Commodity Blog

Crude oil and gold, as well as other commodities, jumped after the Federal Reserve maintained interest rates near zero and pledged to keep borrowing costs record low at least till late 2014. Such move was considered a ”light” version of quantitative easing. It weakened the dollar and boosted commodities priced in the US currency. March for delivery of crude oil advanced $0.66 to $100.06 per barrel on NYMEX. Brent went higher from $110.45 to $110.74 per barrel on ICE today as of 6:41 GMT. Gold was up from $1,666.50 to $1,711.00 yesterday and traded at $1,710.80 today on COMEX.

Wheat was also higher on dwindling Russian stocks. Inventories of some Russian regions declined by more than 50 percent, while other regions shipped almost all of their supplies as exports picked up. Wheat climbed from $6.4075 to $6.4650 per bushel on CBoT today.

Latest commodity prices (ICE, NYMEX, CME) as of 23:15 GMT:

Oil (Brent) — $110.55
Gold — $1,710.30
Silver — $33.19
Palladium — $693.10
Platinum — $1,572.20
Copper — $383.60
Aluminum — $111.10
Cocoa — $2,439.00
Sugar — $24.51
Corn — $635.75
Soybean — $1,212.75

Oil fell yesterday on concerns about the credit woes of European countries that may derail global economic growth. Today prices rebounded somewhat as tensions about Iran still provide support for the commodity.

Discussion among Greece and private bondholders about a debt haircut ended in a stalemate. The country offered very low interest rates on its bonds that creditors didn’t wish to accept. The bad outcome of the talks spoiled market sentiment that previously was lifted by speculation that European lawmakers devised plans for battling the debt crisis.

Iran still may disrupt supply of crude, but analysts think that such move is already priced in. Analysts estimated that US inventories of crude oil grew 0.9 million barrels last after falling 3.4 million barrels in the week before. A report from the Energy Information Administration about stockpiles will be released later today.

March futures for delivery of crude oil rose $0.24 to $99.19 per barrel in electronic trading on NYMEX after falling $0.63 to $98.95 yesterday. Brent rose from $110.24 to $110.52 per barrel as of 4:11 GMT today on ICE, following the drop from $110.84 to $110.33 yesterday.

Latest commodity prices (ICE, NYMEX, CME) as of 18:15 GMT:

Oil (Brent) — $109.92
Gold — $1,666.70
Silver — $32.17
Palladium — $682.25
Platinum — $1,550.60
Copper — $380.35
Aluminum — $110.75
Cocoa — $2,415.00
Sugar — $24.85
Corn — $633.25
Soybean — $1,222.75

Coffee futures retreated on outlook for growing global supply. Concerns about the situation in Europe also weighed down on commodities.

The International Coffee Organization increased its forecast for the world coffee production by 3.8 million bags from December to 132.4 million bags in the season that started in October. Analysts say that short sellers drive the market now, while buyers perhaps expect prices to fall further.

Greece is talking with private creditors in an attempt to convince them to write off part of the country’s debt. Initially, the talks improved mood of traders, boosting commodities, but the optimism started to wear off as market participants began to doubt success of the discussions.

Coffee price went down from $2.2390 to $2.2000 per pound yesterday on ICE after reaching earlier $2.1785 — the lowest level since January 9.

Latest commodity prices (ICE, NYMEX, CME) as of 18:45 GMT:

Oil (Brent) — $111.20
Gold — $1,676.80
Silver — $32.66
Palladium — $687.70
Platinum — $1,547.00
Copper — $379.45
Aluminum — $110.60
Cocoa — $2,269.00
Sugar — $25.04
Corn — $618.75
Soybean — $1,215.00

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 January 21st, 2012:

Cattle prices touched a record for the fifth time this month as cattle suppliers are unable to keep up with rising demand for US beef. Farmer’s haven’t been able to provide enough supply to meatpackers as drought made them to cut herds earlier this year. Prices for feeder-cattle also rose. April futures for delivery of cattle gained 0.5 percent to $1.285 per pound by 9:27 on CME and reached the record high of $1.29325 earlier. March contract for feeder-cattle deliver went up 0.5 percent to $1.547 per, while earlier the settlement reached the all-time high of $1.55275.

Orange-juice futures also reached a record today. Citrus crops in Texas were hit by greening disease that has already caused an extensive damage to plants in Florida. At the same time, the US Food and Drug Administration halted juice imports from Brazil to check for banned fungicide. Futures for delivery of orange juice in March rose by the exchange limit of $0.1 (5 percent) to the record of $2.1065 per pound as of 11:00 on ICE.

Latest commodity prices (ICE, NYMEX, CME) as of 18:45 GMT:

Oil (Brent) — $110.07
Gold — $1,666.10
Silver — $30.52
Palladium — $677.00
Platinum — $1,530.30
Copper — $373.40
Aluminum — $110.10
Cocoa — $2,273.00
Sugar — $24.88
Corn — $606.75
Soybean — $1,187.50

Crude oil futures rose today as the growing economy of the United States reduced nation’s inventories and on concerns that Iran may disrupt supply by blocking the Strait of Hormuz.

US commercial crude oil inventories declined 3.4 million barrels last week. An increase by 2.9 million was predicted by specialists. Currently the stockpiles stand at 331.2 million barrels.

Mohammad Khazaee, Ambassador of Iran to the United Nations, explained:

There is no decision to block and close the Strait of Hormuz unless Iran is threatened seriously and somebody wants to tighten the noose. All the options are, or would be, on the table.

February futures for delivery of crude oil rallied by $1.42 to $102.01 per barrel in electronic trading on NYMEX before trading at $101.74 as of 13:03. Brent went from $111.53 to $112.01 per barrel today as of 5:24 GMT on ICE.