Commodity Blog

Posts Tagged ‘dollar’

Commodities rallied today as falling dollar increased demand for alternative assets. The US currency fell 0.4 percent versus the basket of six major currencies. Gains of stocks also made traders look more favorable on commodity market.

The S&P 500 Index rose 0.5 percent to 1,348.08 by 13:20, following the drop by 0.8 percent. The Dow Jones Industrial Average advanced 0.5 percent to 12,695.12 after it dropped 0.7 percent earlier today. The Thomson Reuters/Jefferies CRB Index of 19 raw materials also gained, while the MSCI World Index of equities.

June contract for crude oil delivery rose $0.76 to $98.97 per barrel on NYMEX. Futures for delivery of corn in July advanced $0.0325 (0.5 percent) to $6.805 per bushel by 13:15 on CBoT. Contract for soybean delivery in July climbed $0.11 (0.8 percent) to $13.4275 per bushel. June futures for delivery of gold gained $5.40 (0.4 percent) to $1,506.80 as of 13:41 on COMEX. July futures for silver delivery dropped $0.718 (2 percent) to $34.797 per ounce.

Gold and crude oil extended the rally today as the dollar continues to weaken. The US currency still feels the impact of the downward revision of the US credit rating outlook by Standard & Poor’s, even after the macroeconomic data showed that the US economic recovery goes forward with good pace. The Dollar Index fell 1 percent to 74.272, the lowest level since December 1, 2009.

Gold and other precious metals also gained as the rising prices across the world increases demand for a hedge against inflation. Crude oil was bolstered by the signs of the global recovery. It’s interesting to see how quickly demand for commodities returned after it was weakened by concerns about the European debt crisis. Anyway, commodities are in favor again, as was shown by the Thomson Reuters/Jefferies CRB Index of 19 commodities, which jumped as much as 1.7 percent.

June futures for gold delivery gained $3.80 (0.3 percent) to $1,498.90 by 13:37 on COMEX in New York, while contract for immediate delivery of the precious metal jumped 0.6 percent to the record of $1,506.03 per ounce in London. June futures for crude oil delivery rose $3.17 to $111.45 per barrel on NYMEX, posting the biggest gain since March 17.

Gold rose above $1500 and crude oil climbed today on forecast that the dollar will weaken. The US currency declined on speculation that the Federal Reserve will lag begin the European Central Bank in raising interest rates. The greenback also fell after Standard & Poor’s changed the US debt rating outlook from stable to negative yesterday.

Investors move to hard assets as appeal of the currency declines, increasing demand for gold and other precious metals. Weaker dollar also means higher prices for oil. Analysts predict that the report of the Energy Department tomorrow will show that the US inventories of crude increased for the seventh week.

June futures for gold delivery jumped $2.20 (0.1 percent) to $1,495.10 as of 13:38 on COMEX, following the previous advance by 0.5 percent to the record of $1,500.50 per ounce. May contract for crude oil delivery, which expired at the close of floor trading, rose $1.03 to $108.15 per barrel on NYMEX. The more actively traded June contract gained $0.59 (0.6 percent) to $108.28.

Gold continued to post new records and silver jumped above $40 level as the dollar weakened. The US currency weakened after the policy makers in Congress weren’t able to reach agreement about the federal budget. The greenback also declined as the rally of commodities decreased demand for the currency as a safe haven. The Thomson Reuters/Jefferies CRB Index of 19 commodities climbed to the highest level since September 2008. June futures for gold delivery gained $16.60 (1.1 percent) to $1,475.90 by 16:37 on COMEX. May futures for silver delivery rose $1.056 (2.7 percent) to $40.608. Gold advanced 3.2 percent and silver climbed 7.6 percent over this week.

Crude oil gained today, rising above $112, on the speculation that an end of the conflict in Libya wouldn’t be enough for supplies from the country to recover. Specialists say that it’s impossible for oil production to recover in the near future after the Libyan oilfield was bombarded and prices may surge above $130. The weaker dollar also helped oil to rise. May futures for coil delivery went up $2.49 to $112.79 per barrel on NYMEX, the highest price since September 22, 2008.

Crude oil slipped today as US gasoline inventories surged and the dollar strengthened. Gasoline stockpiles in the US, the biggest consumer of oil, advanced 5.6 million barrels last week. February delivery for crude oil dropped $0.48 cents (0.5 percent) to $88.90 per barrel on NYMEX.

