LONDON, Sept 2: Crude futures tumbled this week as supply fears eased in the United States, though there were some strong gains for metals prices, notably silver.
On Friday, the Commodities Research Bureau's index of 17 commodities fell to 328.90 points, from 336.20 points the previous week. It dropped to 324.60 points on Thursday -- the lowest level for five months.
GOLD: The price of gold steadied amid concerns over Iran.
Uncertainty of Irans actions have added some safe-haven support to gold over the past few days, said James Moore, analyst at specialist website TheBullionDesk.com.
The precious metal usually benefits from its safe-haven status in times in geopolitical instability, while gold is seen also as a good hedge against rising inflation.
On Thursday, the UN nuclear watchdog concluded in a confidential report that the Islamic republic had not suspended its enrichment-related activities, as demanded by the Security Council's five permanent members along with Germany.
On the London Bullion Market, gold prices stood at $621.05 per ounce at Friday's late fixing, from 621.25 dollars a week earlier.
SILVER: Silver prices jumped to almost 13 dollars per ounce.
Gold's sister metal continues to benefit from the launch earlier this year of a silver fund on the American Stock Exchange.
On the London Bullion Market, silver prices rose to $12.75 per ounce at Friday's fixing, from $12.40 the previous week.
PALLADIUM AND PLATINUM: Platinum prices rose slightly, while palladium steadied around 340 dollars per ounce.
“We have noted some post-summer physical demand for platinum,” UBS analyst John Reade said.
On the London Platinum and Palladium Market, platinum increased to $1,241 per ounce at the late fixing Friday, from $1,223 the previous week.
Palladium fell to $343 per ounce on Friday from $344 the previous week.
BASE METALS: Base metal prices mainly rose, including copper despite an end to a long strike at the world's biggest copper mine.
Mining group BHP Billiton said Friday that full production at its strike-hit Escondida copper mine in Chile would resume next week after it reached a pay deal with workers.
The mine, which produces eight per cent of the world's copper, or 1.3 million tons a year, has been crippled by a 25-day strike by workers demanding higher pay.
On Friday, three-month copper prices on the LME advanced to 7,601 dollars per ton from 7,506 dollars the previous week.
Three-month aluminium prices was unchanged at 2,497 dollars per ton.
Three-month nickel prices fell to 28,800 dollars per ton from 29,300 dollars.
Three-month lead prices edged up to 1,232 dollars per ton from 1,220 dollars.
Three-month zinc prices gained to $3,451 per ton from $3,380.
Three-month tin prices climbed to 9,015 dollars per ton from 8,600 dollars.
OIL: Crude futures plunged to the lowest level in two months, as easing US supply concerns offset market jitters over Iran.
Oil prices tumbled five dollars between Monday and Wednesday, firstly owing to news that tropical storm Ernesto would remain below hurricane force and avoid oil facilities on the US Gulf Coast.
Prices fell further Wednesday after official data revealed an unexpected jump in US energy inventories.
The US Department of Energy revealed Wednesday that US supplies of crude oil, gasoline and other refined products grew over the past week.
“The surprise builds in crude and gasoline are likely to add further downward pressure (to prices), as a market unaffected so far this year by hurricanes seems well-supplied going into the winter,” said Jason Schenker, an economist at Wachovia Corporation.
Crude prices in New York and London fell below 69 dollars per barrel for the first time since late June.
At about 1400 GMT on Friday in New York, a barrel of crude for delivery in October slumped to 70.35 dollars per barrel from 73.55 dollars the previous week.
In London, a barrel of Brent North Sea crude for delivery in October slid to 70.40 dollars per barrel, from 73.78 dollars.
RUBBER: Rubber prices dived as speculators exited the market amid healthy supplies of the commodity.
“Prices seem to have gone into a free fall at the moment, losing more than 10 yens in a week,” Corrie MacColl trader Rashid Ahmed said.
A lot of the speculative element has been taken out of the rubber market.On TOCOM, Tokyo's commodity exchange, natural rubber for January delivery dropped to 242.10 yen per kilogramme on Friday, from 252.20 yen a week earlier.
Singapore's RSS 3 January contract fell to 201.25 US cents per kilogramme on Friday, from 213.50 US cents a week earlier.
COCOA: Cocoa prices slumped to nine-month lows on the expectation of healthy harvests.
“Futures fell on the back of speculative and fund selling on bearish technical signals and improving supply prospects,” Sucden analyst Michael Davies said.
On the LIFFE, London's futures exchange, the price of cocoa for December delivery declined to £845 per ton on Friday, from 857 pounds a week earlier.
On the New York Board of Trade (NYBoT), the December contract fell to 1,506 dollars per ton on Friday, from 1,516 dollars a week earlier.
COFFEE: The price of coffee firmed in London, supported by concerns over low supplies in major producer Vietnam.
In London, the price of Robusta coffee remained close to a seven-year high.
On LIFFE, Robusta quality for November delivery gained to 1,540 dollars per ton on Friday, from 1,502 dollars a week earlier.
SUGAR: Sugar prices hit fresh low points for 2006 owing to abundant supplies.
In London on Thursday, the price of white sugar hit 361 dollars per ton -- the weakest level this year.
New York prices fell to a nine-month low of 11.41 cents on Thursday.
On LIFFE, the price of a ton of white sugar for October delivery melted to $375.80, from 384.50 dollars a week earlier.
On NYBot, the price of unrefined sugar for October delivery stood at 11.75 US cents per pound, from 12.42 cents.
GRAINS AND SOYA: Wheat prices struck the highest level in London for two and a half years as traders fretted over the 2006/2007 European harvest.
Wheat crops in producing countries across Europe have been hampered by heavy rainfall throughout August, which hampers crop growth, quality and harvesting conditions.
The price of wheat hit 88 pounds per ton on Friday, marking the highest peak since May 2004. The crop has now won 30 per cent in value over the past 12 months.
Meanwhile, soya prices fell amid favourable growing conditions in major producer the US, which boost supplies but limits prices.
On the Chicago Board of Trade, the price of wheat for September delivery rose to 4.00 US dollars per bushel on Friday, from 3.81 dollars a week earlier.
Maize for September delivery increased to 2.30 dollars per bushel on Friday, from 2.26 dollars.
September-dated soyabean meal -- used in animal feed -- slipped to 5.42 dollars per ton on Friday, from 5.50 dollars.
On the LIFFE, the price of a ton of wheat for November delivery advanced to 86.70 pounds on Friday, from 84.75 pounds.
COTTON: Cotton prices fell owing to an absence of Chinese buying and forecasts of a large Indian harvest, but losses were limited by possible damage to US cotton by tropical storm Ernesto.
On the New York Cotton Exchange (NYCE), the December contract dropped to 54.65 US cents per pound on Friday, from 55.60 US cents a week earlier.
The Cotton Outlook Index of physical cotton stood at 60.25 US cents on Thursday, compared with 60.35 US cents a week earlier.
WOOL: Wool prices advanced on keen demand.
The market got away to a good start... and maintained that momentum over the rest of the week,” the Australian Wool Industries Secretariat said.
Buyers for China, and the topmakers (clothing manufacturers) were dominant.”The Australian Eastern index closed at 7.51 Australian dollars per kilo on Thursday, from 7.46 the previous week.
The British Wooltops index stood at 403 pence on Thursday, up from 401 pence the previous Thursday.—AFP
