A number of commodities saw their prices fall last week owing to a steadier dollar, but there were record highs for base metals nickel and lead. On Friday, the Commodities Research Bureau's index of 17 commodities decreased to 314.63 points, from 319 points the previous week.
GOLD: Gold prices fell as the dollar stemmed heavy losses. "Dollar swings have again had a large influence over the movements of the precious complex," said James Moore, an analyst for specialist website TheBullionDesk.com.
The previous week, amid a sliding dollar, gold had climbed to the highest level for three and a half months. A weak US currency makes dollar-denominated products cheaper for buyers using other currencies, pushing up demand. On the London Bullion Market, gold prices dropped to 637.40 dollars per ounce at Friday's late fixing, from 648.75 dollars one week earlier.
SILVER: Silver prices retreated after striking a near eight-month high at the start of the week. Silver reached 14.18 dollars per ounce - the highest point since May 15. On the London Bullion Market, silver prices slipped to 13.84 dollars per ounce at Friday's fixing, from 13.85 dollars the previous week.
PALLADIUM AND PLATINUM: Platinum prices extended losses, while palladium edged upwards. "Platinum survived its early dip to a five-week low of 1,094 dollars (per ounce)," Moore said. On the London Platinum and Palladium Market, platinum dropped to 1,117 dollars per ounce at the late fixing Friday, from 1,156 dollars the previous week. Palladium rose to 329.50 dollars per ounce on Friday from 326 dollars one week earlier.
BASE METALS: Nickel and lead prices enjoyed all-time highs owing to tight supplies. However, nickel ended the week lower. On Tuesday, nickel reached 34,500 dollars per tonne, the highest reading since it began trading on the London Metal Exchange (LME) in 1979. Nickel, used to increase malleability and to prevent corrosion, has leapt 160 percent since the start of 2006.
Global mining giant Anglo American meanwhile said Thursday that it had approved the construction of facilities to mine nickel in Brazil. The Barro Alto project will cost about 1.2 billion dollars (903 million euros) and production of the metal is expected to start in 2010. The price of lead meanwhile reached 1,758 dollars per tonne on Tuesday, the highest reading since the metal began trading in London in 1953. Lead is used widely in the manufacturing of batteries.
"Lead set a fresh all-time high... buoyed by LME lead inventories falling to their lowest levels in 2006," Barclays Capital analyst Sudakshina Unnikrishnan said. On Friday, three-month copper prices fell to 6,846 dollars per tonne on the LME from 6,976 dollars the previous week. Three-month aluminium prices rose to 2,815 dollars per tonne from 2,746 dollars.
Three-month nickel prices eased to 33,955 dollars per tonne from 34,250 dollars. Three-month lead prices jumped to 1,731.50 dollars per tonne from 1,683 dollars. Three-month zinc prices dropped to 4,270 dollars per tonne from 4,400 dollars. Three-month tin prices increased to 10,975 dollars per tonne from 10,595 dollars a week earlier.
OIL: World oil prices steadied, supported by threats of further attacks to oil facilities in Nigeria, a drop in US energy inventories and expectations that Opec will next week decide to further cut its output A militant group in southern Nigeria, notorious for previous hostage-takings, claimed responsibility on Friday for Thursday's attack on an Agip oil facility in which four foreigners were kidnapped and at least one person killed.
"Fighters of the Movement of the Emancipation of the Niger Delta (MEND), attacked and destroyed the Agip installation in Brass in the Niger delta," the group said in an e-mail statement to AFP. They threatened to launch further attacks on Nigeria's oil industry in "the following days".
The attack in Nigeria came a day after official data had shown that US energy inventories dropped in the week ended December 1 as winter temperatures took hold in the US north-east.
The Organisation of Petroleum Exporting Countries was meanwhile likely to propose a further production cut of 1.0-1.5 million barrels per day to support prices, Indonesian Energy Minister Purnomo Yusgiantoro said Friday.
At its most recent meeting in Qatar in October, Opec approved a cut in its output quota of 1.2 million barrels per day to stem falling prices, which have dropped from record highs above 78 dollars in July and August.
