Commodity markets buoyed by mounting Ukraine crisis

FE Team | Published: August 31, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

LONDON, Aug 30 (AFP) : Crude oil and wheat prices were lifted this week by intensifying concerns over the Ukraine crisis, while gold advanced as many investors sought shelter from geopolitical tensions.
Many commodities also rose on bright economic growth data in the United States, a top consumer of many raw materials including crude oil.
The country's economy expanded at an annual rate of 4.2 per cent in the second quarter, up from the prior growth estimate of 4.0 per cent, official data showed.
OIL: Global oil prices climbed this week, supported by renewed Russia-Ukraine tensions and stronger-than-expected US economic growth, analysts said.
The market also gained ground this week on the back of elevated supply risks linked to simmering tensions in oil producers Iraq and Libya. However, gains were capped by abundant crude oil supplies.
By Friday on London's Intercontinental Exchange, Brent North Sea crude for delivery in October rose to $102.89 a barrel from $102.15 one week earlier.
On the New York Mercantile Exchange, West Texas Intermediate or light sweet crude for October stood at $95.40 per barrel compared with $93.11.
GRAINS AND SOYA: Wheat hit a three-week peak Thursday, partly on the back on tensions between key exporters Ukraine and Russia.
"The further escalation of the Ukraine-Russia conflict drove the wheat price on the CBOT to a three-week high of $5.79 per bushel," wrote Commerzbank analysts in a note.
PRECIOUS METALS: The price of gold hit a one-week high at $1,296.65 per ounce on haven demand, dragging sister metal silver to a two-week peak of $19.90.
BASE METALS: Base or industrial metal prices mainly sank as market participants also fretted over the impact of the Ukraine crisis.
By Friday on the London Metal Exchange, copper for delivery in three months slid to $6,960 a tonne from $7,058 a week earlier.
COCOA: Prices scored to another three-year pinnacle in New York, lifted by solid global demand for the commodity that is mainly used to make chocolate.
New York cocoa futures to $3,300 per tonne on Wednesday, reaching the highest level since May 2011.
COFFEE: Prices scaled one-month peaks on industry forecasts of a low crop from top producer Brazil.
By Friday on ICE Futures US, Arabica for delivery in December rallied to 200.80 US cents a pound compared with 188.55 cents a week earlier.
SUGAR: Futures dipped after the International Sugar Organization (ISO) said it saw no support for higher price levels, and predicted that supply would exceed demand for the fifth successive year.
The market was likely to witness a global surplus of 1.3 million metric tonnes for the 2014/2015 crop year, the industry body said.
RUBBER: Prices in Kuala Lumpur fell influenced by weak share and oil prices and top rubber producer Thailand's decision to sell its stockpile.
The Malaysian Rubber Board's benchmark SMR20 ended at 163.45 US cents per kilo, down from 166.65 cents a week earlier.