global equity markets Thursday and Friday, switching investments to the dollar and yen, which are seen as safe havens in times of financial instability.
OIL: World oil prices dived, with a barrel of Brent below 69 dollars for the first time since June, on concern that energy demand may weaken amid the US subprime crisis.
The New York contract had soared to an historic high of 78.77 dollars per barrel in trading last week, on news of declining crude stockpiles in the United States, the world's biggest consumer of energy.
Prior to their current price slump, oil futures had risen by more than 20 per cent during June and July on concerns over rising geopolitical tensions, falling US crude stocks, growing US demand for motor fuel and expectations that crude demand will rise strongly this year.
New York's main oil futures contract, light sweet crude for delivery in September, plummeted to 70.68 dollars a barrel, from 76.67 dollars a barrel.
GOLD: Gold prices dipped as the dollar rose. A stronger US unit hurts demand for dollar-denominated commodities, such as gold, because they become more expensive for buyers holding weaker-performing currencies.
On the London Bullion Market, gold fell to 668.50 dollars an ounce at Friday's late fixing, from 670.50 dollars a week earlier.
SILVER: Silver prices fell heavily Friday after steadying earlier in the week. Silver fell to 12.69 dollars an ounce Friday, the lowest level since July 6.
On the London Bullion Market, silver dropped to 12.69 dollars an ounce at Friday's late fixing, from 12.96 dollars a week earlier.
PLATINUM: Platinum prices hit a six-year low of 1,262.25 dollars an ounce. The white metal was also weighed down by easing fears about strike action in South Africa.
On the London Platinum and Palladium Market, platinum slipped to 1,269 dollars an ounce at the late fixing Friday, from 1,286 dollars a week earlier. Palladium declined to 349 dollars an ounce, from 364 dollars.
BASE METALS: The prices of major base metals dropped, with the exception of tin, which hit an all-time high above 17,000 dollars a tonne.
The price of tin, however, struck an historic peak owing to tight supplies of the base metal.
On the London Metal Exchange (LME) the price of tin for delivery in three months reached 17,050 dollars a tonne-the highest point since 1989 when it was re-introduced on the London market.
Three-month aluminium prices fell to 2,599.50 dollars a tonne, from 2,675 dollars.
Three-month nickel prices dropped to 26,100 dollars a tonne, from 28,600 dollars.
Three-month lead prices slid to 2,785.25 dollars a tonne, from 3,300 dollars.
Three-month zinc prices decreased to 3,250 dollars a tonne, from 3,410 dollars. Three-month tin prices rose to 16,352.50 dollars a tonne, from 16,237 dollars.
COCOA: Cocoa prices hit multi-month lows. On Friday, cocoa fell to 935 pounds a tonne-the lowest level since early February. In New York it hit 1,829 dollars a tonne, last seen at the start of May. However it ended the week higher. By Friday on the LIFFE, London's futures exchange, the price of cocoa for September delivery dropped to 948 pounds a tonne, from 991 pounds a week earlier.
On the New York Board of Trade (NYBOT), the September contract declined to 1,854 dollars a tonne, from 1,914 dollars the previous Friday.
COFFEE: Coffee prices dropped in London but climbed in New York. By Friday on the LIFFE, Robusta quality for September delivery retreated to 1,816 dollars a tonne, from 1,836 dollars one week earlier.
On the NYBOT, Arabica for September delivery advanced to 119.00 US cents a pound, from 117.70 cents.
GRAINS, SOYA: Grains and soya prices extended gains, lifted by strong demand and favourable weather conditions.
By Friday on the Chicago Board of Trade, the price of maize for September delivery rose to 3.32 dollars a bushel, from 3.27 dollars a week earlier.
Wheat for September delivery gained to 6.70 dollars a bushel, from 6.53 dollars.
August-dated soyabean meal-used in animal feed-climbed to 8.59 dollars, from 8.45 dollars.
On the LIFFE, the price per tonne of wheat for November delivery jumped to 145.00 pounds, from 133.75 pounds.
SUGAR: Sugar prices melted. "London is leading the way down and, despite oversold conditions, selling continues to flow in. This is mainly due to the availability of supplies with no apparent destination," Sucden analysts said.
By Friday on the LIFFE, the price a tonne of white sugar for October delivery sank to 280.20 pounds, from 299.80 pounds a week earlier.
On the NYBOT, the price of unrefined sugar for October delivery declined to 9.62 US cents a pound, from 10.23 cents a week earlier.
RUBBER: The price of rubber fell slightly in key producer Malaysia.
"Rubber prices are on the downtrend due to improved weather which brings in more crops and improves supply," said an official at a rubber producing firm.
"By the look of it, the rubber prices should stay positive as conditions are improving well thanks to the good weather conditions."