Rubber also declined on a stronger dollar. Another reason for the decline was the profit-taking after prices surged to the record. June delivery for rubber slid 1.7 percent to 419.1 yen per kilogram ($5,102 per metric ton) on the Tokyo Commodity Exchange.

The commodity sell-off affected gold too, causing the spot price to decline 0.2 percent to $1,378.18 an ounce.

Gold gained today as volatile swings in currency markets drove investors to buy gold as a safe asset. The dollar dropped today versus the basket of six major currencies after three-week rally. China, the second largest buyer of the precious metal in the world, raised its interest rates for the second time this quarter. February futures for gold delivery advanced $1.80 (0.1 percent) to $1,382.20 by 10:11 on COMEX.

Copper futures rallied to a record today as stockpiles in China, the biggest consumer in the world, dwindled and on speculation that demand will outpace supply. According to the International Copper Study Group, global demand exceeded supply by 436,000 metric tons this year. Copper inventories monitored by the Shanghai Futures Exchange declined 5.8 percent last week, the biggest decrease in almost three months. March futures for copper delivery gained $0.009 (0.2 percent) to $4.2675 per pound as of 11:01 on COMEX.

Crude oil jumped to the highest level in two years after same-store sales in the US rose 4.2 percent last week. Oil also advanced as the Standard & Poor’s 500 Index went up. February delivery for crude oil rose $0.45 to $89.82 per barrel on NYMEX, the highest level since October 7th, 2008.

Concerns about tighter supply from Brazil boosted sugar prices. Adverse weather in Brazil helped the prices to jump 23 percent this year. March delivery for raw sugar gained $0.0006 (0.2 percent) to $0.3302 per pound by 13:46 on ICE.

Coffee futures also continued the rally to the 13-year record on speculation that adverse weather in Brazil and India may curb supplies. Commodities, including coffee, also gained on a weaker dollar. March delivery for Arabica coffee advanced $0.092 (4.1 percent) to $2.3385 per pound as of 14:00 ICE.

Crude oil fell today as a stronger dollar damped demand for commodities. The dollar strengthened after reports today showed that unemployment claims declined and housing starts advanced in the US. January delivery for crude oil went down $0.53 (0.6 percent) to $88.09 per barrel at 10:58 on NYMEX.

Natural gas dropped to the lowest level in a month as decline of US inventories was in line with analysts’ forecast. US stockpiles of gas fell 164 billion cubic feet to 3.561 trillion cubic feet last week, while forecasts promised a decline by 165 billion. January delivery for natural gas dropped $0.176 (4.2 percent) to $4.046 per million British thermal units by 11:31 on NYMEX.

Gold slipped today as speculator performed some profit taking after the precious metal rallied earlier. Gold gained 26 percent this year and reached the all-time record high of $1,432.50 an ounce on December 7th. February futures for gold delivery slid $18.10 (1.3 percent) to $1,368.10 as of 11:50 on COMEX.

Soybeans gained today on speculation that dry weather will harm crops in Argentina. Soybeans also declined as a stronger dollar diminished demand for commodities. March futures for soybean delivery went up $0.0175 (0.1 percent) to $13.0775 per bushel by 13:15 on CBoT.

Sugar rallied today for a fourth consecutive day on speculation that demand may outpace supply even though India is planning to resume export. Consumption of sugar may reach 165.3 million metric tons, almost 3 million tons more than production. The sweetener more than doubled from the level in May, which was the lowest in more than a year.

Cotton dropped today because of high prices and increasing plating in the US. Acreage may increase by at least 10 percent in the Southwest US. March delivery for cotton dropped $0.0235 (1.6 percent) to $1.4214 as of 14:46 on ICE.

Crude oil fluctuated after it jumped on report about US unemployment claims. Jobless claims declined from 438,000 to 421,000 last week. They were expected to drop only to 426,000. Speculation that tax cuts will bolster US economy also supported crude.

Gains of crude were trimmed by concerns about European sovereign-debt crisis and China’s attempts to cool its economy. Fitch said in yesterday’s report that Europe’s crisis “escalated beyond the point that it can be contained”. Gains of dollar also decreased appeal of commodities, including oil.

The January contract for crude rose $0.07 to $88.44 per barrel on NYMEX. January settlement for Brent crude oil gained $0.22 (0.2 percent) to $90.99 per barrel on ICE.