Commodity Blog

Archive for August, 2010

Latest commodity prices (ICE, NYMEX, CME) as of 20:08 GMT:

Oil (Brent) — $74.44
Gold — $1,247.65
Silver — $19.30
Palladium — $499.50
Platinum — $1,519.19
Copper — $7,405.00
Aluminum — $2,045.00
Nickel — $20,715.00
Zinc — $2,074.80
Cocoa — $2,698.00
Sugar — $19.76
Corn — $426.50
Soybean — $1005.25

Wheat prices hit the highest level in a week today on an outlook for reduced output from Argentina and Russia because of drought. Global inventories may decline 9.9 percent to 174.8 million metric tons. December futures for wheat delivery gained $0.215 (3.1 percent) to $7.165 per bushel as of 11:21 on CBoT. Concerns about adverse weather boosted wheat futures, causing them to rise 45 percent since the end of June.

Gold fluctuated today, but expected to resume its rally as faltering economic recovery and declining US equities increased demand for the metal as a safe haven. US stocks dropped after a government report showed that personal income rose less than predicted. The gross domestic product rose 1.6 percent in the second quarter of 2010, less than estimated in the previous month. December futures for gold delivery slid $0.5 to $1,237.40 per ounce by 11:25 on COMEX. Gold prices advanced 13 percent this year, touching the record level of $1,266.50 per ounce in June.

Latest commodity prices (ICE, NYMEX, CME) as of 16:30 GMT:

Oil (Brent) — $76.44
Gold — $1,236.25
Silver — $19.09
Palladium — $497.00
Platinum — $1,527.24
Cocoa — $2,672.00
Sugar — $19.59
Corn — $426.75
Soybean — $1020.75

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 August 28th 2010:

Latest commodity prices (ICE, NYMEX, CME) as of 14:08 GMT:

Oil (Brent) — $74.52
Gold — $1,233.16
Silver — $18.93
Palladium — $496.00
Platinum — $1,524.52
Copper — $7,306.00
Aluminum — $2,014.00
Nickel — $20,555.00
Zinc — $2,040.00
Cocoa — $2,661.00
Sugar — $19.43
Corn — $421.00
Soybean — $39.41

Despite falling down for the first two days of the week, the crude oil is managing to show a positive weekly advancement as of today, while the current daily gain isn’t something exceptional. As with the Forex pair of EUR/USD, GDP data helps.

Oil is a perfect bet when the market believes in the economic growth or recovery. Today we’ve got another proof of that, as the oil rose despite having a moderate weakness; the riskier traders bought it before the GDP release in the United States (1.6 percent growth in Q2 2010). During the first two days of the week, oil lost about 2.8 percent of its value but, starting from Wednesday, it’s showing a moderately strong rally.

This year, the level of $70/barrel looks to be a major bottom limit for this commodity — it was proven for the 4th time this week. Analysts hope that in the near future we’ll hear some positive growth-assuring rhetoric from the world’s officials and that it will be able to support the oil prices further. At the same time, further increases on the oil inventories (and this week we’ve witnessed a report for more than 4.1 million barrel gain in US) can put the prices at risk.

Crude oil (Brent) is now trading near $75.29 per barrel as of 13:21 GMT, going up from $74.85 open price. It traded at as low as $71.75 on Wednesday.

The silver rose to a new maximum level in almost two months today as the investors were attracted into buying this commodity due to it relatively cheap ratio compared to gold. The gold/silver ratio declines significantly.

Although precious metals aren’t traded in pairs, silver and other such commodities is often compared with each other to find the good investment opportunities, taking ratios into account. Silver benefits as another safe haven asset after the gold and also as an industrial metal, so it’s usually valued at a same ratio compared with gold and when it offers some opportunity investors go in.

Analysts believe that the current level of silver is “too cheap”. Some of them expect an almost forgotten level of $20 soon, which would be the highest price for this metal since early 2008. While gold is trading quite close to its all-time maximums, for silver that’s still not the case.

Spot silver prices rose from $18.88 to $19.09 as of 15:54 GMT today. It’s value ratio with gold is about 64.7, which is still quite high.

Latest commodity prices (ICE, NYMEX, CME) as of 15:36 GMT:

Oil (Brent) — $75.10
Gold — $1,238.74
Silver — $19.09
Palladium — $503.50
Platinum — $1,528.52
Copper — $7,301.00
Aluminum — $2,035.00
Nickel — $20,598.00
Zinc — $2,045.00
Cocoa — $2,711.00
Sugar — $19.81
Corn — $412.50
Soybean — $39.48

Gold reached a new high level since July 1st today as the investors continued to bet on the weaker global growth and bought save haven assets, including the bonds, some currencies and all the precious metals.

Gold takes a prominent position among the commodities — unlike crude oil (which is reacting quite badly to the latest recession signals), the gold futures are the major beneficiary of the ongoing market uncertainty. It’s rising for the second day in a row today, with the beginning of its latest uptrend wave being on July 28. Gold is a nice alternative to the bonds with more volatility and margin trading.

The commodity is going up along with the silver, palladium and platinum. We’ll continue to witness a strong positive correlation between the gold and the US treasuries in the future. Tom Pawlicki of MF Global Ltd. said about it:

Gold can continue to compete with Treasuries for investment as opportunity costs of holding gold are low due to falling interest rates.

Spot gold is now trading at $1,238.74 as of 17:29 GMT after closing at $1,229.92 yesterday. The historical maximum for the gold is located at $1,264.78.

Latest commodity prices (ICE, NYMEX, CME) as of 16:49 GMT:

Oil (Brent) — $72.52
Gold — $1,238.86
Silver — $18.80
Palladium — $488.50
Platinum — $1,513.80
Copper — $7,094.00
Aluminum — $2,001.00
Nickel — $20,100.00
Zinc — $1,967.00
Cocoa — $2,718.00
Sugar — $20.28
Corn — $403.25
Soybean — $39.22