LONDON, Mar 1 (AFP) : Commodity prices diverged this week as traders tracked concerns over US economic growth, which boosted gold futures, and drought conditions in Brazil that again lifted coffee and sugar.
The US economy grew more slowly late last year than previously thought, but there was enough vigour that the Federal Reserve will likely continue reducing its stimulus programmeme, analysts said.
OIL: Crude futures steadied after sharp gains the previous week, as traders weighed up higher demand in the United States against concerns over the outlook for growth in the world's biggest economy.
Oil prices began the week higher, finding support from political turmoil in Ukraine and some oil-producing countries as well as from the return of cold weather in large parts of the United States.
They additionally won mid-week support from official data showing that US commercial crude oil supplies rose by only 100,000 barrels last week, one-eighth of the amount expected by analysts.
Prices headed south as the trading week closed out, owing to concerns over soft US economic data.
PRECIOUS METALS: Gold rose further, reaching a four-month high at $1,345.35 an ounce.
Sister metal silver also managed a four-month peak at $22.17 an ounce before profit-taking caused it to fall over the week.
BASE METALS: Copper futures dropped under $7,000 a tonne for the first time in three months on China growth concerns.
"Once again, metal markets have come under pressure amid fears about China's growth," Commerzbank said.
SUGAR: Prices hit the highest levels for nearly four months also on the back of drought conditions in Brazil.
Amid current conditions, Commerzbank said it was forecasting a supply deficit in the 2014/15 crop year.
By Friday on LIFFE, the price of a tonne of white sugar for delivery in May increased to $476.30 from $462.10 a week earlier.
On ICE Futures US, the price of unrefined sugar for delivery in May gained to 17.74 US cents a pound from 16.85 US cents.
COCOA: Prices retreated after a recent rally to 2.5 year highs caused by a tight supply situation.
"Global supply already failed to cover global demand in the past 2012/13 season," noted analysts at Commerzbank.
"For the 2013/14 crop year, another market deficit of 100 thousand tonnes is expected, mainly on the back of solid demand."
By Friday on LIFFE, London's futures exchange, cocoa for delivery in May dipped to £1,838 a tonne from £1,843 a week earlier.
On the ICE Futures US exchange, cocoa for May eased to $2,969 a tonne from $2,973
RUBBER: Prices dropped further on a lack of demand from major consumers China and India that came amid high stockpiles of rubber.
The Malaysian Rubber Board's benchmark SMR20 fell to 188.70 US cents a kilo from 191.25 cents the previous week.
© 2026 - All Rights with The Financial Express
