Commodity Blog

Posts Tagged ‘euro’

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.

Soybeans advanced on speculation that supplies available for domestic processors may shrink as exports sales increased last week. Exports reached rose as much as 28 percent from a week earlier to 273,439 metric tons in the week ended March 18th, the highest since February 4th. Processors are planning to cut their production because of  shrinking supplies. May futures for soybean delivery advanced $0.02 (0.2 percent) to $9.62 per bushel as of 10:44 on CBoT.

Copper prices went up after the euro rebounded versus the dollar, boosting appeal of the metal as a hedge against inflation. The euro gained as much as 0.5 percent. Inventories of the LME-monitored copper dropped 0.3 percent, supporting the metal’s price. Delivery for copper in three months went up $47 (0.6 percent) to $7,418 per metric ton by 17:44 on the London Metal Exchange.

Copper prices slipped in New York as the stronger dollar curbed demand for the industrial metals as an inflation hedge. The euro dropped to a lowest in 10 months versus the U.S. currency. Some analysts think that copper may fall to $3.20 in the next two weeks. May futures for copper delivery slipped $0.0335 (1 percent) to $3.3455 per pound on the NYMEX in New York.

Cocoa futures in New York dropped after the dollar rose, cutting appeal of raw materials as an alternative assets. Cocoa was under pressure of the greenback from the beginning of 2010 as the stronger dollar reduced demand for commodities as a safe haven. Cocoa price also slid as harvest in Ivory Coast was better than predicted. May futures for cocoa delivery dropped $62 (2.1 percent) to $2,833 per metric ton on ICE Futures U.S.

Analysts forecast that gold priced in euro will continue to hit new highs. When price will reach its previous peak a cup and handle pattern may occur as investors start selling, causing some decline in price. After that price tend to rise greatly. Gold rose to 836.98 euro per ounce, an all-time record, on March 2nd.

Copper scrap discount to New York-listed futures declined by half in two months on deficit of used metal. Demand for the copper is rebounding on speculation that economic recovery will increase consumption. In the same time, scrap copper becoming scarcer because of harsh winter in the U.S. as snow hampers collection of scarp. May delivery for copper shrunk 0.3 percent to $3.4245 per pound by 11:17 on NYMEX.

Gold may slid after the dollar rebounded against the euro, cutting appeal of the metal as an alternative asset. The greenback rose on concern about Greece’s debts last month. Gold have tendency to move inversely to the U.S. currency.

Yet there are some factors that can support the metal’s price. Commodities’ prices may go up as U.S. economy advanced at a 5.9 percent annual rate in the fourth quarter, the greatest pace in six years. Chile earthquake boosted the base metals prices, possibly pushing other commodities up. Africa’s biggest gold mines may halt due strikes, decreasing supply of the precious metal.

April futures for gold delivery fell $1.20 (0.1 percent) to $1,117.70 per ounce by 11:28 on the Comex division of the New York Mercantile Exchange. Immediate delivery for gold was at $1,117.30 in London.