Commodity Blog

Archive for January 4th, 2010

Orange-juice futures went up after frosts hit Florida, the second greatest grower in the world after Brazil. Cold weather will last for a week, which should be not enough to noticeably damage crops. March futures for orange-juice delivery added $0.083 (6.4 percent) to $1.3735 per pound as of 10:33 on ICE.

Copper prices jumped to the record in 16 months after a strike at the second-biggest mine in the world and as manufacturing in the U.S., China and India increased in December. Last month manufacturing in the U.S. grew at fastest rate in three months. Demand for the metal in China reached a record in the first half of 2009. March futures for copper delivery climbed $0.0505 (1.5 percent) to $3.397 per pound by 11:22 on the New York Mercantile Exchange’s Comex unit.

White sugar price reached the highest level in at two decades in London on concern that flooding in Brazil may harm the crop. Analysts forecast that global sugar production will decline by 13.5 million tons in 2009–2010 season. March delivery for white sugar rose $16.10 (2.3 percent) to $726.30 per metric ton on the Liffe exchange.

Latest commodity prices (ICE, NYMEX, CME) as of 17:57 GMT:

Oil (Brent) — $79.96
Gold — $1,117.22
Silver — $17.41
Palladium — $416.50
Platinum — $1,482.83
Copper — $7,483.00
Aluminum — $2,270.00
Nickel — $18,850.00
Zinc — $2,579.50
Cocoa — $3,263.00
Sugar — $27.51
Corn — $417.75
Soybean — $40.84

Platinum is mainly used in manufacture of the autocatalysts. It is also used in petroleum, electrical, chemical and glass industries as well as investment asset. In 2009 demand for the metal fell as car demand declined because of global economy recession. What future can be expected for platinum in 2010?

As global economy rebounds so demand for platinum from industries, particularly car industry, grows. Jewelry industry showed astounding 80% growth of demand for the metal. Demand in China is steadily growing, expected to add 900,000 oz.

Will supply catch up demand in the next year? Opinions differ at this matter. Supply from South Africa fell 10.6% in 2009. Production in Russia declined 11% in the previous year. But in 2010 output from these countries can rise in response for growing prices. In other regions production slightly grew. Some analysts predict deficit as demand climbs, while other analysts forecast oversupply.

But even in case of oversupply platinum price may in fact grow due to investor involvement. Platinum ETFs increased 89% in 2009. Analysts say that the commodity will be traded in range $1,100-$1,900 in the next year, $1,350 being the most likely price.