Commodity Blog

Posts Tagged ‘euro’

Copper gained on the speculation that supply will decline and as weaker dollar boosted prices of commodities. Contract for delivery of copper in three months went up 0.2 percent to $9,157.50 on LME

Gold metals fell as the euro gained, reducing demand for safer assets, after the European Central Bank supported plan for rollover of the Greek bonds. August futures for delivery of gold slipped $3.20 (0.2 percent) to $1,544 on COMEX. July silver futures advanced $0.264 (0.7 percent) to $37.046 per ounce.

Oil jumped on the speculation that increasing production quotas in the Organization of Petroleum Exporting Countries will reduce spare capacity. The US Energy Department revised its forecast for the global usage of oil this year to 88.43 million barrels per day from 88.08 million in May. July delivery for crude oil traded at $99.09 per barrel on NYMEX. July futures for Brent crude delivery rose $2.30 (2 percent) to $116.78 per barrel on ICE.

Futures on wheat gained for the fist time in three sessions on forecast that the renewed Russia’s exports won’t be enough to satisfy demand. Supply of the commodity is likely to decline as adverse weather in the US and Europe may hurt crops. July contract for delivery of wheat went up $0.105 (1.4 percent) $7.6975 per bushel as of 13:15 on CBoT.

Gold decline as the rebound of the euro reduced demand for the precious metal as a safe haven. The European currency gained 1.3 percent after Germany’s Chancellor Angela Merkel said that her country is committed to the stability of the euro. Futures for delivery of gold in August slipped $10.50 (0.7 percent) to $1,532.70 by 13:38 on COMEX.

Crude oil advanced after the dollar fell as Moody’s Investor Service put the US credit rating on review for downgrade. The rating agency will cut the debt rating of the North American country if there would be no progress in increasing the debt limit. July futures for crude oil delivery traded at $100.40 per barrel on NYMEX following the fall by 1.8 percent to $98.46.

Copper futures reached the highest level in a week on speculation that global consumption may exceed production. Global inventories of copper may decline to historical lows in next two years because of decreasing output. Demand may outpace supplies by 1 million metric tons through 2011 and 2012. March futures for copper delivery rose $0.052 (1.4 percent) to $3.8195 as of 12:17 on COMEX.

Gold jumped to the highest level in two weeks as debt problems in Europe are worsening. Ireland’s bailout wasn’t able to restore confidence in the economy of the Eurozone and investors’ concerns just shifted to Portugal and Spain. The dollar surged to the highest level in 10 days versus the euro. February futures for gold delivery gained $18.60 (1.4 percent) to $1,386.10 per ounce by 13:33 on COMEX.

Copper fell from highest level in five months today as the slower global economic growth suggests that demand for the metal may decrease. Reports about new homes sales and unemployment claims in the US last week signaled about weakness of the US economy. Analysts say that it’s not surprising for the price to encounter resistance at previous high levels, but that resistance may be broken in case of some really good news, which would push the prices upward. December futures for copper delivery subtracted $0.021 (0.6 percent) to $3.597 per pound by 13:24 on COMEX.

Crude oil dropped today after the dollar strengthened against the euro and forecasts suggest that gasoline inventories in the US, the biggest oil consumer in the world, would grow, causing demand for crude to decline. The euro fell versus the dollar on concerns about health of the banking systems in such countries as Ireland and Portugal. Experts estimated that US gasoline stockpiles advanced 750,000 barrels last week. November delivery for crude oil (Brent) dropped $0.3 (0.4 percent) to $78.57 per barrel on ICE.

Gold futures rallied today to the highest level in a week as the rising stocks and commodities signaled about expanding global economic growth, causing speculations that demand for raw materials will rise. The MSCI World Index of stocks climbed to the highest level since May 13 and Reuters/Jefferies CRB Index of 19 commodities headed for the biggest rally in almost a year. Crude oil jumped above $81 per barrel, while copper surged to the highest level in three months. An outlook for a seasonal increase of demand in such countries as India and Turkey also supported gold prices.

Euro’s rally prompted investors to sell the precious metal and buy the 16-nation European currency, limiting gains of gold. As McGhee of Integrated Brokerage Services said:

On the rallies, you’ve got some investors moving out of gold and back into euros.

December futures for gold delivery advanced $1.50 (0.1 percent) to $1,185.40 by 13:35 on COMEX, following the surge to $1,193.90. Speculators raised net-long position by 5.9 percent on COMEX in the week ended July 27th.

