Metal prices mainly fell last week as the dollar rallied, while oil slipped as the supply situation improved in the United States, the world's biggest consumer of energy. A stronger US unit decreases demand for dollar-denominated commodities, such as gold, since they become more expensive for buyers using other currencies.
GOLD: Gold prices fell to the lowest level for more than a month. The precious metal "began a path of erosion as the dollar started a broad recovery against all currencies," BNP Paribas analyst David Thurtell said.
Gold slid to 664.33 dollars an ounce on Thursday, the lowest level since April 4. On the London Bullion Market, gold sank to 669 dollars an ounce at Friday's late fixing, from 688.80 dollars a week earlier.
SILVER: Silver prices struck a two-month low in the wake of gold's slide. Gold's sister metal, used widely by the jewellery sector but also in the dentistry and photographic industries, fell briefly below 13 dollars an ounce for the first time since March 15.
On the London Bullion Market, silver prices slid to 13.04 dollars an ounce at Friday's late fixing, from 13.40 dollars a week earlier.
PALLADIUM AND PLATINUM: The price of palladium hit a one-month low, while platinum resisted the declines suffered by other metals. Platinum continued to win support from growing interest in the recently launched Exchange-traded fund products.
ETF products, the latest of which were launched this week in Switzerland, allow traders to invest money in the commodities sector, without trading on the futures market and committing themselves to the long-term delivery of the physical product.
ETF products tend to generate a sharp increase in demand by investors, which pushes up the price of the underlying physical asset. On the London Platinum and Palladium Market, platinum rose to 1,324 dollars an ounce at the late fixing Friday, from 1,311 a week earlier. Palladium decreased to 363 dollars an ounce, from 374 dollars.
BASE METALS: Base metals mostly slumped as speculators booked profits won recently. "After strong gains across the board in recent weeks a 'healthy' correction is probably warranted and would confirm whether buying appetite at the lower levels exists, which we believe it does," UBS analyst Robin Bhar said.
The previous week, nickel and lead had struck record highs and copper neared a one-year peak owing to tight supplies. On Friday, three-month copper prices tumbled to 7,805 dollars a tonne on the London Metal Exchange, from 8,161 dollars a week earlier.
Three-month aluminium prices firmed to 2,836 dollars a tonne from 2,830 dollars. Three-month nickel prices declined to 50,200 dollars a tonne from 50,700 dollars. Three-month lead prices eased to 2,070 dollars a tonne from 2,080 dollars. Three-month zinc prices fell to 3,995.00 dollars a tonne from 4,084.50 dollars. Three-month tin prices sank to 13,900 dollars a tonne from 14,225 dollars.
OIL: World oil prices drifted lower as traders took heart from growing energy stockpiles in the United States, which mostly overshadowed ongoing unrest in key crude producer Nigeria. Crude futures fell after the US Department of Energy reported a surprisingly strong build-up in crude stocks of 5.6 million barrels during the week that ended May 4.
The DoE report on Wednesday also showed a gain of 400,000 barrels in gasoline or petrol reserves - the first rise since early February despite market concerns over tight supplies. "Price weakness continues as a big increase in (US) crude oil inventories curbs sentiment," Barclays Capital analyst Kevin Norrish said.
Prices won back some ground later in the week on concerns about unrest in Nigeria, where output has been slashed by about one quarter owing to a series of attacks on energy facilities in the crude-rich Niger delta. For its part, the International Energy Agency warned of tighter global energy supplies and eyed current unrest in Nigeria, the world's sixth-biggest crude exporter.
The Paris-based IEA said that global oil demand would dip slightly in 2007 but cautioned that oil and petrol markets could tighten, leading to further price rises. By Friday in London, a barrel of Brent North Sea crude for delivery in June dipped to 66.34 dollars, from 66.57 dollars a week earlier.
In New York, a barrel of crude for delivery in June slid to 61.84 dollars from 63.13 dollars.
GRAINS AND SOYA: Grains and soya prices were mixed after a roller-coast week. The commodities were "sharply oversold" after the latest US government data on Wednesday, AG Edwards analyst Victor Lespinasse said. The United States Department of Agriculture said it expects output of maize to rise by 18 percent during the 2006/07 harvest season, compared with 2005/06.
"The USDA report was a catalyst" for prices to fall before firming later on in the week, Lespinasse added. By Friday on the Chicago Board of Trade, the price of maize for July delivery fell to 3.66 dollars a bushel, from 3.91 dollars a week earlier.
Wheat for July delivery dropped to 4.91 dollars a bushel, from 4.95 dollars. July-dated soyabean meal - used in animal feed - climbed to 7.65 dollars, from 7.48 dollars. On the Liffe, London's futures exchange, the price per tonne of wheat for November delivery gained to 98.25 pounds, from 95.15 pounds the previous week.
COCOA: Cocoa prices hit the highest level for almost four years in London. "Investors are concerned about West Africa's crops after severely dry and hot conditions in the first three months of the year," Sucden analyst Michael Davies said.
Cocoa reached 1,087 pounds a tonne in London on Thursday - a level last seen in September 2003. By Friday on the Liffe, the price of cocoa for July delivery jumped to 1,073 pounds a tonne, from 1,025 pounds a week earlier. On the New York Board of Trade (NYBOT), the July contract increased to 1,931 dollars a tonne, from 1,857 dollars.
COFFEE: Coffee prices rebounded as profit-taking eased amid tight supplies. The previous week prices had tumbled to a seven-month low in New York. Despite the rally, "market participants are concerned funds may liquidate their position," Davies said. By Friday on the Liffe, Robusta quality for July delivery jumped to 1,640 dollars a tonne, compared with 1,593 dollars a week earlier. On the NYBOT, Arabica for July delivery gained to 108.50 US cents a pound, from 105.90 cents.
SUGAR: Sugar prices extended gains in London on buying by speculators. Despite the rise, "market sentiment remains bearish, with an abundant supply of sugar," Davies said.
By Friday on the Liffe, the price per tonne of white sugar for August delivery rallied to 332.70 dollars, from 316.90 dollars a week earlier. On the NYBOT, the price of unrefined sugar for July delivery eased to 9.25 US cents a pound, from 9.32 cents.
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