Crude oil prices rose last week as data from the International Energy Agency (IEA) pointed to an oil market tighter than previously thought and after the United States reported heavy falls in crude and distillates stockpiles. Gold led precious metals higher late in the week after the dollar weakened on US trade deficit concerns. Coffee prices reached a fresh four-year peak and sugar the highest level for three and a half years.
The Commodities Research Bureau's index of 17 commodities rose to 285.70 points on Friday from 281.35 points a week earlier.
GOLD: Gold prices rose after falling close to the 410-dollar barrier earlier in the week.
Prices were hit initially by the strength of the US currency and speculation that the International Monetary Fund (IMF) was poised to sell some of its reserves to provide debt relief for the world's poorest countries.
Gold prices fell to 411.10 dollars per ounce on Tuesday - the lowest level since October 13 - before rebounding to almost 419 dollars by Friday.
"Gold rallied on a sell-off in US dollars following the US trade balance," UBS analyst John Read said.
The US Commerce Department said Thursday that the US December trade deficit narrowed to 56.4 billion dollars in December compared with analyst forecasts for 56.9 billion dollars.
However, analysts said that despite the slight improvement for the month, the 2004 figures as a whole were worrying, showing a record trade deficit of 617.7 billion dollars or 5.3 percent of gross domestic product compared with a deficit of 496.5 billion dollars or 4.5 percent of GDP in 2003.
A weaker dollar makes gold - which is priced in the US currency on world markets - cheaper to buyers using other currencies.
On the London Bullion Market, gold prices stood at 418.85 dollars per ounce at the late fixing on Friday from 415.90 dollars a week earlier.
SILVER: Silver prices finished the week close to the symbolic 7.0 dollars-per-ounce mark, helped by rebounding gold.
Silver "saw a solid bounce (on Thursday) clearing the top end of its recent 6.40/6.80 dollar range and pushing on to the challenge of a 7.0 dollar level", said an analyst James Moore.
"With gold and base metals looking steady for the moment and the dollar on a weak footing it seems silver could extend its gains in the coming sessions," he added.
Silver prices rose to 6.980 dollars per ounce at the late fixing on Friday from 6.655 dollars a week earlier.
PLATINUM AND PALLADIUM: Palladium prices failed to gain from gold's rally, unlike its sister metal platinum.
"Palladium was the only metal to fail to post gains" on Thursday, Moore said, adding that speculators would keep the price in the 175/180 dollar range.
Speculative buying would meanwhile limit platinum's gains, he added.
By Friday, platinum prices rose to 870 dollars per ounce on the London Platinum and Palladium Market from 864 dollars a week earlier.
Palladium prices declined to 181 dollars per ounce from 182 dollars the previous week.
BASE METALS: Base metals prices mainly rose due to the dollar's fall late in the week.
Earlier "prices were slipping but on Thursday afternoon there was a sudden and dramatic turnaround and prices rose sharply as the market reacted to the US trade deficit number", Societe Generale analyst Stephen Briggs said.
By Friday, three-month copper prices rose to 3,068 dollars per tonne on the London Metal Exchange from 2,997 dollars a week earlier.
Three-month aluminium prices rose to 1,837 dollars per tonne from 1,829 dollars.
Three-month nickel prices climbed to 15,200 dollars per tonne from 14,700 dollars.
Three-month lead prices declined to 909 dollars per tonne from 925 dollars.
Three-month zinc prices traded at 1,326 dollars per tonne from 1,296 dollars.
Three-month tin prices fell to 7,930 dollars per tonne from 7,985 dollars.
OIL: World oil prices ended the week higher despite falling early on as warmer weather in key markets continued to ease demand for heating fuel.
But oil futures surged by over a dollar Thursday after the International Energy Agency (IEA) raised its estimate for demand growth this year by 80,000 barrels per day to 1.52 million barrels.
The report from the IEA was "undoubtedly bullish" for oil prices "given the revised demand and production forecasts" for 2005, Global Insight analyst Simon Wardell said.
Prices were boosted also by US data that showed heavy falls in crude and distillates stockpiles, and a smaller than expected rise in gasoline supplies, analysts said.
The US Department of Energy (DoE) reported crude stockpiles had fallen 1.0 million barrels to 294.3 million during the week ending February 4 - and distillates, including heating fuel, fell by 3.0 million barrels to 115.6 million.
By Friday New York's light sweet crude for delivery in March rose to 47.17 dollars per barrel from 46.80 dollars the previous week.
In London, Brent North Sea crude for March delivery stood at 44.68 dollars per barrel compared with 44.34 dollars a week earlier.
