Commodities mostly slide as dollar races higher

FE Team | Published: October 05, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

LONDON, Oct 4 (AFP) : Commodity prices mainly sank this week as the dollar soared on strong US payrolls data, while many markets were also weighed down by abundant supplies and weak demand, dealers said.
Brent oil tumbled Friday to two-year troughs, gold carved out the lowest level so far this year, and cocoa slid on profit-taking from recent 3.5-year highs that were forged on output fears linked to Africa's Ebola outbreak.
The European single currency dived on Friday to $1.2501, its lowest level since late August 2012. A stronger greenback makes dollar-priced commodities more expensive for buyers using weaker currencies, which tends to dent demand and push prices lower.
OIL: Brent oil plunged Friday in reaction to the strong dollar, with sentiment also rocked this week after key crude exporter Saudi Arabia cut its prices.
The dollar rallied on news that a strong 248,000 net new positions were created in the United States in September, beating analyst expectations of 210,000 jobs after a disappointing 142,000 in August.
The US unemployment rate meanwhile fell to 5.9 per cent, the lowest level in six years.
Oil also slid Thursday after Saudi Arabia, the biggest producer in the OPEC oil cartel, announced lower prices for the fourth straight month in a bid to hold onto market share.
Brent slumped Friday to $91.48 a barrel, which was last witnessed in June 2012.
New York crude had tumbled Thursday to $88.18 -- a level last seen in April 2013.
PRECIOUS METALS: Gold fell below $1,200 per ounce for the first time this year, as robust US payrolls also dimmed haven investment demand, dealers said.
BASE METALS: Base or industrial metal prices fell, hurt by the stronger dollar and downbeat data from key consumer China.
Chinese manufacturing growth stalled in September, data showed Wednesday, as a sluggish property market complicates leaders' attempts to address a slowdown in the world's second-largest economy.
The official purchasing managers index (PMI) came in at 51.1 in September, unchanged from the previous month, the National Bureau of Statistics said in a statement.
COCOA: Prices slid from recent peaks as the Ebola outbreak showed no signs of spreading into key cocoa-producing nations in West Africa, which is home to most of the world's production.
Cocoa had soared the previous week to 3.5-year highs on fears the Ebola outbreak could reach Ghana and Ivory Cost, the two biggest producers of the commodity used to make chocolate. The market had rallied to £2,187 per tonne in London and $3,399 per tonne in New York.
SUGAR: The sugar market declined in line with most commodities.
By Friday on LIFFE, the price of a tonne of white sugar for delivery in December traded at $422.80 compared with $427.60 a week earlier.
On ICE Futures US, the price of unrefined sugar for March dipped to 16.21 US cents a pound from 16.42 US cents a week earlier.
COFFEE: Coffee prices however staged a modest rebound amid persistent worries over the supply outlook in key producer Brazil.
By Friday on ICE Futures US, Arabica for delivery in December rallied to 209.45 US cents a pound from 181.60 cents a week earlier.
RUBBER: Kuala Lumpur rubber prices retreated due to lack of buying interest from China.
The Malaysian Rubber Board's benchmark SMR20 stood at 141.85 US cents per kilo on Friday, down from 145.95 US cents the previous week.