LONDON, June 16: Commodity prices diverged this week as traders reacted to fresh eurozone turmoil and stimulus hopes ahead of crucial weekend elections in Greece.
Markets also won brief support early in the week after a deal was struck to bailout Spanish banks.
Sugar prices diverged as traders balanced tight supply worries against macroeconomic weakness.
By Friday on LIFFE, the price of a ton of white sugar for delivery in August dipped to $571.20 from $572.20 a week earlier.
On NYBOT-ICE, the price of unrefined sugar for July grew to 20.18 US cents a pound from 19.83 cents.
Coffee prices hit two-year lows at 150.70 US cents a pound in New York on expectations of ample Brazilian supplies.
By Friday on NYBOT-ICE, Arabica for delivery in September stood at 152.30 US cents a pound compared with 155.55 centsfor the July contract a week earlier.
On LIFFE, Robusta for delivery in September traded at $2,108 a ton compared with $2,095 for July.
Cocoa futures rose for a second week.
By Friday on LIFFE, London's futures exchange, cocoa for delivery in July gained to £1,579 a ton from £1,520 a week earlier.
In New York on the NYBOT-ICE, cocoa for July climbed to $2,250 a ton from $2,185.
Base metals prices mostly advanced over the week despite some subdued trading which saw aluminum hit near two-year lows, with sentiment lifted late on by stimulus hopes.
The Hong Kong stock exchange meanwhile on Friday announced that it had agreed to buy the London Metal Exchange for £1.39 billion ($2.18 billion, 1.72 billion).
“Pressure on the (base metals) complex is likely to be sustained in the near-term as concerns remain with respect to the US economy, the euro crisis and a moderation in economic activity across the emerging markets,” said Deutsche Bank analyst Alison Taylor.
Hong Kong Exchanges and Clearing (HKEx) said its bid for the 135-year-old LME Holdings would allow it to “develop its own commodity offering and to diversify its revenue sources.”
HKEx chief executive Charles Li added in a statement: “The acquisition of LME Holdings represents a unique opportunity for us to acquire in one stroke a position of global leadership in the commodities market.”
The company said its purchase of the LME would boost its role as the bridge between China and international markets, and fulfilled a “key strategic priority” for HKEx to expand into commodities.
The LME is the world's largest exchange trading nonferrous metals, including copper and aluminum, while HKEx is the world's biggest exchange operator by market value.
By late Friday on the London Metal Exchange, copper for delivery in three months jumped to $7,516.50 a ton from $7,291 a week earlier.
RUBBER: Prices rose as traders tracked events in the eurozone.
By Friday, the Malaysian Rubber Board's benchmark SMR20 climbed to 286.05 US cents a kilo from 280.55 cents the previous week. —AFP