RUBBER: Rubber futures rose this week due to strong activity in Japan, while supply fell amid lower output due to religious holidays in leading producer countries and the Chinese New Year.
"Prices have been rising all week thanks to Japan where the market has been very active," one London trader said.
Major producers Indonesia, Malaysia and Thailand are currently experiencing the so-called 'wintering', which refers to the low harvest season between February and April.
In Osaka, the RSS 3 March contract rose to 133.50 US cents on Friday from 132.90 cents a week earlier.
Singapore's RSS 3 March contract stood at 126 US cents on Friday, compared with 124.75 cents last week.
COCOA: Cocoa prices hit two-month high points as harvest concerns led to strong speculative buying, before profit-taking set in.
Prices reached 889 pounds per tonne in London and 1,621 dollars per tonne in New York on Monday, the highest levels since December. "Sentiment in the market is currently governed by concerns that the 2004/05 crop will be smaller than the 2003/04," Refco analyst Ann Prendergast said.
"The market has a moderately bullish bias but is waiting on final results of the Ivory Coast main crop."
On LIFFE, London's futures exchange, the price of cocoa for March delivery rose to 860 pounds per tonne on Friday from 856 pounds a week earlier.
On the CSCE, the New York futures market, the March contract traded at 1,561 dollars per tonne on Friday, from 1,569 dollars the previous week.
COFFEE: Coffee futures reached fresh four-year high points in New York and two-year peaks in London due to celebrations in leading producers Brazil and Vietnam, analysts said.
Arabica for March delivery reached as high as 114.70 US cents in New York on Thursday and Robusta quality coffee hit 844 dollars in London on Monday.
Coffee prices jumped as Brazil enjoyed its Carnival week and Vietnam celebrated the Lunar New Year. They have been rising strongly on anticipation of a production deficit for the 2005-2006 season. On New York's CSCE market, Arabica for March delivery jumped to 114.20 cents per pound on Friday, from 104.90 cents the previous week.
On LIFFE, Robusta quality for March delivery gained to 824 dollars per tonne on Friday from 827 dollars a week earlier.
COTTON: Cotton prices rose following a rise in US exports and forecasts of increased global demand.
The US Department of Agriculture said exports rose 12 percent to 417,200 bales in the week ending February 3, a drop of 39 percent compared with the average for the previous four weeks.
"US Department of Agriculture exports sales were at marketing year highs," Prendergast said.
Meanwhile the USDA revised upwards by 1.4 million bales its estimate for world consumption in 2004/05. New York's March contract rose to 45.15 cents per pound by Friday from 43 cents a week earlier.
The Cotton Outlook Index of physical cotton stood at 50.50 cents on Thursday from 50.70 cents the previous week.
GRAINS AND SOYA: Grains and soya prices climbed on forecasts of future lower US stockpiles of wheat and after strong US export sales of the cereal and soya.
The US Department of Agriculture said that its stocks of wheat should reach 15.18 million tonnes at the end of May compared with an earlier forecast of 15.86 million tonnes.
The United States meanwhile sold 473,000 tonnes of wheat and 550,000 tonnes of soya last week.
On LIFFE, wheat for March delivery was quoted at 67 pounds per tonne on Friday from 65.75 pounds the previous week.
In Chicago, the price of wheat for March delivery rose to 295.75 cents per bushel Friday from 290.50 cents a week earlier.
Maize for March delivery stood at 197.75 cents per bushel on Friday from 196 cents the previous Friday.
Soyabeans for March delivery climbed to 519.75 cents per bushel on Thursday from 515.50 cents the previous week.
March-dated soyabean meal - used in animal feed - advanced to 156.50 dollars per tonne compared with 154.70 dollars.
SUGAR: Sugar prices rose to the highest level for three and a half years in London and for three and a half months in New York on strong Pakistan demand.
Prices hit as high as 276.80 dollars per tonne on Friday.
"Sugar galloped to new highs on the strength of enhanced consumer interest from Pakistan which confirmed a 200,000-tonne purchase," Prendergast said.
By Friday on LIFFE, the price of a tonne of white sugar for May delivery climbed to 269 dollars on Friday from 266 dollars a week earlier.
On the CSCE in New York, a pound of unrefined sugar for March delivery advanced to 9.10 cents on Friday from 9.07 cents the previous week.
WOOL: Wool prices edged up in leading producer Australia on Chinese and European buying.
"China remains the dominant player and European buyers came to the fore on Wednesday," the Australian Wool Industries Secretariat said in a weekly market report.
The Australian Eastern index stood at 7.45 Australian dollars per kilo on Thursday from 7.41 dollars a week earlier.
The British Wooltops index rose to 404 pence from 396 pence the previous week.
Comments
Comments are closed.