Oil prices flirted with 50 dollars a barrel in New York this week amid freezing temperatures in the United States, while markets worried about a possible further output cut from Opec later this month. Among soft commodities, sugar reached the highest level for three and a half years in London on expectations of a rise in Asian demand. The Commodities Research Bureau's index of 17 commodities eased to 284.00 points on Friday from 284.41 points a week earlier.
GOLD: Gold prices rose this week as firm demand offset a stronger dollar.
"Gold continues to trade in a range between 420 and 425 dollars per ounce, tending to trade either side of 422," Barclays Capital analyst Kamal Naqvi said. "This has been a resilient performance by gold given that the euro has slipped back below 1.30 dollars," said Naqvi, adding that the week saw buying interest for the metal from Asia.
A stronger dollar makes gold, which is priced in the US currency on world markets, less attractive to buyers using other currencies.
Gold had fallen to the lowest level for three months earlier this month, to 420 dollars per ounce as the dollar began its fight back against the euro.
On the London Bullion Market, gold prices rose to 423.30 dollars per ounce at the fixing late on Friday, from 422.50 dollars a week earlier.
SILVER: Silver prices fell, weighed down by a weaker dollar.
"Silver, in a rare break from gold, has suffered from a further sell-off, with prices falling back towards 6.50 dollars before finding support," Naqvi said.
Silver prices should average 6.564 dollars in 2005, the London Bullion Market Association said in its annual report.
Silver prices dropped to 6.580 dollars per ounce on Friday at the fixing from 6.630 dollars a week earlier.
PLATINUM AND PALLADIUM: Platinum prices reached the highest level for one and a half months while palladium advanced also.
Platinum rose to as high as 869.50 dollars per ounce at Thursday's late fixing, the highest level since December 6.
"Platinum continues to push higher, assisted by consumer interest, particularly in China ahead of the (Chinese) New Year, and concerns about ongoing rand strength" against the dollar, Naqvi said.
A strong South African rand weighs on the country's platinum producers, whose earnings are in dollars.
By Friday, platinum prices advanced to 866 dollars per ounce on the London Platinum and Palladium Market from 853 dollars a week earlier.
Palladium prices increased to 187.50 dollars per ounce compared with 183 dollars the previous week.
BASE METALS: Base metals prices rose sharply, notably zinc, due to a slump in stockpiles and data underlining strong Chinese demand.
Barclays Capital analyst Ingrid Sternby noted that base metals stockpiles fell strongly in London and Shanghai.
Zinc prices rallied to the highest level since 1997, reaching 1,298 dollars per tonne on Friday. The metal, already showing a supply deficit, won further support from temporary shutdowns to Chinese production due to power shortages.
Chinese customs data meanwhile showed copper imports at a "healthy" 99,000 tonnes in December, Sternby said.
By Friday, three-month copper prices rose to 3,069 dollars per tonne on the London Metal Exchange from 2,988 dollars a week earlier.
Three-month aluminium prices climbed to 1,845.50 dollars per tonne from 1,826 dollars.
Three-month nickel prices traded at 14,100 dollars per tonne from 14,630 dollars.
Three-month lead prices advanced to 925 dollars per tonne from 881 dollars. Three-month zinc prices jumped to 1,289 dollars per tonne from 1,233 dollars. Three-month tin prices rose to 7,850 dollars per tonne from 7,645 dollars.
OIL: Oil prices surged to six-week high points at the beginning of the week, approaching 50 dollars a barrel in New York amid freezing temperatures in the United States and as the International Energy Agency (IEA) forecast strong global demand for crude in 2005.
New York's main oil contract, light sweet crude for delivery in February, rose to as high as 49.50 dollars a barrel, the highest level since November 30.
The February contract expired at 46.71 dollars per barrel on Thursday.
Brent North Sea crude for February delivery also expired this week, replaced by the March contract.
Prices also won support earlier in the week from the IEA, which said global demand for oil would remain strong in 2005, led by China and Asian countries, and warned that unexpected events could crimp supply.
The IEA said it had raised its forecast for demand growth in 2005 slightly to 1.44 million barrels per day, up by 1.7 percent in 2004.
Crude futures cooled later in the week following a sharp rise in US commercial crude stocks and expectations of warmer temperatures in the United States.
US crude oil reserves rose by 3.4 million barrels to 292.2 million in the week that ended January 14, a Department of Energy report said and are now 8.0 percent above the level during the same period a year ago. The build in stocks has increased expectations of an output cut from Opec when it meets on January 30, the same day as Iraq's landmark elections, which could impact also prices should violence erupt.
