Commodity Blog

Archive for September, 2009

Platinum and palladium gain as the dollar declines, boosting appeal of the metals as an inflation hedge. The U.S. economy shrank at a 0.7 percent annual rate in the second quarter. January futures for platinum delivery rose $24.70 (1.9 percent) to $1,302.90 per ounce on the New York Mercantile Exchange. December futures for palladium delivery gained $9.20 (3.2 percent) to $299.20 per ounce in New York.

Coffee advanced because of speculation that demand will rise in the U.S. with recovery from the global economic recession. Price is also boosted by the decline of dollar, increasing the appeal of some commodities. The dollar tumbled 0.8 percent against a basket of six major currencies. December futures for Arabica coffee delivery advanced $0.023 (1.8 percent) to $1.278 per pound on ICE Futures U.S. in New York.

Latest commodity prices (ICE, NYMEX, CME) as of 19:14 GMT:

Oil (Brent) — $68.89
Gold — $1,004.98
Silver — $16.58
Palladium — $294.00
Platinum — $1,283.87
Copper — $6,180.00
Aluminum — $1,891.00
Nickel — $17,800.00
Zinc — $1,950.00
Cocoa — $3,144.00
Sugar — $23.79
Corn — $343.00
Soybean — $33.97

Gold gained in New York as the dollar declined, boosting the appeal of the precious metal as a hedge against inflation. The greenback fell 5.2 percent against the basket of six major currencies. December futures for gold December delivery gained $0.30 to $994.40 per ounce on the Comex division of the New York Mercantile Exchange.

Cotton prices slumped to the lowest in two weeks after an unexpected decline in consumer confidence in the U.S. caused speculation that the economic recovery may be slowing. Clothing sales go up when consumers are feeling confident and suffer when people are feeling a little less confident. Jobless rate in the U.S. is predicted to reach 10 percent this year. December futures for cotton delivery slid $0.0148 (2.4 percent) to $0.6142 per pound as of 11:42 on ICE Futures U.S. in New York.

Latest commodity prices (ICE, NYMEX, CME) as of 19:27 GMT:

Oil (Brent) — $65.30
Gold — $993.05
Silver — $16.16
Palladium — $285.00
Platinum — $1,274.10
Copper — $5,981.00
Aluminum — $1,849.00
Nickel — $17,000.00
Zinc — $1,890.00
Cocoa — $3,065.00
Sugar — $23.30
Corn — $342.00
Soybean — $33.35

Soybean harvest may rise to a record in Brazil, the second biggest soybean producer in the world, next year as declining prices for corn makes farmers shy away from planting it. Crop is also helped by the above-average rains in major producing regions. Forecast for soybean output this year, according to Brazil’s Agriculture Ministry, is 57.09 million metric tons on September 8th, compared to last month’s estimate of 57.11 million.

Corn gained on signs that smaller harvest in China and Argentina may boost demand for supplies from the U.S., the biggest producer and exporter in the world. Chinese Production may drop to 148.8 million metric tons (10 percent), down from a record 165.9 million last year as dry weather damaged crops. Argentina may plant the smaller crop after the government delayed plans to lift a ban on exports. Decreasing global corn yield makes U.S. export potential bullish. December futures for corn delivery advanced $0.0475 (1.4 percent) to $3.3875 per bushel as of 11:15 on CBoT.

Cotton prices rose in New York after a report about slower Chinese production. Cotton production in China may fall to 7.02 million tons this year (9.9 percent down from last year). December futures for cotton delivery gained $0.0087 (1.4 percent) to $0.6281 per pound by 12:28 on ICE Futures U.S. in New York.

Latest commodity prices (ICE, NYMEX, CME) as of 19:13 GMT:

Oil (Brent) — $65.59
Gold — $989.97
Silver — $16.13
Palladium — $287.50
Platinum — $1,273.34
Copper — $5,982.00
Aluminum — $1,830.00
Nickel — $16,750.00
Zinc — $1,877.00
Cocoa — $3,075.00
Sugar — $22.74
Corn — $339.25
Soybean — $33.29

On the daily September sugar futures chart a downward symmetrical triangle pattern has formed. As you can see on the image, price is near the apex of pattern. Breakout is possible here soon. As this is a continuation pattern and sloped downward, the breakout will most likely be bearish. Click to enlarge the image to a full-size screenshot:

A similar chart pattern has formed on the daily zinc chart. As you can see on the image, the price is rather far away from the apex of pattern. Breakout is possible in near future. Considering a long-term bullish trend on zinc, the breakout will most likely be upward. Click to enlarge the image to a full-size screenshot:

Copper advanced as the declining dollar boosted demand for the metal as an alternative investment. Some buyers invest in dollar-based commodities as the currency declines to preserve purchasing power. December futures for copper delivery advanced $0.019 (0.7 percent) to $2.785 per pound by 10:27 on the New York Mercantile Exchange’s Comex division.

Sugar gained for the first time in three days after forecast that global supplies are shrinking because of adverse weather, cutting cane harvests in Brazil and India, the largest producers in the world. The global deficit in the year starting October 1st may reach 8.3 million metric tons up from a June estimate of 5.1 million tons. March futures for raw-sugar delivery gained $0.0025 (1.1 percent) to $0.2317 per pound as of ICE Futures U.S. in New York.

Latest commodity prices (ICE, NYMEX, CME) as of 18:28 GMT:

Oil (Brent) — $65.08
Gold — $989.80
Silver — $16.05
Palladium — $290.00
Platinum — $1,293.22
Copper — $6,002.00
Aluminum — $1,813.00
Nickel — $16,950.00
Zinc — $1,875.00
Cocoa — $3,076.00
Sugar — $21.70
Corn — $334.00
Soybean — $34.01

White sugar dropped to two-week low in London as prices tumbled in New York yesterday, signaling slowing demand. Prices also fell after the dollar rebounded, decreasing the attractiveness of commodities as a hedge against inflation. December delivery for white sugar dropped $13.10 (2.2 percent) to $571.40 per ton on the Liffe exchange.

Corn futures gained for a third day because of forecast that frost, expected next week in some parts of the northern Midwest, may reduce the size and quality of the crop in the U.S., the largest grower and exporter in the world. Crop loss may reach 13.2 billion bushels. December futures for corn delivery gained $0.0575 (1.7 percent) to $3.36 per bushel as of 11:37 on CBoT.

Hog futures slumped as U.S. pork prices declined on speculation that meat production may not be decreased enough to cope with dropping demand. Combination of low exports and domestic demand makes the pork market weak. The swine flu also discouraged people from buying pork. December settlement for hog futures slumped $0.0045 (0.9 percent) to $0.496 per pound by 12:22 on the Chicago Mercantile Exchange.