Commodity Blog

Archive for July, 2009

Steel prices in the U.S. rose for the first time this year today. The decline of steel consumption reached a bottom for the current business cycle and should begin to restore gradually as distributors began restocking their severely depleted inventories. U.S. steel rose $1.12 (3 percent) to $38.61 yesterday in NYSE.

Dollar’s slide causes wheat gain today. Wheat prices increase as speculation that dollar decline will continue leads to expectations for increase in the U.S. grain export. But there is anxiety that if dollar would rebound exports can fall back. September futures for wheat gained $0.0525 (1 percent) to $5.215 per bushel by 10:41 on CBoT.

Latest commodity prices (ICE, NYMEX, CME) as of 16:02 GMT:

Oil (Brent) — $70.43
Gold — $952.76
Silver — $13.84
Platinum — $1,191.00
Palladium — $259.00
Copper — $5,715.00
Aluminum — $1,890.00
Nickel — $17,850.00
Zinc — $1,740.00
Cocoa — $2,895.00
Sugar — $18.59
Corn — $338.00
Soybean — $35.12

India, the world’s largest consumer of the sweetener, increases imports causing sugar to rise today. Demand for sugar in India exceeds local production as a result from low harvest of cane caused by excess rainfalls. October futures for raw-sugar increased $0.0019 (1 percent) to $0.1875 per pound as of 9:47 on ICE Futures U.S. in New York.

Improved economic expectations cause copper to restore from one-week low today. As the global recession is easing expectations for economic improvement in the U.S. and Europe cause copper prices to rebound. September delivery for copper increased $0.08 (3.2 percent) to $2.5575 per pound by 12:13 on NYMEX.

Latest commodity prices (ICE, NYMEX, CME) as of 16:49 GMT:

Oil (Brent) — $69.73
Gold — $934.30
Silver — $13.48
Platinum — $1,177.86
Palladium — $257.00
Copper — $5,615.00
Aluminum — $1,878.00
Nickel — $17,080.00
Zinc — $1,706.00
Cocoa — $2,900.00
Sugar — $18.75
Corn — $332.50
Soybean — $35.17

Texas may be relieved from drought by El Nino. The worst drought in Texas for 90 years causing concerns for crop harvest may be ended by the return of an El Nino climate pattern to the Pacific Ocean, characterized by warming waters. Damage to orange groves in Florida by hurricanes can also be reduced. The concern for harvest of U.S. crops caused cotton to gain a 10-month high on July 21 on ICE Futures U.S. in New York, while prices for orange-juice have increased 39 percent this year.

Hogs decline as heavy animals may cause glut. Hog producers are trying to make money by overfeeding hogs and this cause concern about a pork glut leading to drop in hog futures. October futures for hog dropped $0.0055 (1 percent) to $0.5215 per pound by 9:48 on the Chicago Mercantile Exchange.

The world’s largest mining company, BHP Billiton Ltd., agreed to sell 30 percent of its iron ore under new pricing system putting an end for tradition of settling annual contracts in Asia. The ore will be sold through a mix of cash, quarterly and indexed pricing. BHP dropped 1.6 percent to $37.43 as of the 16:10 Sydney time close on the Australian stock exchange.

Latest commodity prices (ICE, NYMEX, CME) as of 16:20 GMT:

Oil (Brent) — $66.77
Gold — $928.28
Silver — $13.28
Platinum — $1,192.39
Palladium — $251.50
Copper — $5,408.00
Aluminum — $1,794.00
Nickel — $16,325.00
Zinc — $1,648.00
Cocoa — $2,807.00
Sugar — $18.43
Corn — $318.00
Soybean — $33.46

The dollar recovers against the euro causing gold to fall today. As the dollar and gold are moving inversely every month since April the dollar rebound against the euro makes gold less appealing as an alternative investment. August futures for gold fell $12.80 (1.3 percent) to $940.70 per ounce as of 9:30 on the New York Mercantile Exchange’s Comex division.

Aluminum gained for an 11th day making the longest advance in at least 22 years. Demand from manufacturers is recovering and speculation can and car producers will need more of the aluminum cause the metal to increase. LME for aluminum delivery in three months rose $17 (0.9 percent) to $1,843 per metric ton at 13:26 local time.

Latest commodity prices (ICE, NYMEX, CME) as of 14:38 GMT:

Oil (Brent) — $69.29
Gold — $942.28
Silver — $13.83
Platinum — $1,211.09
Palladium — $258.50
Copper — $5,525.00
Aluminium — $1,832.00
Nickel — $16,800.00
Zinc — $1,703.00
Cocoa — $2,907.00
Sugar — $18.14
Corn — $321.00
Soybean — $33.88

Sugar went above the 3-year high level on ICE Futures in New York today. The shortfall of this commodity in India (which is the world leading consumer of sugar) and the elevated global level of deficit spur speculations among the traders that the sugar will continue rising in the world. Analysts believe that the global hedge funds will increase their positions in sugar on deficit expectations. October delivery sugar futures rose to $0.1847/pound on ICE as of 11:11 today — that’s 0.2 percent compared to the Friday’s close level.

The platinum is expected to grow back to $1,500 level per ounce during next two years, according to some commodity analysts. The gain in demand conjoined with the decline of the supply from the South African mines can lead to a slow recovery of this industrial and precious metal. Platinum immediate delivery contracts rose to $1,199.75 per ounce (or 1 percent) during today’s trading session at SICOM as of 11:30.

Latest commodity prices (ICE, NYMEX, CME) as of 18:48 GMT:

Oil (Brent) — $70.82
Gold — $954.13
Silver — $14.02
Platinum — $1,207.20
Palladium — $260.00
Copper — $5,570.00
Aluminium — $1,822.00
Nickel — $16,781.00
Zinc — $1705.00
Cocoa — $2,879.00
Sugar — $18.47
Corn — $322.00
Soybean — $33.51