Commodity Blog

Archive for July, 2009

On the gold chart (weekly timeframe) formed symmetrical triangle pattern. It has a high probability of bullish breakout. But before any breakout it will reach its upper sloping limit one more time. But traders should be careful because it’s not horizontal. Click to enlarge the image to full-size screenshot:

China may overcome India in demand for gold. China became the first of the major economies to restore from the worldwide economical decline resulting in possibility that the country would become the world’s biggest consumer of gold this year. Demand for gold in China rose to 105.2 tons from 103.3 tons (1.8 percent) while purchases from India in the first quarter fell to 17.7 metric tons from 107.2 tons (83 percent) a previous year.

Concern that U.S. may change index-fund rules causes wheat prices to fall today. Gary Gensler, the chairman of the Commodity Futures Trading Commission, told a Senate subcommittee this week that the agency is planning to phase out waivers that allow index traders to exceed position limits with the goal to bring cash prices and futures closer. September futures for wheat fell $0.0425 (0.8 percent) to $5.275/bushel by 9:47 on CBoT.

De Beers sales dropped most on gem demand since 1974. The largest diamond company in the world, De Beers, reported the greatest fall in sales of unpolished and uncut gems since at least 1974 because demand slumped in the U.S., Europe and Japan as result of the worldwide economical decline. De Beers reported today that first-half sales of rough diamonds fell to $1.4 billion (57 percent) and production slid to 6.6 million carats (73 percent) as result of shutting down mines in Botswana and Namibia by the Johannesburg-based company.

Latest commodity prices (ICE, NYMEX, CME) as of 14:30 GMT:

Oil (Brent) — $69.28
Gold — $952.90
Silver — $13.82
Platinum — $1,175.67
Palladium — $256.00
Copper — $5,550.00
Aluminium — $1815.00
Nickel — $16,600.00
Zinc — $1697.00
Cocoa — $2,880.00
Sugar — $18.34
Corn — $327.00
Soybean — $34.75

Hershey Co. speculation that demand will rise with reviving economy caused cocoa to go up today. The company reports a 5.9 percent increase in second-quarter sales to $1.171 billion thus making Hershey to rise to the highest since September on the New York Stock Exchange. September futures for cocoa went up $125 (4.5 percent) to $2,877/metric ton as of 10:55 on ICE Futures  U. S. in New York.

Speculation about increasing demand for grain from the the world’s biggest shipper, the U.S., causes wheat prices go up today. Japan bought 87,000 tons from the U.S. and South Korea’s biggest feed-grain buyer, Nonghyup Feed Inc., reported it is seeking 55,000 tons. September futures for wheat gained $0.0475 (0.9 percent) to $5.2675/bushel by 11:21 on CBoT.

Dollar falls causing gold to go up to five-week high today making it a good alternative investment. «There are good reasons to believe the dollar should weaken, and in that case, gold will be a beneficiary, but it’s not necessarily going to occur overnight» reports Patrick Chidley, an analyst at Barnard Jacobs Mellet LLC. August futures for gold gained $2.50 (0.3 percent) to $955.80 at 11:30 on the Comex division of the New York Mercantile Exchange.

Latest commodity prices (ICE, NYMEX, CME) as of 16:38 GMT:

Oil (Brent) — $69.46
Gold — $956.22
Silver — $13.82
Platinum — $1,175.81
Palladium — $256.00
Copper — $5,511.00
Aluminium — $80.00
Nickel — $16,400.00
Zinc — $1682.00
Cocoa — $2,878.00
Sugar — $18.29
Corn — $325.00
Soybean — $34.67

Beef demand falls, hogs slump today. Cattle futures dropped the most in seven weeks resulting in concern that beef demand is wane as the recession continues while hogs fell to the lowest since February. October futures for cattle dropped $0.01025 (1.1 percent) to $0.901/pound by 10:42 on CME.

Supply concerns rise causing sugar gain today. Demand in the world will surpass production resulting in concern that the worldwide supply deficit will increase. October futures for raw-sugar gain $0.0007 (0.4 percent) to $0.1787/pound as of 12:04 on ICE Futures  U. S. in New York.

The falling dollar increased the attractiveness of precious metals as an alternative investment causing gold to go up today. Federal Reserve Chairman Ben S. Bernanke reimplemented a plan to keep benchmark U.S. lending rates at historic lows for a continuous period. August futures for gold increased $5.50 (0.6 percent) to $952.40/ounce at 12:39 on the New York Mercantile Exchange’s Comex division.

Latest commodity prices (ICE, NYMEX, CME) as of 17:01 GMT:

Oil (Brent) — $66.91
Gold — $953.25
Silver — $13.71
Platinum — $1,166.47
Palladium — $252.50
Copper — $5,541.00
Aluminium — $78.500
Nickel — $16,281.00
Zinc — $1695.00
Cocoa — $2,763.00
Sugar — $17.92
Corn — $307.25
Soybean — $34.61

Copper went up in New York today. Demand for metals used in construction and automobiles rises because of recovering economies making copper go up in New York and London. September futures for copper gained $0.0045 (0.2 percent) to $2.4735/pound at 8:28 on the Comex division of the New York Mercantile Exchange.

Gold may go up as a declining dollar rises demand for the metal as an alternative investment. The dollar fell 1.7 percent against the single European currency while gold futures gained 2.4 percent this month. August futures for gold gained $1.60 (0.2 percent) to $950.40/ounce on NYMEX by 8:32.

Crude oil and gasoline rises today as earnings cause contraction to stop. Earnings at Caterpillar Inc. was better than expected potentially making contraction to stop in the world’s biggest fuel-consuming country resulting in rise of crude oil rose and gasoline. Futures reached $65.53, the highest since July 6th. Crude oil for August delivery gained $0.86 (1.3 percent), to $64.84/barrel as of 10:23 on NYMEX.

Latest commodity prices (ICE, NYMEX, CME) as of 16:11 GMT:

Oil (Brent) — $66.48
Gold — $947.83
Silver — $13.57
Platinum — $1,177.89
Palladium — $254.00
Copper — $5,382.00
Aluminium — $78.750
Nickel — $15,880
Zinc — $1648.00
Cocoa — $2,867.00
Sugar — $17.86
Corn — $314.75
Soybean — $34.94

Dollar falls making gold to rise today. A weaker dollar and higher oil prices increased the attractiveness of gold as a hedge against inflation and an alternative investment. Gold futures for August delivery gained $12.50 (1.3 percent) to $950/ounce at 10:25 on New York Mercantile Exchange’s Comex division.

Skepticism about demand causes oil to fluctuate today. An Energy Department reports that fuel demand in U.S. in the week ended July 10th was lower by 6.7 percent than a previous year. Crude oil for August delivery dropped $0.27 (0.4 percent) to $63.29/barrel at 11:08 on the NYMEX. Futures went up $1.34 and fell $0.34 today. Oil rose 42 percent this year.

Speculation that production in Kansas will top estimates causes wheat prices slump today. Great harvest (especially in northwestern Kansas) may yield as much as 372 million bushels in the state. Wheat futures for September delivery dropped $0.04 (0.7 percent) to $5.3775/bushel at 10:50 on the CBoT.