Oil and base metal prices gained last week as positive US and Chinese economic data fuelled higher demand expectations, according to analysts. Prices lost some of the gains late on however after official figures Friday revealed that US jobs growth had slowed in July. The Labour Department said the United States added 162,000 jobs last month, well below the 175,000 expected on average by analysts - weighing on gold futures.
The US unemployment rate meanwhile fell to a better-than-expected 7.4 percent.
OIL: World oil prices rallied, with Brent crude reaching a near four-month high above $110 a barrel before giving way to profit-taking in the wake of Friday's US employment data. Prices had won support in recent days from US and Chinese economic numbers as well as from growing concerns about supply disruptions in the Middle East and Africa, traders said.
"Crude oil prices slid lower (Friday)... due to some profit taking," said Myrto Sokou, senior research analyst at Sucden brokers. "Brent fell... after surging above the $110 level yesterday (Thursday) for the first time since April 2013, showing strong upside momentum after robust PMI manufacturing data from the US and eurozone," she added. China's official PMI also showed a surprise increase - a rare piece of positive economic data from the Asian economic power, which has been slowing in recent months.
"Crude prices have reacted to global growth, with both US and China the top two largest users of crude," Kelly Teoh, market strategist at IG Markets Singapore, said in a note to clients. "It is clear the Chinese government is doing what it can to keep the economy going and it will not allow growth to miss the seven percent target," Teoh said. Separate data this week showed second-quarter US gross domestic product grew 1.7 percent, above the 1.1-percent pace expected by analysts. However, the report also included a steep downgrade in first-quarter GDP growth, which is now estimated at 1.1 percent instead of 1.8 percent.
Investors were keeping a close watch also over potential supply disruptions in the Middle East and Africa. "Protests in Libya's oilfields, insurgents targeting Iraq's pipeline, technical problems and oil thefts in Nigeria (have) brought about worries about the availability of supplies," said Lee Chen Hoay, investment analyst at Phillip Futures. By late Friday on London's Intercontinental Exchange, Brent North Sea crude for delivery in September jumped to $108.92 a barrel from $106.91 a week earlier. On the New York Mercantile Exchange, West Texas Intermediate or light sweet crude for September climbed to $106.81 a barrel from $104.36 a week earlier.
PRECIOUS METALS: Gold futures retreated, giving up recent gains on an overall improving US economic outlook despite Friday's mixed jobs data. "The gold price came under noticeable pressure on the back of again surprisingly good US economic data and consequently firm equity markets," said analysts at Commerzbank. Gold is seen as a haven investment in times of economic turbulence. By late Friday on the London Bullion Market, the price of gold dropped to $1,309.25 an ounce from $1,331 a week earlier. Silver fell to $19.46 an ounce from $20.02. On the London Platinum and Palladium Market, platinum gained to $1,436 an ounce from $1,428. Palladium dipped to $730 an ounce from $731.
BASE METALS: Base or industrial metal prices rebounded. "Surprisingly positive economic data in the US and China give metal prices a boost," said Commerzbank analysts. By Friday on the London Metal Exchange, copper for delivery in three months rose to $7,063 a tonne from $6,873 a week earlier.
--- Three-month aluminium climbed to $1,822 a tonne from $1,802.50.
--- Three-month lead grew to $2,123 a tonne from $2,059.
--- Three-month tin gained to $21,030 a tonne from $19,302.
--- Three-month nickel increased to $13,982 a tonne from $13,900.
--- Three-month zinc advanced to $1,881.25 a tonne from $1,862.
--- Rain, frost impacts soft commodity prices -
COCOA: Prices extended losses as rainfall in Ivory Coast, the world's top cocoa producer, increased supply expectations. By Friday on Liffe, London's futures exchange, cocoa for delivery in September fell to £1,569 a tonne from £1,592 a week earlier. On New York's NYBOT-ICE exchange, cocoa for September dropped to $2,294 a tonne from $2,352.
COFFEE: Futures dropped further on the prospect of a record harvest in leading producer Brazil. "The brief lift that a Brazilian frost scare offered markets in the latter half of last week quickly passed on subsequent reports of minimal damage," said agricultural commodities report, The Public Ledger. By Friday on NYBOT-ICE, Arabica for delivery in September slid to 117.05 US cents a pound from 123.75 cents a week earlier. On Liffe, Robusta for November dropped to $1,857 a tonne from $1,935.
SUGAR: Prices improved on recent gains thanks to supply concerns. "The frost which hit the southern growing regions in Brazil last week may well have caused significant damage to the sugarcane crop there," said analysts at Commerzbank. "The Brazilian agriculture research company Datagro believes that 65 million tonnes or a fifth of the plants still in the fields have suffered frost damage." By Friday on NYBOT-ICE, the price of unrefined sugar for delivery in October grew to 16.74 US cents a pound from 16.42 cents a week earlier. On Liffe, the price of a tonne of white sugar for October gained to $487.90 from $480.80.
GRAINS AND SOYA: Maize and soya prices fell on high supply expectations, while wheat futures grew on firm demand, traders said. By Friday on the Chicago Board of Trade, November-dated soyabean meal - used in animal feed - dropped to $12.05 a bushel from $12.28 a week earlier. Maize for delivery in December slipped to $4.68 a bushel from $4.76. Wheat for September climbed to $6.64 a bushel from $6.50.
RUBBER: Prices retreated on concerns of weak demand from top consumer China, traders said.The Malaysian Rubber Board's benchmark SMR20 fell to 223.90 US cents a kilo from 225.90 cents a week earlier.
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