The prices of platinum and lead struck all-time highs last week owing to tight global supplies of the metals. Elsewhere, Gold breached 750 dollars an ounce for the first time since 1980 and oil futures flirted with record peaks.
PRECIOUS METALS: The price of platinum forged a record high on Thursday as the white metal was hit by tight global supplies, while gold soared to the best level since 1980 on the back of the weak US dollar, analysts said. Platinum surged as high as 1,417.25 dollars an ounce on the London Platinum and Palladium Market.
That beat its previous all-time high point of 1,402.50 dollars hit in November 2006. Platinum is used by the jewellery industry and in the manufacture of catalytic exhaust units for vehicles. Gold prices leapt on Thursday as high as 753.65 dollars an ounce on the London Bullion Market.
Platinum, already beset with tight supplies, took another hit from fresh concerns in South Africa. "The rise in (platinum) prices has been supported by concerns over supply following news of electrical power shortages in South Africa - the world's largest producer of platinum," said Barclays Capital analysts.
"The power supply to smelters owned by Anglo Platinum was disrupted and reignited fears that the power situation could worsen over the next few years." Gold, meanwhile, tends to rise in value when the US unit weakens because it makes commodities that are priced in dollars cheaper for buyers using stronger currencies.
"Gold prices strengthened again as US dollar weakness underpinned solid gains," Barclays Capital analysts added. The high came as the European single currency bounced back above 1.42 dollars, rising close to its record high 1.4283 dollars that was struck on October 1.
The precious metal is also supported by strong crude oil prices, which in turn spark inflationary concerns. However, gold is regarded as a safe bet in times of rising inflation. Last month, the price of London's Brent oil hit a record high 81.05 dollars per barrel, while New York crude struck an all-time peak of 84.10 dollars also in September, largely owing to tight energy supplies.
On the London Bullion Market, gold jumped to 749.50 dollars an ounce at Friday's late fixing, from 737 dollars a week earlier. Silver climbed to 13.79 dollars an ounce at Friday's late fixing, from 13.43 dollars a week earlier.
On the London Platinum and Palladium Market, platinum rose to 1,416 dollars an ounce at the late fixing Friday, from 1,364 dollars a week earlier. Palladium increased to 377 dollars an ounce, from 366 dollars.
BASE METALS: The price of lead struck yet another all-time high point on Friday owing to persistent jitters over stretched global supplies and fierce demand, traders said.
The price of lead for delivery in three months rose to an historic 3,866 dollars a tonne on the London Metal Exchange. "In our view, strong demand in Asia and supply shortages will continue to support the rally higher," said analysts at Barclays Capital.
Base metal lead has been plagued by chronically low stockpiles. On Friday, the price of copper for delivery in three months fell to 8,125 dollars a tonne on the London Metal Exchange, from 8,245 dollars a week earlier.
-- Three-month aluminium prices gained to 2,514 dollars a tonne, from 2,436 dollars.
-- Three-month nickel prices rose to 32,400 dollars a tonne, from 30,500 dollars.
-- Three-month lead prices rallied to 3,835 dollars a tonne, from 3,675 dollars.
-- Three-month zinc prices advanced to 3,125 dollars a tonne, from 3,055 dollars.
-- Three-month tin prices increased to 16,551 dollars a tonne, from 16,025 dollars.
OIL: World oil prices flirted with fresh record high points this week owing to persistent concerns over global supplies, traders said. Crude futures surged Friday amid increasing tensions between Turkey and Kurdish rebels in oil-producer Iraq, traders said.
The autonomous Kurdish regional government in northern Iraq has warned Turkey against making good its threat to mount a cross-border incursion to flush out suspected rear-bases of the rebel Kurdistan Workers' Party (PKK).
The tensions sent the price of Brent North Sea crude soaring to 80.87 dollars a barrel on Friday, just below its all-time record high of 81.05 dollars reached last month. New York's light sweet crude soared to 84.05 dollars, five cents off its historic peak, which was also struck in September.
"The reason the market is strong is concerns over increasing tensions between Turkey and the Kurds," Alaron analyst Phil Flynn said. "There's a strong possibility if we close above 84 dollars (in New York) this market could go higher yet."
Ankara charges the PKK has used bases in northern Iraq to launch a renewed offensive inside Turkey that saw 15 soldiers killed at the weekend. Oil prices had begun spiking Thursday after the US Department of Energy said American crude reserves slumped by 1.7 million barrels in the week to October 5. Market expectations had been for a 1.0-million-barrel gain.
