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LONDON, March 17: Raw materials saw mixed trading again this week, with crude oil prices retreating, as another fierce sell-off in global equities created ripples across world commodities markets.Stock markets around the globe sank this week as anxious investors assess the outlook for the US economy, with problems brewing in the American housing sector. That has sparked some concern over commodities demand in the United States, which is the world's biggest economy.
Commodity markets have held up well despite the turmoil in risky financial assets, said Goldman Sachs analyst Jeffrey Currie.
He added: While the commodity markets had largely priced in the softer economic environment, the risky financial assets -- and equities in particular -- still held a relatively optimistic view of growth.”
OIL: Oil prices fell owing to fresh stock market turmoil, before clawing back some ground late in the week.
Prices also tumbled as traders digested forecasts of warmer weather across the United States, which is the world's biggest energy consumer.
Crude futures drifted lower after the OPEC crude cartel held its daily output target at 25.8 million barrels at a ministerial meeting in Vienna, arguing that global supply levels were healthy.
The Organisation of the Petroleum Exporting Counties supplies more than one third of global crude.
Limited support came from the International Energy Agency, which warned of a potential supply crunch in many industrialized nations during the first quarter of 2007.
Geopolitical concerns over key crude producer Iran also resurfaced.
By Friday in London, a barrel of Brent North Sea crude for delivery in May fell to $61.28 per barrel, from $61.51 the previous week.
In New York, a barrel of crude for delivery in April sank to $57.90 per barrel from $60.85.
GRAINS AND SOYA: Grains and soya prices fell in line with stock markets.
The main reason this week we're down is because of the world economy jitters, Allendale analyst Joe Victor said.
The stock market have been rattled the last two weeks. You have got some crossover into the futures market with some traders taking profit out of the futures (markets) to help pay the losses from the stock market. On the Chicago Board of Trade, the price of wheat for May delivery fell to US$4.6125 per bushel on Friday, from $4.7650 the previous week.
Maize for May delivery slid to $3.9850 per bushel on Friday, from $4.1750 the previous week.
May-dated soyabean meal -- used in animal feed -- dropped to $7.5250 on Friday, from $7.5975 the previous week.
On the LIFFE, London's futures exchange, the price of a ton of wheat for May delivery stood at 97.50 pounds, unchanged from the previous week.
GOLD: Gold prices climbed after faltering at the start of the week.
“The stronger euro (against the dollar) leaves the gold market somewhat cheap relative to currency markets and ought to see gold challenge the 655 dollars per ounce level,” said JP Morgan analyst Michael Jansen.
A weaker US dollar makes gold less expensive for buyers using other currencies.
On the London Bullion Market, gold prices firmed to $653.20 per ounce at Friday's late fixing, from $652.25 the previous Friday.
SILVER: Silver prices held steady, despite gold's move higher.
Silver should find further support from bullish base metals, said James Moore, an analyst for specialist website TheBullionDesk.com.
On the London Bullion Market, silver prices stood at $13.07 per ounce at Friday's late fixing, unchanged from the previous week.
PALLADIUM AND PLATINUM: Platinum prices followed gold higher but palladium struggled. However, there was strong speculative buying interest for both metals, analysts said.
On the London Platinum and Palladium Market, platinum stood at $1,217 per ounce at the late fixing Friday, from 1,203 the previous week.
Palladium eased to $351 per ounce, from $352 one week earlier.
BASE METALS: Base metal prices mainly rose, with nickel smashing another record as traders tracked weak stockpiles.
Nickel climbed as high as $48,500 on the London Metal Exchange (LME), which is the world's leading metals futures market.
Nickel price performance has remained impressive, with prices setting a series of record highs on the back of continued strong stainless steel demand, supply disruptions and delays and the critically low LME nickel inventory, said Barclays Capital analysts.
Copper, meanwhile, breached 6,500 dollars per ton owing to voracious Chinese demand.
China's imports of copper... hit their highest level ever last month, thanks to tight domestic supplies and high premiums, added UBS analyst Robin Bahr.
On Friday, three-month copper prices jumped to $6,490 per ton on the LME, from $6,150 the previous week.
Three-month aluminium prices rose to $2,775 per ton from $2,727.5.
Three-month nickel prices rocketed to $46,800 per ton from $42,450.
Three-month lead prices gained to $1,885 per ton from $1,804.
Three-month zinc prices slid to $3,220 per ton from $3,300.
Three-month tin prices increased to $13,900 per ton from $13,740 a week earlier.
COCOA: In London cocoa prices hit an eight-month peak of 1,010 pounds per ton, which was last seen in July 2006, supported by forecasts of a large production deficit.
New York cocoa meanwhile surged as high as $1,800 per ton, which was last seen in May 2003.
The price outlook “remains bullish for cocoa because of expectations of tight supplies,” said Sucden analyst Michael Davies.
By Friday on the LIFFE, the price of cocoa for May delivery slid to 989 pounds per ton, from 995 pounds a week earlier.
On the New York Board of Trade (NYBOT), the May contract stood at $1,792 per ton on Friday, from $1,789 the previous week.
COFFEE: Coffee prices steadied, trading within narrow margins after heavy losses the previous week.
By Friday on the LIFFE, Robusta quality for May delivery stood at $1,509 per ton, from $1,508 a week earlier.
On the NYBOT, Arabica for May delivery dropped to 109.90 US cents per pound on Friday, from 111.90 cents the previous week.
SUGAR: Sugar prices were stable.
The market still remains under pressure from the prospect of a larger crop in Brazil this season, Davies added.
By Friday on the LIFFE, the price of a ton of white sugar for August delivery firmed to 329 dollars, compared with 328 dollars a week earlier.
On the NYBOT, the price of unrefined sugar for July delivery stood at 10.20 US cents per pound, from 10.36 US cents the previous week.
WOOL: Wool prices rose thanks to a pick-up in demand.
In another good week of strong demand there were significant increases over all Merino micron ranges on Wednesday, the Australian Wool Industry Secretariat said.
Some 63,279 bales are rostered for sale next week in Sydney, Melbourne and Freemantle.
The Australian wool market finished 1.8 per cent higher on average this week, with the Eastern index rising to 9.62 Australian dollars per kilo, from $9.43 the previous week.---AFP