Hog futures slipped on anticipation of U.S. pork exports’ decline, caused by the dollar’s rally. The dollar reached almost the highest level in four years, making European pork cheaper, which may encourage importers to turn from U.S. pork in favor of European supplies. July futures for hog settlement slipped $0.002 (0.2 percent) to $0.8255 per pound as of 10:00 on CME.

Soybeans gained today amid concerns that excessive precipitation will delay planting and diminish the yield. The amount of rain, received by some fields from Kansas to Michigan in the previous month, was more than twice above the normal quantity. The planting in the U.S. was completed by 74 percent on May 30th, compared with the average 75 percent in the past five years. July futures for soybean delivery gained $0.015 (0.2 percent) to $9.335 per bushel by 10:35 on the Chicago Board of Trade.

Copper futures rose on prospect of strong demand from China. Analysts say that global inventories are dwindling while demand from China remains stable, which may lead to a deficit of the metal. Inventories monitored by the Shanghai Futures Exchange decreased for a third straight week in spite of the fact that China imported 309,772 metric tons the previous month. July futures for copper delivery advanced $0.1165 (4 percent) to $3.061 a pound as of May 21 on COMEX.

Gold futures jumped after the euro’s decline boosted demand for the precious metal as a safe haven. The Bank of Spain took over the savings bank CajaSur after it was harmed by property-loan defaults. This caused doubts about resilience of the European banking system, which led to the euro’s weakness. June futures for gold delivery climbed $15.10 to $1,191.20 per ounce by 11:34 on COMEX in New York.

Wheat gained on the outlook that the weak dollar will increase the appeal of the grains as an inflation hedge and will bolster demand for the supplies from the U.S. The weak dollar can increase the purchasing ability of the crop importers from the U.S. July futures for wheat delivery gained $0.05 (1 percent) to $4.8425 per bushel at 9:46 on CBoT.

Crude oil fluctuated around $85 per barrel as the speculation about the dollar weakness spurs demand for the commodity as an alternative asset, driving the prices up, yet the concern for the declining demand forces the oil prices downward. The rescue package, provided to Greece by the European Union, sparked expectations for the dollar to fall versus the euro. In the same time, the global inventories are stockpiling, the U.S. inventories are above average and there is no sign of supplies decline. May delivery for crude oil for dropped $0.04 to $84.88 per barrel by 12:39 on the New York Mercantile Exchange.

Copper prices dropped from the highest level in 20 months on speculation that the rally was excessive. Previously prices have risen on outlook for the economic recovery in the U.S., but the National Bureau of Economic Research insisted that it is too early to talk about the end of the U.S. economic recession. May futures for copper delivery fell $0.024 (0.7 percent) to $3.566 per pound as of 12:48 on NYMEX.

Wheat dropped to a lowest in five months after a report that farmers in the U.S. may plant more than predicted. Growers may use as much as 53.8 million acres for planting wheat seed, while the average estimate was 53.3 million acres. Possibility of oversupply drags prices down. May futures for wheat delivery dropped $0.1425 (3 percent) to $4.5775 per bushel by 10:28 on the Chicago Board of Trade.

Gold gained after the dollar slid today, boosting the demand for an alternative assets. The U.S. currency fell 0.7 percent versus a basket of major currencies as recovery of the U.S. economy slowed and jobless rate worsened. Confidence in euro strength also waned on concern about Greece budget deficit, causing investors to seek alternative to common currencies. June futures for gold delivery gained $9.10 (0.8 percent) to $1,114.80 per ounce as of 11:53 on NYMEX in New York.

Crude oil fluctuated as the dollar fell, bolstering the demand for commodities as an alternative investment, and after a government report that the U.S. economy expanded less than predicted in the fourth quarter of 2009. The U.S. currency fell as much as 1.1 percent versus the euro. OPEC is planning to raise shipments by 1.7 percent in the month ending April 10th, signaling that demand in Asia stays high. May delivery for crude oil fell $0.14 to $80.39 per barrel as of 10:26 on NYMEX.

Hog futures slid on outlook for lower reductions of the U.S. breeding herd. U.S. hog farmers held back about 5.855 million sows for breeding by March 1st, that’s 2.3 percent down from a previous year. Reductions declined as farmers expect that profits may rebound after losses on slumping pork demand and high corn prices. June futures for hog settlement slid $0.00175 (0.2 percent) to $0.7945 per pound by 11:44 on the Chicago Mercantile Exchange.