Oil prices stabilize, metals higher
LONDON, Oct 1: Oil prices steadied, as US Gulf Coast refinery production remained paralysed by hurricanes Rita and Katrina, but supply fears were countered by concerns over the strength of global demand.
Copper continued to smash records and gold held close to an 18-year high.
The price of sugar also notched up a near five-year high on keen demand.
The Commodities Research Bureau’s index of 17 commodities climbed to 335 points on Friday from 326.28 points the previous week.
GOLD: Gold prices rose amid high oil prices and inflation worries.
On the London Bullion Market, the price of gold rose to 473.40 dollars an ounce on Friday morning. It reached 475.45 dollars on September 22, the highest level since January 1988.
“The bullish factors remain, high oil, directionless currencies and growing physical demand; and short-term seems set to propel gold towards 500 dollars and above in the mid to long-term,” said James Moore, analyst with specialist website TheBullionDesk.com.
On the London Bullion Market, gold prices climbed to 473.25 dollars per ounce at the late fixing on Friday from 462.65 dollars the previous week.
SILVER: Silver prices benefitted from gold and copper gains, combined with investment fund interest.
“After lurking in the shadows silver finally sprang into life as fund buying allowed the metal to play catch-up with gold and copper,” said Moore.
“The industrial metal’s next target are the March and June highs around 7.60-7.65 dollars.”
On the London Bullion Market, silver prices rose to 7.53 dollars per ounce at the late fixing Friday from 7.29 dollars the previous week.
PLATINUM AND PALLADIUM: Platinum and palladium prices increased, drawing strength from other metals.
“With gold, silver and copper firm, platinum and palladium have traded back towards their recent highs,” UBS analyst John Read said.
BASE METALS: Base metals prices mostly eased but copper hammered out another fresh record.
On Friday, three-month copper prices on the London Metal Exchange (LME) hit 3,815 dollars per tonne — the highest price for the metal since it was first quoted in its current form in 1870.
“Copper prices continue to rally, setting fresh all-time highs”, Barclays Capital analyst Ingrid Sternby said, adding that “prices were buoyed higher by fund buying”.
By Friday, three-month copper prices on the LME increased to 3,799 dollars per tonne from 3,793.50 dollars the previous week.
Three-month aluminum prices nudged down to 1,870 dollars per tonne from 1,874 dollars.
Three-month nickel prices eased to 13,700 dollars per tonne from 13,705 dollars.
Three-month lead prices rose to 939 dollars per tonne Friday from 931.93 dollars.
Three-month zinc prices fell to 1,410 dollars per tonne from 1,427.50 dollars.
Three-month tin prices dipped to 6,600 dollars per ton from 6,875 dollars.
OIL: Oil prices steadied this week after jumping on US Gulf Coast refinery concerns, but handed back gains as worries surfaced that high price levels could lead to a drop-off in demand at some stage.
Distillates, used for heating and diesel fuel, fell by 500,000 barrels, against expectations of a decrease of two million.
Crude was also supported by record levels of natural gas prices.
Prices were little affected by Saudi Arabia’s pledge to supply the market with more crude if necessary.
The barrel of Brent North Sea crude for delivery in November slipped to 62.38 dollars late Friday, compared to 63.54 dollars the previous week.
RUBBER: Rubber prices were stable as the traditional raining season began in major Asian producing nations.
“The raining season has started in the south of Thailand and north of Malaysia,” noted Rachid Ahmed, a trader at Corrie Maccoll.
The season makes it difficult for farmers to collect latex.
SUGAR: Sugar prices hit their highest level for nearly five years in New York, underscored by strong industrial demand.
In New York on Friday, the price of unrefined sugar for March delivery reached 11.33 cents, last seen October 2000.
“The market stretched to five-year highs propelled by trade and fund buying,” Prendergast said.
GRAINS AND SOYA: Maize and soya prices mostly retreated amid favourable harvest conditions in major producer United States.
Maize for December delivery decreased to 205.50 cents per bushel Friday from 208 cents.
Soyabeans for November delivery dipped to 570 cents per bushel on Friday from 577 cents
October-dated soyabean meal — used in animal feed — fell to 168.60 dollars per ton from 172.50 dollars.
COTTON: Cotton prices advanced in a market awaiting a clear assessment of Hurricane Rita’s impact in Texas and Louisiana.
“Most (traders) are still waiting around for damage assessments from Rita and this will likely be the case for another couple of weeks,” Prendergast said.
On the New York Cotton Exchange (NYCE), the December contract stood at 54.10 US cents per pound on Thursday, up from 51.75 cents a week earlier.
The Cotton Outlook Index of physical cotton rose to 57.00 cents on Thursday from 55.45 cents last week.
WOOL: Wool prices stabilised in Australia after striking a five-and-a-half-year low.
“The Australian wool market finished this week with prices 0.4 per cent lower on average”, the Australian Wool Industries Secretariat said, while it reported that “buyers for China were dominant”.
The Australian Eastern index edged down to 6.76 Australian dollars per kilo on Thursday from 6.79 AUD last week.
The British Wooltops index firmed to 403 pence Thursday from 400 pence last week.—AFP