"People are still very nervous ahead of the Iraqi elections and the Opec meeting," Investec analyst Bruce Evers said. By Friday New York's light sweet crude for delivery in March rose to 48.70 dollars per barrel from 48.53 dollars the previous week.
In London, Brent North Sea crude for March delivery dollars climbed to 45.70 dollars per barrel from 44.96 dollars a week earlier.
RUBBER: Rubber prices gained ground this week ahead of the onset of colder weather in major producing countries.
"More and more people began to feel that the start of wintering was not far away," one London trader said.
Wintering refers to the low harvest season, between February and April, in major producers Indonesia, Malaysia and Thailand.
In Osaka, the RSS 3 February contract rose to 127.30 US cents on Friday from 122 cents a week earlier.
Singapore's RSS 3 February contract stood at 119 US cents on Friday, compared with 117 cents last week.
COCOA: Cocoa prices eased slightly amid a lack of news in major producer Ivory Coast.
"The market is holding a static 1,483-1,515 dollar range (in New York), supported by trade buying at the lows but unable to muster any direction," Refco analyst Ann Prendergast said.
"There was no event in the Ivory Coast, though the government recently urged the UN Security Council to blame the rebels for the current disarmament impasse," she added.
On Liffe, London's futures exchange, the price of cocoa for March delivery fell to 825 pounds per tonne on Friday from 828 pounds a week earlier.
On the CSCE, the New York futures market, the March contract stood at 1,486 dollars per tonne on Friday, from 1,499 dollars the previous week.
COFFEE: Coffee prices firmed, holding above the symbolic 1.0-dollar mark in New York due to expected lower harvests and high demand.
"The market is supported by widespread expectations of a shortage based on a smaller Brazil crop, depleted producer country stocks, increased demand and reduced output from the central American countries," Prendergast said.
Last month, coffee futures hit the highest level for four and a half years in New York on huge buying by speculative funds, which anticipate a production deficit for the 2005-2006 season.
On New York's CSCE market, Arabica for March delivery rose to 102.50 cents per pound on Friday, from 100 cents the previous week.
On Liffe, Robusta quality for March delivery gained to 724 dollars per tonne on Friday from 721 dollars a week earlier.
COTTON: Cotton prices reached fresh three-month high points on speculative and technical buying.
Prices rose to 48.31 cents per pound in New York on Thursday, the highest level since October 20.
"The market continues to rally on a positive technical outlook despite the bearish fundamental backdrop," Prendergast said.
She said traders should be "wary of this market given the fundamental outlook that leaves the word awash with cotton by the end of the 2004-2005 season".
New York's March contract jumped to 47.21 cents per pound on Friday from 45.75 cents a week earlier.
The Cotton Outlook Index of physical cotton rose to 52.30 cents on Thursday from 51.60 cents the previous week.
GRAINS AND SOYA: Grains prices fell due to the strength of the dollar, which made the commodity more expensive to consumers abroad.
A resumption to wheat subsidies in Europe also weighed on grains prices, while soya rose thanks to flooding in major producer United States that made transporting supplies difficult.
On Liffe, wheat for March delivery was quoted at 65.25 pounds per tonne on Friday from 66 pounds the previous week.
In Chicago, the price of wheat for March delivery fell to 294.50 cents per bushel Friday from 305.25 cents a week earlier.
Maize for March delivery dropped to 196.75 cents per bushel on Friday from 198.50 cents the previous Friday.
Soyabeans for March delivery firmed to 521.50 cents per bushel on Thursday from 519.50 cents the previous week.
March-dated soyabean meal - used in animal feed - stood at 157.50 dollars per tonne compared with 154.80 dollars.
SUGAR: Sugar futures reached the highest level for three and a half years this week in London, on expectations of a rise in Asian demand, before cooling somewhat.
The price of white sugar climbed to 262.50 dollars per tonne on Monday, the highest level since June 2001.
The market was "spurred on by trade and speculative buying as the market looked forward to Pakistani and Bangladeshi demand, and possible Indian white demand", Refco's Prendergast said.
By Friday on Liffe, the price of a tonne of white sugar for March delivery stood at 260.30 dollars on Friday from 260.50 dollars a week earlier.
On the CSCE in New York, a pound of unrefined sugar for March delivery was traded at 8.97 cents on Friday from 8.80 cents the previous week.
WOOL: Wool prices steadied this week in key producer Australia but remained pressured by the strength of the Australian dollar against its US counterpart.
The Australian dollar gained 0.9 percent against the US unit this week, to reach 0.7645 dollars by Friday.
The Australian Eastern index stood at 7.47 Australian dollars per kilo on Thursday from 7.46 dollars a week earlier.
The British Wooltops index rose to 401 pence, up from 392 pence the previous week.