Commodity Blog

The technical analysis, that includes the indicators’ data and major pivot points for Brent Oil, Gold, Silver and Copper as traded on spot market as of May 19th, 2012:

Gold and silver climbed today for the second day on speculation that the Federal Reserve would stimulate the economy, boosting demand for the precious metals as a hedge against inflation. Minutes of the Fed policy meeting showed that some policy makers were considering additional stimulus. There were quite a few negative macroeconomic reports from the United States this week, giving the Fed an excuse to perform quantitative easing. Analysts warn against becoming bullish on the metals though, as just before yesterday both gold and silver had reached a lowest level this year. The rally may be in truth just a bounce on a bearish market. Gold rallied from $1,573.70 to $1,585.60 per ounce as of 19:06 GMT today on COMEX, while yesterday it surged 2.5 percent, demonstrating a biggest jump since October. Silver price was up from $28.03 to $28.59 per ounce.

Crude oil extended its losses today as concerns that the US economy is slowing added to worries about the situation in the European Union and in Greece particularly. The manufacturing index of the Federal Reserve Bank of Philadelphia unexpectedly fell from 8.5 in April to -5.8 in May. The US leading indicators dipped 0.1 percent instead of rising as was expected. June futures for delivery of crude oil slipped $0.96 to $91.60 per barrel on NYMEX. Brent crude sank from $106.98 to $106.40 per barrel (the lowest settlement since December 21) before rebounding to $107.30 on ICE today.

Latest commodity prices (ICE, NYMEX, CME) as of 15:51 GMT:

Oil (Brent) — $106.89 per barrel.
Gold — $1,573.80 per troy ounce.
Silver — $28.42 per troy ounce.
Palladium — $604.70 per troy ounce.
Copper — $347.85 per 100 pounds.
Cocoa — $2,267.00 per metric ton.
Sugar — $20.71 per 100 pounds.
Corn — $633.50 per 100 bushels.
Soybean — $1,428.50 per 100 bushels.

Latest commodity prices (ICE, NYMEX, CME) as of 23:51 GMT:

Oil (Brent) — $106.80 per barrel.
Gold — $1,574.80 per troy ounce.
Silver — $27.95 per troy ounce.
Palladium — $602.15 per troy ounce.
Copper — $346.60 per 100 pounds.
Cocoa — $2,230.00 per metric ton.
Sugar — $20.84 per 100 pounds.
Corn — $623.00 per 100 bushels.
Soybean — $1,434.25 per 100 bushels.

Gold and silver erased this year’s gains as the credit crisis in Europe continue to weaken demand for raw materials. Talks about Greece exiting the euro-union are becoming more and more serious and some analysts even speculate about collapse of the eurozone. Traders seek a safe haven amid uncertainty and economic turmoil, but it looks like the dollar took the role of refuge that was traditionally attributed to precious metals. Gold was down from $1,541.40 to $1,535.80 per ounce on COMEX yesterday, reaching $1,533.80 intraday — the lowest price since December 29. Silver fell from $27.69 to $26.90 per ounce yesterday — the lowest settlement since December 29, while today it opened at$27.21.

Wheat jumped today for the fourth trading session as bad weather in various parts of the world threatened to curb output. Russia continues to suffer from drought and parts of Kansas suffer from the same problem. Russia is the world biggest exporter. Wheat is the fourth biggest US crop and Kansas is the biggest wheat-growing region of the United States. Wheat climbed from $6.3825 to $6.4325 per bushel as of 00:51 GMT on CBoT today.

Latest commodity prices (ICE, NYMEX, CME) as of 21:59 GMT:

Oil (Brent) — $111.65 per barrel.
Gold — $1,535.80 per troy ounce.
Silver — $27.04 per troy ounce.
Palladium — $591.90 per troy ounce.
Copper — $347.50 per 100 pounds.
Cocoa — $2,279.00 per metric ton.
Sugar — $20.85 per 100 pounds.
Corn — $619.25 per 100 bushels.
Soybean — $1,421.25 per 100 bushels.

Wheat posted the biggest gain in more than two weeks as adverse weather in the United States threatens to curb output. The US Department of Agriculture estimated that 52 percent of crops were in good or excellent condition as of May 13 the Kansas, the biggest US grower, down from 60 percent in the week before. Dry weather in parts of Russia and Ukraine is expected to further reduce supply of the grain. Wheat climbed from $5.9525 to $6.0700 per bushel as of 21:09 GMT on CBoT today, posting the biggest gain since April 27.

Oil and rubber fell on political turmoil in Greece. Greek political parties failed to form a new coalition government, resulting in new election. Polls show that many Greeks favor parties that stand against austerity measures demanded from the European Union and the International Monetary Fund in exchange for a bailout. Greece may leave the eurozone and the resulting fear harm markets. Futures for delivery of crude oil in June fell $0.8 to $93.98 per barrel on NYMEX, the lowest price since December 19. Brent crude advanced from $111.13 to $111.86 on ICE today. The futures for delivery of rubber in October tumbled as much as 5.1 percent to $3,317 per metric on the Tokyo Commodity Exchange, the lowest settlement for a most-active contract since January 6.

Latest commodity prices (ICE, NYMEX, CME) as of 19:59 GMT:

Oil (Brent) — $111.72 per barrel.
Gold — $1,556.80 per troy ounce.
Silver — $27.81 per troy ounce.
Palladium — $594.65 per troy ounce.
Copper — $349.45 per 100 pounds.
Cocoa — $2,259.00 per metric ton.
Sugar — $20.39 per 100 pounds.
Corn — $597.50 per 100 bushels.
Soybean — $1,413.00 per 100 bushels.

Commodities continue to be beaten by the crisis in Europe. Oil extended its decline and gold erased this year’s gains as the dollar strengthened on the European problems, pushing commodity prices down. Greece is still unable to form a coalition government and talks about the country leaving the eurozone are becoming more serious as European politicians consider such outcome as a reality perhaps for the first time.

Crude oil has its own bearish story as Ali al-Naimi, the Saudi Arabian Minister of Petroleum and Mineral Resources, continues to call for lower prices. And it looks like he is serious about it as the Organization of the Petroleum Exporting Countries reported that Saudi Arabia ramped up production to the highest level at almost three decades.

June futures for delivery of crude oil dropped as much as $1.35 to $94.78 per barrel on NYMEX today, the lowest price since December 19. Brent grade of crude was down from $111.94 to $111.04 per barrel as of 21:19 GMT on ICE today, following the decline to $110.04 — the lowest settlement since January 25. Gold price slid from $1,563.10 to $1,561.90 on COMEX today — the lowest level since December 30.

Latest commodity prices (ICE, NYMEX, CME) as of 20:30 GMT:

Oil (Brent) — $111.06 per barrel.
Gold — $1,561.90 per troy ounce.
Silver — $28.17 per troy ounce.
Palladium — $590.55 per troy ounce.
Platinum — $1,443.60 per troy ounce.
Copper — $351.85 per 100 pounds.
Cocoa — $2,241.00 per metric ton.
Sugar — $20.27 per 100 pounds.
Corn — $611.00 per 100 bushels.
Soybean — $1,394.00 per 100 bushels.