Commodity prices end mixed

Commodity prices traded mixed last week amid caution over future demand for raw materials despite positive economic data from the United States and Europe, where recession ended for some countries. Sugar prices reached a 28-year peak, however, pushed higher by tight supplies of the commodity.
OIL: Oil prices fell from a week earlier as the market focused on the outlook for crude demand, which analysts said was not rosy despite improving economic data from around the globe. "Brent should slip back to 72 dollars and eventually 70 dollars, once the euphoria subsides," said VTB Capital commodities analyst Andrey Kryuchenkov in London.
Better-than-expected growth data for the 16-nation eurozone economy published Thursday gave some hope of a stronger pick-up in crude demand than suggested by experts. The eurozone's GDP contracted a mere 0.1 percent in the second quarter after a 2.5 percent drop in the January-March period. Germany and France, the eurozone's two largest economies, both posted growth of 0.3 percent, surprising economists and officially confirming the end of the recession in the two countries.
Oil prices had also risen on Wednesday after the Federal Reserve said economic activity was "levelling out." The policymaking Federal Open Market Committee (FOMC) maintained ultra-low interest rates, but said it would gradually end a programme of Treasury bond purchases after completing a 300-billion-dollar scheme in October. The US economy is the world's largest energy consumer and an economic recovery is seen as key to boosting global oil demand after the recession.
However latest government data on US energy reserves showed oil demand remained weak. The US Department of Energy on Wednesday said crude inventories rose by 2.5 million barrels to 352 million barrels in the week ended August 7, more than triple the amount expected by analysts. It was the third week running of higher crude stockpiles.
On Wednesday, the International Energy Agency gave a cool assessment of so-called "green shoots" of economic growth, saying that oil demand was lagging behind inconclusive signs of global recovery from the economic crisis. Demand this year would be far weaker than last year and an unexpectedly weak rally next year would fall far short of compensating for this, the IEA said.
The broad findings of the IEA report chimed with the overall assessment of the Organisation of Petroleum Exporting Countries which reported Tuesday that world oil demand would decline slightly this year but begin to grow in 2010. Oil prices struck record peaks above 147 dollars a barrel in July 2008 on worries about potential supply disruptions. But over the past 12 months, prices nose-dived, striking 32 dollars in December before clawing back ground in recent months.
By Friday on London's InterContinental Exchange (ICE), Brent North Sea crude for delivery in September dropped to 73.74 dollars a barrel from 74.33 a week earlier. On the New York Mercantile Exchange (NYMEX), light sweet crude for September slipped to 70.01 dollars a barrel from 71.43 dollars one week earlier.
PRECIOUS METALS: Gold prices edged lower. By late Friday on the London Bullion Market, gold fell to 953.50 dollars an ounce from 956 dollars a week earlier. Silver gained to 14.98 dollars an ounce from 14.65 dollars.
On the London Platinum and Palladium Market, platinum grew to 1,267 dollars an ounce at the late fixing on Friday from 1,260 dollars. Palladium advanced to 277.50 dollars an ounce from 271 dollars.
BASE METALS: Copper, nickel and zinc struck multi-month highs. "Market sentiment continued to gain supportive traction from better-than-expected economic data... as well as dollar weakness," said analysts at Barclays Capital. A weaker dollar pushes up demand for dollar-denominated commodities when they become cheaper for buyers holding rival currencies.
By Friday on the London Metal Exchange, copper for delivery in three months jumped to 6,373 dollars a tonne from 5,969 dollars a week earlier.
-- Three-month aluminium rose to 2,040 dollars a tonne from 1,991 dollars.
-- Three-month lead climbed to 1,910 dollars a tonne from 1,832 dollars.
-- Three-month tin increased to 15,050 dollars a tonne from 14,449 dollars.
-- Three-month zinc advanced to 1,871 dollars a tonne from 1,834 dollars.
-- Three-month nickel rallied to 20,625 dollars a tonne from 19,350 dollars.
SUGAR: Sugar prices hit a 28-year high of 589.90 pounds a tonne in London and they also reached the highest point since 1983 in New York. Global sugar prices are likely to stay high in the coming year as India, the world's largest consumer of the commodity, reels from poor monsoon rains that will force it to rely on imports.
"With the monsoon weak, India's sugar imports could rise to six to seven million tonnes in 2009-10 to meet local consumption demands of 26 million tonnes," said Mehul Agrawal, sugar analyst at equity research firm Sharekhan. "Each time India enters the global market, prices could spike." By Friday on Liffe, London's futures exchange, the price of a tonne of white sugar for delivery in October gained to 589.40 pounds from 536 pounds a week earlier. On the New York Board of Trade (NYBOT), the price of unrefined sugar for October climbed to 22.18 US cents a pound from 20.46 cents.
GRAINS AND SOYA: Maize prices rose while soya and wheat dropped. By Friday on the Chicago Board of Trade, maize for delivery in December climbed to 3.27 dollars a bushel from 3.26 dollars a week earlier. November-dated soyabean meal - used in animal feed - fell to 9.95 dollars from 10.38 dollars. Wheat for December slipped to 5.05 dollars a bushel from 5.16 dollars.
COCOA: Cocoa prices rebounded in London and New York. By Friday on Liffe, the price of cocoa for delivery in September rose to 1,827 pounds a tonne from 1,763 pounds a week earlier. On the NYBOT, the September cocoa contract gained to 2,880 dollars a tonne from 2,841 dollars.
COFFEE: Coffee prices retreated. By Friday on Liffe, Robusta for delivery in November dropped to 1,429 dollars a tonne from 1,476 dollars for the expired September contract a week earlier. On the NYBOT, Arabica for September slipped to 132.90 US cents a pound from 134.90 cents.
RUBBER: Malaysian rubber prices edged up on buying support as investors turned upbeat about the outlook for the global economy. On Friday, the Malaysian Rubber Board's benchmark SMR20 rose to 192.80 US cents a kilo from 185.10 US cents a week earlier.