Commodity Blog

Copper extended its rally today after data on nonfarm payrolls eased concerns for US economy. The report on employment change released today showed much smaller decline of work places than was estimated (54,000 compared to predicted 101,000). December futures for copper delivery advanced $0.0125 (0.4 percent) to $3.508 per pound by 10:24 on COMEX.

Wheat prices advanced today as demand for supplies from the US increased after Russia extended its ban on exports. Prime Minister Vladimir Putin announced yesterday that Russia would extend a grain-export ban till the end of the next harvest. At the same time, US exporters sold 110,000 metric tons of wheat to Egypt and 275,000 tons to other buyers. Global stockpiles may fall to 174.8 million tons by the end of the marketing year on May 31st. December futures for wheat delivery gained $0.1775 (2.5 percent) to $7.315 per bushel at 10:33 on CBoT.

Crude oil fell today as decline of service industries in the US caused speculation that demand may drop. The Institute for Supply Management Purchasing Managers’ Index showed a decrease from 54.3 to 51.5 in August. October delivery for crude oil fell $1.51 (2 percent) to $73.51 per barrel as of 11:53 on NYMEX.

Latest commodity prices (ICE, NYMEX, CME) as of 16:09 GMT:

Oil (Brent) — $75.83
Gold — $1,248.90
Silver — $19.80
Palladium — $529.00
Platinum — $1,556.17
Copper — $7,656.00
Aluminum — $2,148.00
Nickel — $21,690.00
Zinc — $2,152.80
Cocoa — $2,719.00
Sugar — $20.75
Corn — $450.75
Soybean — $1028.00

Copper prices jumped today as unexpected growth of pending home sales and improving labor market in the US suggest that demand for the industrial metal may increase. Pending home sales showed a growth by 5.2 percent in July instead of an expected decline. Claims for unemployment benefits fell from 478,000 to 472,000 last week. December futures for copper delivery rose $0.018 (0.5 percent) to $3.4955 per pound as of 13:17 on COMEX.

Gold rallied today on forecast that central banks around the world would keep interest rates at present levels. The European Central Bank decided today to keep the benchmark interest rate at the record low level of 1 percent. The Federal Reserve has kept the US benchmark rate near 0.25 percent since December 2008. December futures for gold delivery gained $5.30 (0.4 percent) to $1,253.40 by 13:46 COMEX.

Latest commodity prices (ICE, NYMEX, CME) as of 18:26 GMT:

Oil (Brent) — $76.85
Gold — $1,251.12
Silver — $19.62
Palladium — $522.00
Platinum — $1,546.28
Copper — $7,646.00
Aluminum — $2,144.00
Nickel — $21,700.00
Zinc — $2,162.00
Cocoa — $2,691.00
Sugar — $20.72
Corn — $433.00
Soybean — $1007.50

Raw-sugar futures gained today on concerns that drought may threaten harvest in Brazil, the largest producer. Harvest of sugar-cane in Brazil’s Center South, the biggest growing region in the world, may be lower than estimated 570 million metric tons if dry weather persists. October delivery for raw sugar rose $0.0063 (3.2 percent) to $0.2038 per pound as of 10:48 on ICE.

While in some countries wheat harvest is also threatened by drought, in Europe wheat faces other danger: excessive rains. Wheat prices jumped on speculation that Germany and some other countries of the Western European Union would have too much rain and also after Egypt bought 225,000 metric tons of wheat from the US. December futures for wheat delivery gained $0.23 (3.4 percent) to $7.0875 per bushel by 13:15 on CBoT.

Crude oil prices jumped today after manufacturing in the US and China expanded in August faster than expected. ISM PMI in the US rose from 55.5 to 56.3 in August. October settlement for crude oil (Brent) went up $1.71 (2.3 percent) to $76.35 per barrel on ICE.

Latest commodity prices (ICE, NYMEX, CME) as of 19:39 GMT:

Oil (Brent) — $76.36
Gold — $1,244.96
Silver — $19.30
Palladium — $515.00
Platinum — $1,530.60
Copper — $7,620.00
Aluminum — $2,103.00
Nickel — $21,176.00
Zinc — $2,149.00
Cocoa — $2,707.00
Sugar — $20.40
Corn — $432.25
Soybean — $1005.00

Hogs futures gained today on speculation that prices declined too much last week, considering strong demand in the US. Exports of meat rose, also adding to demand. October futures for hog settlement rose $0.00275 (0.4 percent) to $0.7515 per pound by 13 on CME.

Soybean prices dropped today on speculation that demand in China and the US may slow after prices surged. November futures for soybean delivery slid $0.125 (1.2 percent) to $10.10 per bushel as of 13:15 on CBoT, the biggest drop since August 19th. December futures for soybean-oil delivery dropped $0.0048 (1.2 percent) to $40.05 per pound.

Corn slipped today as rains improved outlook for wheat output and on speculation that demand for ethanol would fall after oil prices declined. Speculators continue to bet on price increase, anyway. December futures for corn delivery fall $0.0225 (0.5 percent) to $4.3925 per bushel on CBoT.

Latest commodity prices (ICE, NYMEX, CME) as of 20:08 GMT:

Oil (Brent) — $74.44
Gold — $1,247.65
Silver — $19.30
Palladium — $499.50
Platinum — $1,519.19
Copper — $7,405.00
Aluminum — $2,045.00
Nickel — $20,715.00
Zinc — $2,074.80
Cocoa — $2,698.00
Sugar — $19.76
Corn — $426.50
Soybean — $1005.25

Wheat prices hit the highest level in a week today on an outlook for reduced output from Argentina and Russia because of drought. Global inventories may decline 9.9 percent to 174.8 million metric tons. December futures for wheat delivery gained $0.215 (3.1 percent) to $7.165 per bushel as of 11:21 on CBoT. Concerns about adverse weather boosted wheat futures, causing them to rise 45 percent since the end of June.

Gold fluctuated today, but expected to resume its rally as faltering economic recovery and declining US equities increased demand for the metal as a safe haven. US stocks dropped after a government report showed that personal income rose less than predicted. The gross domestic product rose 1.6 percent in the second quarter of 2010, less than estimated in the previous month. December futures for gold delivery slid $0.5 to $1,237.40 per ounce by 11:25 on COMEX. Gold prices advanced 13 percent this year, touching the record level of $1,266.50 per ounce in June.

Latest commodity prices (ICE, NYMEX, CME) as of 16:30 GMT:

Oil (Brent) — $76.44
Gold — $1,236.25
Silver — $19.09
Palladium — $497.00
Platinum — $1,527.24
Cocoa — $2,672.00
Sugar — $19.59
Corn — $426.75
Soybean — $1020.75