LONDON, May 18: Cotton prices rebounded thanks to a positive snapshot on demand for US supplies, which helped to staunch recent losses caused by US plans to award massive subsidies to farmers in a move likely to encourage greater production.
Oil prices endured a volatile run this week as signs of a supply squeeze on the horizon tugged against an easing of concerns in the market about the potential risk to Gulf oil supplies posed by the Middle East conflict.
The focus has already begun to switch from the Middle East. People are now more concerned about the prospect of supply shortages.
As such, global economic data and stock levels hold the key, said Lawrence Eagles, an analyst at the GNI brokerage.
Gold found a steadier footing as prices consolidated after their recent rally, while silver and the platinum group metals also made headway.
Some of the soft commodities also put on a strong performance, notably cocoa futures, which rallied to their highest level for 14 years as speculators waded into the market ahead of details on the size of the mid-season crop.
GOLD: Gold prices paused for breath around 310 dollars an ounce after a recent rally ran out of steam, tracking movements in the value of the dollar.
Friday afternoon, an ounce of gold was fixed in London $310.6 an ounce, against $311.15 a week earlier.
After being mired in a narrow range around $270 an ounce for most of the past two years, gold prices have enjoyed a revival in recent weeks, climbing to two-year high points above $310.
SILVER: Silver prices gained ground on the firm tone of the gold market and hopes of a recovery in industrial demand.
The price of silver climbed to $4.64 an ounce on Friday afternoon from $4.6225 the previous week.
PALLADIUM and PLATINIUM: Platinum group metals (PGM) gained thanks to a keenly watched report by the Johnson Matthey brokerage which upgraded its demand estimates for 2001.
Friday afternoon, platinum prices stood at $522 an ounce from 521 the previous week.
Palladium prices were flat at $352 an ounce.
BASE METALS: Most base metals prices were on the back foot again despite signs of a nascent revival in US industry, which failed to assuage concerns about the strength of the recovery in the world’s largest economy.
The sector is looking very weak,said SG Securities analyst Stephen Briggs.
Among the other metals, zinc prices picked up $58 to $777 a ton, tin shed $10 to $4,190 a ton and lead dropped $12 to $458 a ton.
OIL: Oil prices see-sawed after an easing of Middle East tensions and the prospect of increased supplies from Russia reined in a brief rally that took prices to eight-month highs earlier in the week.
By Friday, Brent crude for July delivery was trading at $25.88 a barrel, down 27 cents from a week earlier.
In New York, June-dated light sweet crude futures were quoted at $27.30 a barrel, down 68 cents over the week.
Prices rose as high as $28.79 a barrel on Tuesday in New York a level not seen since the immediate aftermath of the September 11 attacks on the United States.
Traders said the rally was fueled by data showing an unexpectedly sharp decline in US stock levels, and expectations of a recovery in demand.
RUBBER: Rubber prices edged higher after strong rains in the world’s leading production areas disrupted recent harvesting efforts.
SUGAR: Sugar prices rallied this week amid rumours that the amount of Brazil’s record crop which will be put aside for export will be less than previously expected.
On the CSCE in New York, a pound of unrefined sugar for July delivery rose to 5.98 cents from 5.44 cents the previous week, scaling four-month highs.
GRAINS: Grain prices climbed in Chicago despite high levels of investment-fund selling thanks to expectation-busting weekly US export figures and concerns about adverse weather conditions.
COTTON: Cotton prices rebounded thanks to a positive snapshot on demand for US supplies, which helped to staunch recent losses caused by US plans to award massive subsidies to farmers in a move likely to encourage greater production.
In New York, the July contract climbed to 35.48 cents a pound on Thursday from 33.95 cents the previous week.
The Cotton Outlook Index of physical cotton, the average of the world’s lowest prices, gained to 39.60 cents a pound from 39.30 cents the week before.
WOOL: Wool prices dipped owing to a rise in the value of the Australian dollar.—AFP