The DoE had added that US distillates, which include heating fuel, slid by 600,000 barrels, which was broadly in line with market expectations for a 775,000-barrel drop. This week, the oil market has swung between losses and gains as sentiment was swayed by supply concerns and the flagging US dollar.
Prices slumped by more than two dollars on Monday as the dollar rose against the European single currency. However, oil prices have since rebounded on renewed concerns over the strength of global supplies going forward, while the dollar also resumed its downward trend against major rival currencies. Traders are worried about tight heating fuel supplies ahead of the approaching winter months in the northern hemisphere.
The prospect of lower US interest rates, which could increase global crude demand by stimulating the world's biggest economy and energy consumer, has also supported gains. Meanwhile, the International Energy Agency (IEA), the developed world's energy watchdog, this week held steady its forecasts for oil demand for this year and next.
The IEA predicted average oil demand to be 85.9 million barrels per day in 2007 and 88 million bpd in 2008. By Friday, Brent North Sea crude for November delivery jumped to 80.85 dollars a barrel, from 78.70 dollars a week earlier. New York's main oil futures contract, light sweet crude for delivery in November, leapt to 83.99 dollars a barrel, from 80.75 dollars a week earlier.
COCOA: Cocoa prices extended losses, falling almost 3.0 percent in London and by 1.5 percent in New York, on talk of there being a good harvest in leading producer Ivory Coast. "Early forecasts are coming in at 1.25 million tonnes," Sucden analysts said.
By Friday on the Liffe, London's futures exchange, the price of cocoa for December delivery dropped to 934 pounds a tonne, from 958 pounds a week earlier. On the New York Board of Trade (NYBOT), the December contract slid to 1,830 dollars a tonne, from 1,861 dollars the previous Friday.
COFFEE: Coffee prices surged almost 14.0 percent in New York owing to an absence of rain in producer Brazil. Sucden analysts said rain was not forecast to fall in the South American country until October 21. It meanwhile warned that "a sober assessment of the potential weather impact on the Brazil crop is ... difficult to put together because of the constant stream of dubious information from official sources." By Friday on the Liffe, Robusta quality for November delivery rocketed to 2,168 dollars a tonne, from 1,904 dollars one week earlier.
On the NYBOT, Arabica for December delivery rose to 139.00 US cents a pound, from 135.45 cents.
SUGAR: Sugar prices continued to head south amid an abundance of supplies from India and Brazil. "Markets remain lethargic ... confirming sugar as one of the worst performing commodities this year," Standard Chartered analyst Abah Ofon said.
By Friday on the Liffe, the price per tonne of white sugar for December delivery fell to 270.50 pounds, from 277.00 pounds a week earlier. On the NYBOT, the price of unrefined sugar for March delivery dipped to 9.84 US cents a pound, from 9.85 cents a week earlier.
GRAINS AND SOYA: Wheat prices extended losses, but those of soya and maize climbed owing to tight supplies. The US government Friday revised lower its forecast for soya output in the United States during the 2007/08 season.
"This is putting some positive on the prices," Fimat analyst Dan Cekander said. By Friday on the Chicago Board of Trade, the price of maize for December delivery rose to 3.49 dollars a bushel, from 3.42 dollars a week earlier.
Wheat for December delivery fell to 8.55 dollars a bushel, from 8.90 dollars the previous week. November-dated soyabean meal - used in animal feed - gained to 9.80 dollars, from 9.40 dollars.
On the Liffe, the price per tonne of wheat for May delivery dropped to 174.50 pounds, from 178.00 pounds a week earlier.
RUBBER: Rubber prices advanced during a quiet trading week ahead of the Muslim Eid festival, which signals the end of the month-long Ramadan fast. The Malaysian rubber market was shut Friday and will not reopen until Tuesday.
"Traders are in a holiday mood," a trader with a local company said Friday. "Wet weather in Malaysia and Thailand (which are among the two largest rubber producers in the world) is expected to push prices up further." By Thursday, the Malaysian Rubber Board's benchmark SMR20 rose to 221.70 US cents per kilo, from 216.70 US cents per kilo on Friday of the previous week.
WOOL: The price of wool rose in major producer Australia, after the market turned around a weak start. "There was a wide spread of buyer activity again this week, with buyers for China again strong, together with those for Europe and India," the Australian Wool Industry Secretariat said.
The Australian wool market finished the week 2.5 percent higher on average, with the Eastern Index gaining 21 Australian cents to close at 9.47 Australian dollars a kilo.