At about 1530 GMT on Friday in New York, a barrel of crude for delivery in January rose to 63.55 dollars per barrel from 62.82 dollars the previous week. In London, a barrel of Brent North Sea crude for delivery in January stood at 63.90 dollars per barrel, down from 64.05 dollars.
RUBBER: Rubber prices rose strongly this week after key producer Thailand threatened to intervene in the market following recent losses. "Prices were supported by fund manager activity and still the feeling that there may be some support at government level," Corrie Maccoll trader Rashid Ahmed said. "The Thai government statement continued to play a role. So far they haven't actually intervened, they just said they would, but it certainly helped push prices up."
On TOCOM, Tokyo's commodity exchange, natural rubber for May delivery rose to 212.20 yen per kilogramme on Friday, from 191.70 yen a week earlier. Singapore's RSS 3 April contract climbed to 175.75 US cents per kilogramme on Friday, from 160 US cents a week earlier.
COCOA: Cocoa prices gained further on unrest in leading producer Ivory Coast. "Reports of slow bean arrivals in Ivory Coast also helped lift prices," Sucden analyst Michael Davies said. Two people were killed on Tuesday in the west African country during opposition protests against President Laurent Gabgbo's handling of a toxic waste poisoning scandal, officials said.
On the Liffe, London's futures exchange, the price of cocoa for March delivery increased to 884 pounds per tonne on Friday, from 845 pounds a week earlier.
On the New York Board of Trade (NYBOT), the March contract gained to 1,635 dollars per tonne on Friday, from 1,571 dollars the previous week.
COFFEE: Coffee prices rose in London and New York. "London Robusta coffee gained ground as a result of speculative and fund buying," Davies said. "There was also news that there could be a drought in early 2007 in Vietnam's key coffee growing province of Daklak." On Liffe, Robusta quality for January delivery increased to 1,452 dollars per tonne on Friday, from 1,420 dollars a week earlier. On NYBOT, Arabica for March delivery climbed to 126.25 cents per pound on Friday, from 123.90 cents the previous week.
SUGAR: Sugar prices eased. "The sugar market remains under pressure from the prospect of a large surplus in 2006/07," Davies said. By Friday on Liffe, the price of a tonne of white sugar for March delivery declined to 352.50 dollars, compared with 370 dollars a week earlier. On NYBOT, the price of unrefined sugar for March delivery decreased to 11.40 US cents per pound, from 12.19 US cents the previous week.
GRAINS AND SOYA: Grains and soya prices slid as speculative funds exited the market. "Everything was down because the major funds that helped the markets so far decided to take some profits as the end of the year," Allendale analyst Joe Victor said. Maize had hit a ten-year peak the previous week on strong demand and low stocks.
On the Chicago Board of Trade, the price of wheat for March delivery fell to 4.95 US dollars per bushel on Friday, from 5.21 dollars a week earlier. Maize for March delivery dropped to 3.72 dollars per bushel on Friday, from 3.87 dollars the previous week.
January-dated soyabean meal - used in animal feed - decreased to 6.77 dollars, from 6.81 dollars the previous week. On the Liffe, the price of a tonne of wheat for January delivery slipped to 93.25 pounds on Friday, from 97.00 pounds.
COTTON: Cotton prices recoiled in New York owing to a strong drop in US exports. The United States exported 136,000 bales of cotton in the week ended November 30 - a drop of 73 percent compared with the previous week, government data showed.
On the NYBOT, the March contract slipped to 52.90 US cents per pound on Friday, from 53.35 US cents the previous week. The Cotton Outlook Index of physical cotton jumped to 58.45 US cents on Thursday, from 57.85 cents a week earlier.
WOOL: Wool prices steadied, failing to rally owing to a strong Australian dollar which makes buying the commodity more expensive for buyers outside leading producer Australia.
The Eastern index stood at 8.25 Australian dollars per kilo on Thursday, unchanged from the previous week. The British Wooltops index remained at 440 pence on Thursday, compared with the previous week.
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