Commodity Blog

Archive for November, 2009

Wheat gained as the falling dollar increased appeal of U.S. exports and attractiveness of the commodity as an inflation hedge. Wheat prices also rose on concern that some U.S. farmers were unable to plant winter crops because of heavy rains, delaying the harvest and access to the fields. March futures for wheat delivery gained $0.075 (1.3 percent) to $5.7725 per bushel by 10:37 on the Chicago Board of Trade.

Crude oil advanced on outlook for the economic recovery, after a report showed that business activity in the U.S., the biggest energy-consuming country in the world, grew for a second month. Other news, like oil supertanker, captured by Somali pirates, and straining relationship between Iran and international community because of Iran nuclear program, supported the bullish trend for oil. January delivery for crude oil advanced $0.37 0.5 percent $76.42 per barrel as of 11:07 on NYMEX.

Latest commodity prices (ICE, NYMEX, CME) as of 19:12 GMT:

Oil (Brent) — $77.34
Gold — $1,174.00
Silver — $18.33
Palladium — $363.00
Platinum — $1,447.73
Copper — $6,960.00
Aluminum — $2,060.00
Nickel — $16,325.00
Zinc — $2,218.80
Cocoa — $3,214.00
Sugar — $22.55
Corn — $398.75
Soybean — $40.56

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 November 28th 2009:

If you have any questions or comments on this technical analysis, please, feel free to reply below.

Dubai’s attempt to delay debt repayments made traders shun assets, which they perceive as carrying greater risk, causing decline in prices for commodities, including copper and cotton. The dollar rebound versus six major currencies also caused decline in prices for commodities. March futures for copper delivery declined $0.0715 (2.2 percent) to $3.1255 per pound on the Comex division of the New York Mercantile Exchange. March futures for cotton delivery dropped $0.0138 (1.8 percent) to $0.7384 per pound on ICE Futures U.S. in New York.

Sugar prices rose New York as growing global demand increased sales. Sugar prices climbed 93 percent this year as bad weather conditions inflicted cane yield in Brazil and India, causing a worldwide deficit. Prices were also aided by demand from Bangladesh, Pakistan and Indonesia. March futures for raw-sugar delivery increased $0.0045 (2 percent) to $0.2277 per pound on ICE.

Latest commodity prices (ICE, NYMEX, CME) as of 19:12 GMT:

Oil (Brent) — $77.11
Gold — $1,176.83
Silver — $18.26
Palladium — $362.00
Platinum — $1,437.84
Copper — $6,855.00
Aluminum — $2,015.00
Nickel — $16,275.00
Zinc — $2,235.00
Cocoa — $3,235.00
Sugar — $22.77
Corn — $397.50
Soybean — $40.48

Latest commodity prices (ICE, NYMEX, CME) as of 20:13 GMT:

Oil (Brent) — $77.05
Gold — $1,191.88
Silver — $18.61
Palladium — $366.50
Platinum — $1,476.00
Copper — $6,825.00
Aluminum — $2.010.00
Nickel — $16,625.00
Zinc — $2,260.00
Cocoa — $3,320.00
Sugar — $22.32
Corn — $408.00
Soybean — $40.99

Copper slid in London as growing inventories and the rebounding dollar pushed down demand for the metal. Stockpiles monitored by the London Metal Exchange increased 0.1 percent to 432,075 metric tons, the highest level since April 23rd. March delivery for copper slid 2.3 percent to $3.1245 per pound on NYMEX.

Gold imports by India, the greatest buyer in the world, declined for the seventh straight month as record prices decreased demand for the precious metal. Gold prices touched a record for a third time this week as falling dollar boosted attractiveness of the metal as an inflation hedge. Immediate delivery for gold for dropped 0.7 percent to $1,183.15 per ounce.

Hog futures reached the record level in six months as increasing wholesale pork prices caused speculation about rising demand for the meat. Coming Thanksgiving causes increase in demand for turkey and ham, which is positive for hogs prices. February futures for hog settlement added $0.0165 (2.5 percent) to $0.6765 per pound by 9:57 on the Chicago Mercantile Exchange.

Corn advanced on expectation that a declining dollar will boost demand for commodities as a hedge against inflation. Traders tend to invest in commodities when greenback falls to preserve their purchasing power. March futures for corn delivery advanced $0.1475 (3.8 percent) to $4.0675 per bushel as of 11:51 on CBT.

Latest commodity prices (ICE, NYMEX, CME) as of 18:09 GMT:

Oil (Brent) — $77.75
Gold — $1,185.93
Silver — $18.70
Palladium — $368.23
Platinum — $1,465.12
Copper — $6,995.00
Aluminum — $2.047.00
Nickel — $17,043.00
Zinc — $2,296.00
Cocoa — $3,268.00
Sugar — $22.21
Corn — $390.50
Soybean — $40.66

Consumption of aluminum may continue to rise in Asia next year as stimulus measures in China, the greatest consumer of the metal in the world, and rest of the region increased demand for the metal. China’s economy growth touched 8.9 percent in the third quarter, being the fastest in a year. Aluminum prices rose 32 percent in China this year. Analysts predict that demand will exceed supply by 380,000 tons next year and prices will average $2,700.

Cotton gained for the fifth straight session as high prices for cotton in Chinese markets boosted the attractiveness of cotton. Unwillingness of cotton holders to deliver supplies against December contracts also helped cotton prices. March futures for cotton delivery gained $0.0058 (0.8 percent) to $0.7506 per pound by 12:44 on ICE Futures U.S. in New York.