LONDON, July 16: World oil prices dropped this week on slightly easing supply concerns, while rubber bounced to record high points in Thailand and sugar jumped to fresh multi-year peaks on robust demand.
The Commodities Research Bureau’s index of 17 commodities fell to 310.14 points on Friday, from 314.48 points the previous week.
GOLD: prices fell below 420 dollars this week on selling by speculative funds amidst weak demand.
A lack of physical demand has probably exacerbated the recent move lower in gold and could see the metal plumb the year’s lows if speculative selling continues, UBS analyst Johan Reade said.
On the London Bullion Market, gold prices dropped to 418.35 dollars per ounce at the late fixing on Friday from 424.40 dollars the previous week.
SILVER: er prices gained slightly.
Silver continues “to trade in volatile fashion as large speculative positions on both sides of the market battle for supremacy”, Barclays Capital analyst Kamal Naqvi said.
On the London Bullion Market, silver prices rose to 6.965 dollars per ounce at the late fixing Friday from 6.945 dollars the previous week.
PLATINUM AND PALLADIUM: inum and palladium prices nudged ahead.
Supply and demand analysis suggests that the platinum market will remain roughly in balance over the next few years, with risks biased towards shortages and this should support the platinum price, Reade said.
He added that the palladium market was oversupplied, leading to a remote chance of sustained higher prices.
By Friday, platinum prices rose to 864 dollars per ounce on the London Platinum and Palladium Market from 862 dollars the previous week.
Palladium prices stood at 183 dollars per ounce on Friday from 181.50 dollars.
BASE METALS: metals prices showed mixed fortunes.
Copper was steady as support won from labour disputes in the United States and Zambia was offset by seasonally slow demand.
By Friday, three-month copper prices stood at 3,348.50 dollars per tonne on the London Metal Exchange from 3,353 dollars the previous week.
Three-month aluminium prices climbed to 1,838.50 dollars per tonne Friday from 1,748.50 dollars.
Three-month nickel prices fell to 14,305 dollars per tonne on Friday from 14,750 dollars.
Three-month lead prices dropped to 827 dollars per tonne Friday from 878.50 dollars.
Three-month zinc prices eased to 1,200 dollars per tonne Friday from 1,209 dollars.
Three-month tin prices advanced to 7,390 dollars per tonne Friday from 7,140 dollars.
OIL: World oil prices tumbled following a volatile week dominated by concerns about supplies of crude as Tropical Storms and Hurricanes swirled around the Gulf of Mexico, home to US production facilities.
After a quiet start, prices soared on Tuesday on concerns that US oil rigs in the Gulf could fall victim to a Tropical Storm Emily after escaping the worst of Hurricane Dennis the previous weekend.
New York’s main contract, light sweet crude for delivery in August, jumped 1.70 dollars to close at 60.62 dollars per barrel on Tuesday, off an intra-day high of 61.25 dollars.
It last week reached a record peak of 62.10 dollars as Dennis wreaked havoc in the Caribbean and southern United States, killing 62 people.
RUBBER: Rubber prices jumped to historic high points in leading producer Thailand this week and 17-year peaks in Tokyo on strong demand by tyre makers.
Demand, mainly from the tyre manufacturers, continues to outpace supply, one London trader said. Prices will continue to move higher.
COCOA: Cocoa futures steadied after falling to one-year lows the previous week.
The market is subject to changing currency values, dry weather and the unsteady political situation in Ivory Coast, Refco analyst Ann Prendergast said.
COFFEE: Coffee prices steadied amidst concerns about possible supply shortages.
On LIFFE, Robusta quality for September delivery eased to 1,235 dollars per tonne on Friday from 1,256 dollars a week earlier.
SUGAR: Sugar prices jumped to the highest level for eight years in London and four and a half years in New York on strong demand.
In London, prices reached 324 dollars per tonne on Thursday, the highest point since September 1997. They have climbed by 25 percent since the start of 2005. Prices peaked at 9.60 cents per pound in New York on Thursday, heights not reached since 2001.
GRAINS AND SOYA: Grains and soya prices mostly extended gains on expectations of dry and hot weather in the United States.
On LIFFE, wheat for September delivery stood at 66.25 pounds per tonne on Friday from 66.50 pounds a week earlier.
In Chicago, the price of wheat for September delivery rose to 347.75 US cents per bushel Friday from 337.25 cents.
COTTON: Cotton prices fell as world production for the 2005/06 season was revised higher.
New York’s October contract slid to 49.82 cents per pound on Friday from 53.90 cents the previous week.
The Cotton Outlook Index of physical cotton dropped to 54 cents on Thursday from 57.60 cents a week earlier.
WOOL: Wool prices fell in leading producer Australia as the country’s dollar rebounded against its US counterpart, making exports more expensive.
After two good weeks, the market came under pressure with an upward movement in the US exchange rate and a larger than originally anticipated offering, the Australian Wool Industries Secretariat said.
The Australian Eastern index fell to 7.27 Australian dollars per kilo on Thursday, from 7.35 Australian dollars a week earlier.—AFP
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