Commodity Blog

Archive for October, 2009

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 October 31st 2009:

Survey showed that gold may go down because a rising dollar eroding appeal of the precious metal as a hedge against inflation. The U.S. Dollar Index has gained 1.3 percent from the lowest in the 14 months on October 21st. Gold have trend to move inversely to the U.S. currency. December delivery for gold went down 0.8 percent to $1,047.50 per ounce at 12:55 yesterday in New York.

Copper may fall in London on speculation the dollar will rebound, eroding demand and making metals priced in the U.S. currency more expensive for holders of other monies. Analysts said that the metal would fall next week. Three-month delivery for copper remained at $6,651 per metric ton as of 17:00 yesterday on the London Metal Exchange.

Latest commodity prices (ICE, NYMEX, CME) as of 17:44 GMT:

Oil (Brent) — $75.42
Gold — $1,038.72
Silver — $16.26
Palladium — $319.00
Platinum — $1,324.74
Copper — $6,480.00
Aluminum — $1,907.00
Nickel — $18,200.00
Zinc — $2,165.00
Cocoa — $3,303.00
Sugar — $22.84
Corn — $367.75
Soybean — $36.73

Some commodity traders are confident in the long-term oil growing prices and believe that such growth is inevitable as the oil supply is going to diminish, while the demand from world’s biggest emerging economies (like China) is going to rise. Charles MacKinnon in his interview to CNBC explains how this scenario may not be the only probable result of the events. It’s highly probably, but also a decline of oil is possible in case of the global demand slump, which could be a result of another recessive wave on the financial markets.

Corn gained and soybeans rose after the demand for raw materials and food was boosted by a weakening dollar. The greenback slid 0.8 percent against the euro. The reports signal that the economy is doing rather well, having positive influence on the grain demand.

The end-users are worried that wet weather may diminish yields and the quality of U.S. crops. Fields from Louisiana to Ohio should be mostly dry for about two weeks, while some fields from Arkansas to Illinois have received record rainfall this month. Farmers have some concerns about the harvest delays cutting yields and quality.

December futures for corn delivery gained $0.0825 (2.2 percent) to $3.7725 per bushel by 10:31 on the Chicago Board of Trade. January futures for soybean delivery rose $0.1225 (1.3 percent) to $9.8275 per bushel.

Latest commodity prices (ICE, NYMEX, CME) as of 18:06 GMT:

Oil (Brent) — $78.35
Gold — $1,045.78
Silver — $16.62
Palladium — $324.50
Platinum — $1,313.42
Copper — $6,642.00
Aluminum — $1,950.00
Nickel — $18,700.00
Zinc — $2,260.00
Cocoa — $3,354.00
Sugar — $22.71
Corn — $379.25
Soybean — $38.11

Orange-juice futures may go up in next several months because of the crop disease in Florida, the second-largest producer in the world. Cold weather in the state and increasing global demand also cause the price to rise. January delivery for orange juice went up 1.7 percent to $1.174 yesterday on ICE Futures U.S. in New York.

Sugar futures slid to the two-week low on speculation that the highest prices in 28 years are curbing demand for the sweetener. The inability of prices to rise above $0.245 signals that major consuming countries including India, the largest user in the world, are cutting purchases. March futures for raw-sugar delivery slid $0.0072 (3.2 percent) to $0.2193 per pound on ICE.

Latest commodity prices (ICE, NYMEX, CME) as of 20:12 GMT:

Oil (Brent) — $75.77
Gold — $1,028.03
Silver — $16.16
Palladium — $314.50
Platinum — $1,308.00
Copper — $6,457.00
Aluminum — $1,924.00
Nickel — $17,875.00
Zinc — $2,190.00
Cocoa — $3,325.00
Sugar — $21.90
Corn — $369.25
Soybean — $37.32

Gold slid on speculation that the dollar will extend a rally, eroding appeal of the precious metal as an inflation hedge. The greenback advanced for a fourth straight session against a basket of six major currencies. Gold futures often move inversely to the U.S. currency.

Gold doesn’t have much buying interest. Expectations of a drop in a futures signal that a growing proportion of market players consider the current gold price as unsustainable. This concern can put gold under considerable pressure.

December futures for gold delivery slid $4.90 (0.5 percent) to $1,037.90 per ounce by 10:56 on the Comex division of the New York Mercantile Exchange, ending a four-session decline, the longest fall since the period ended August 10th.

Latest commodity prices (ICE, NYMEX, CME) as of 17:11 GMT:

Oil (Brent) — $77.37
Gold — $1,036.61
Silver — $16.65
Palladium — $326.00
Platinum — $1,318.90
Copper — $6,580.00
Aluminum — $1,983.00
Nickel — $18,545.00
Zinc — $2,300.00
Cocoa — $3,347.00
Sugar — $22.68
Corn — $372.50
Soybean — $38.15