LONDON, Jan 27: Global crude oil futures rallied above $55 per barrel this week, while metals shone, with tin and nickel prices hammering new historic peaks. Soft or agricultural commodities mostly fell.
The Commodities Research Bureau's index of 17 commodities rose to 294.85 points on Friday at about 1600 GMT, from 289.67 points a week ago.
GOLD: The price of gold broke through $650 per ounce to hit the highest level for around six months, rising on the back of buoyant crude and base metal prices.
Gold prices hit as high as $654.60 on the London Bullion Market on Thursday, reaching a level last seen in early August 2006, before pulling back.
The precious metal is benefiting from higher oil prices, which increase the risk of inflation. That increases the attractiveness of gold as a defence against the erosion of the value of money.
On the London Bullion Market, gold prices rose to $645.50 per ounce at Friday's late fixing, from $629 the previous Friday.
SILVER: Silver prices rose above $13 per ounce in line with gold's gains.
Fund players seem keen to push the metal higher, Moore added.
On the London Bullion Market, silver prices climbed to $13.22 per ounce at Friday's late fixing, from $12.72 the previous week.
PALLADIUM AND PLATINUM: Sister metals palladium and platinum prices rose.
Further speculative driven gains could see palladium challenge the 4355-high set in September, said Moore.
On the London Platinum and Palladium Market, platinum advanced to $1,169 per ounce at the morning fixing Friday, from $1,158 the previous week.Palladium climbed to $349 per ounce, from $339 one week earlier.
BASE METALS: Nickel and tin continued to strike all-time records.
On Friday, nickel for delivery in three months reached $38,950 per ton in London trade amid tight supplies of the metal. That was the highest reading for nickel since the start of its quotation on the LME in 1979.
Meanwhile, the price per ton for delivery of tin in three months had hit $12,500 on Wednesday, the highest level since 1989 when the metal was re-introduced on the London market.
Tin prices are soaring due to a fall in output from Indonesia, which is the world's second biggest producer.
On Friday, three-month copper prices rose to $5,750 per ton on the London Metal Exchange from $5,520 the previous week.
Three-month aluminium prices gained to $2,777 per ton from $2,705.
Three-month nickel prices jumped to $37,800 per ton from $33,455.
Three-month lead prices advanced at $1,685 per ton from $1,601.
Three-month zinc prices eased to $3,601.50 per ton from $3,611.
Three-month tin prices climbed to $11,950 per ton from $11,580 a week earlier.
OIL: World crude prices rebounded on a wave of positive market sentiment.
Colder weather conditions (in the northern hemisphere) and the decision to double the size of the US Strategic Petroleum Reserve were the two key factors in moving sentiment, said Barclays Capital analyst Kevin Norrish.
Prices also found support from robust oil demand growth, Opec production cuts and simmering global geopolitical tensions, he added.
Analysts said prices were still rebounding from the previous week when New York crude had tumbled to a 19-month low under $50 amid a healthy supply picture.
Rising US stocks put a lid on prices, following an increase on Tuesday due to the cold snap and US President George W. Bush's announcement that the United States would double its strategic oil reserve.
The US National Weather Service, meanwhile, sees below normal temperatures continuing in the country's northeastern region -- the world's largest heating fuel market -- for roughly the next two weeks.
Although US energy inventories remain ample, many analysts expect increased demand for heating oil, amid the recent cold snap, will bite into next week's US inventory report.
Meanwhile, traders remained uncertain over whether Opec cartel members would comply fully with their pledges to cut output.
By Friday in New York, a barrel of crude for delivery in March surged to $55.25 per barrel from $51.85 the previous week.
In London, a barrel of Brent North Sea crude for delivery in March jumped to 55.15 dollars per barrel, from 53.52 dollars.
RUBBER: Rubber prices stretched higher on speculative interest.
“It's driven by speculators,” Corrie MacColl analyst Rashid Ahmed said.
On TOCOM, Tokyo's commodity exchange, natural rubber for July delivery jumped to 284.80 yen per kilogramme on Friday, from 263.20 yen a week earlier.
Singapore's RSS 3 April contract ended at 225.75 US cents per kilogramme on Friday, from 204.50 US cents a week earlier.
COCOA: Cocoa prices steadied in subdued trade.
Meanwhile, world cocoa consumption was forecast to be in deficit by about 131,000 tons in the current 2006/07 crop year, owing to bad weather in key producers West Africa and Indonesia, according to a report by Fortis bank.
On the LIFFE, London's futures exchange, the price of cocoa for March delivery firmed to 873 pounds per ton on Friday, from 872 pounds a week earlier.
On the New York Board of Trade (NYBOT), the March contract eased to $1,581 per ton on Friday, from $1,595 the previous week.
COFFEE: Coffee prices retreated. Sucden analyst Michael Davies said the market suffered losses during the week because of intense fund selling.
On LIFFE, Robusta quality for March delivery stood at $1,572 per ton on Friday, unchanged from a week earlier.
On NYBOT, Arabica for March delivery stood at 116.05 cents per pound on Friday, from 119.70 cents the previous week.
SUGAR: Sugar prices steadied following recent choppy trade.
By Friday on LIFFE, the price of a ton of white sugar for March delivery rose to 335.40 dollars at about 1720 GMT, compared with $332 a week earlier.
On NYBOT, the price of unrefined sugar for March delivery dipped to 10.60 US cents per pound, from 10.87 US cents the previous week.
GRAINS AND SOYA: Grains and soya prices saw their losses capped by tight global supplies.
World crops remain very tight which should support the prices, said Allendale analyst Joe Victor.
On the Chicago Board of Trade, the price of wheat for March delivery retreated to US$4.66 per bushel on Friday, from $4.68 the previous week.Maize for March delivery eased to 4.05 dollars per bushel on Friday, from $4.12 the previous week.
March-dated soyabean meal -- used in animal feed -- declined to 7.13 dollars on Friday, from $7.23 the previous week.
On the LIFFE, the price of a ton of wheat for March delivery stood at 94.10 pounds, from 96.25 pounds the previous week.
COTTON: Cotton prices weakened in line with US exports.
On the NYBOT, the March contract receded to 54.20 US cents per pound at about 1715 GMT on Friday, from 54.55 US cents the previous week.
The Cotton Outlook Index of physical cotton stood at 58.90 US cents on Thursday, compared with 59.20 a week earlier.
WOOL: The Australian wool market registered its first weekly fall of the year owing to high stockpiles.
The Eastern index slid to 9.26 Australian dollars per kilo on Friday, from $9.62 the previous week.—AFP