Commodity Blog

Posts Tagged ‘Liffe’

White sugar dropped to the 10-month low in London on expectations of high supply from Brazil and India. Brazil’s output surged and supply may exceed demand in India, turning the biggest buyer into exporter. Increasing supplies together with continuous troubles in Europe cause experts to be bearish in their outlook for sugar. August delivery for white sugar dropped $11 (2.5 percent) to $431.50 per metric ton on Liffe exchange as of 10:39.

Cocoa futures tumbled today as commodities followed decline of global equities. The global economic recovery may be slowed, hurting commodity prices, by the spreading contagion of Greece’s fiscal crisis. The Standard & Poor’s 500 Index may are heading toward the largest weekly decline since March 2009. July futures for cocoa delivery sank $178 (5.6 percent) to $3,025 per metric ton by 11:55 on ICE Futures U.S. in New York.

Gold gained today as the concern that the rescue package, offered to Greece, won’t be enough to deal with the nation’s debt increased the appeal of the precious metal as a safe haven. Worries about a budget deficit are spreading to other European countries and also to U.K., driving investors to look for alternative assets and a safe haven. June futures for gold delivery gained $3 (0.3 percent) to $1,142.20 per ounce by 11:20 on NYMEX.

Sugar dropped to the weekly low in London on speculation that India may cut imports of the sweetener after its own sugar production increased. The India’s production may rise to 23 million tons in the year starting October 1st as there should be enough rains for the expected harvest. August futures for refined sugar delivery dropped $3.30 (0.7 percent) to $486.40 per metric ton at 15:18 on Liffe exchange.

Copper declined on speculation that demand for the metal may fall after China toughened rules for lending and property markets. Measures taken by China’s government should cool the nation’s economy, possibly resulting in falling demand and sinking price for commodities. Delivery for copper in three months declined $15 (0.2 percent) to $7,775 per metric ton as of 17:09 on the London Metal Exchange.

White sugar gained in London on the prospect for the increased imports by China as the drought may decrease the sugar stockpiles. The Chinese importers may boost their purchases after the sugar production fell because of the drought in the Yunnan province. The sugar output, including beet and cane sugar, may decline to 12 million metric tons this crushing year, down from 12.5 million tons in the previous year.

The refining of the raw sugar imports in Russia dropped 22 percent, compared to the same period in the previous year, from the start of this year through April 1st. Russia may begin importing raw sugar in exchange for the grain shipments.

August delivery for white sugar rose $7.10 (1.6 percent) to $462.70 per ton on the Liffe exchange in London. May delivery for raw sugar retreated 0.6 percent to $0.1607 per pound by 12:37 on ICE. Analysts say that, while the support for the sugar price’s increase is not strong, the fundamentals still can push sugar further up.

Analysts say that sugar may continue to fall as the technicals don’t support its price. It will be difficult for sugar to rebound unless it will rise above $500 per metric ton. Some traders refrain from purchasing sugar on the expectation of lower prices. May delivery for white sugar fell $6 (1.2 percent) to $483 per ton on the Liffe exchange.

Soybeans rose to the highest level this week on the speculation that China, the largest oilseed importer, will help its currency to rise versus the dollar, decreasing the cost of buying U.S. supplies. The Chinese government is going to let the yuan to appreciate, hoping to keep the rate of the inflation in check. Chinese oilseed processors have purchased about 15 cargoes of soybeans in the previous week after the profit margins rose. May futures for soybean delivery gained $0.0424 (0.4 percent) to $9.4875 per bushel by 12:00 on CBoT.

White sugar gained in London on signs that a global production deficit may persist, encouraging importers to increase inventories. Production of sugar cane in Brazil and India, the largest growers in the world, was hampered by adverse weather. Analysts forecast that global demand will exceed worldwide output by 9.4 million metric tons in the 2009–10 season. May delivery for white sugar rose $7.60 (1.1 percent) to $714.50 per metric ton on the Liffe exchange.

Wheat, soybeans and corn dropped in Chicago after the dollar gained, making purchases of U.S. crops unprofitable for traders, who are using other currencies. May delivery for wheat lost 1.3 percent to $4.9325 per bushel on CBoT by 12:34. Argentina, the third biggest soybean exporter in the world, may produce more soybeans than previously predicted record 52 million tons with the aid of rains. May delivery for soybeans declined 0.7 percent to $9.575 per bushel. Corn planting is expected to increase from 86.5 million acres last year to 89 million this year. May delivery for corn fell 0.7 percent to $3.6625 per bushel.

Corn and wheat slid today on speculation that demand is shifting from U.S. grain. Lower quality of U.S. corn crop may result in business shifting to supplies from competing nations. May futures for corn delivery fell $0.0225 (0.6 percent) to $3.695 per bushel by 10:26 on the Chicago Board of Trade.

Cotton price reached the highest level since July 2008 on signs that the dollar will decline, increasing the demand for commodities as a hedge against inflation. The dollar dropped 0.2 percent versus a basket of six major currencies before rebounding. May futures for cotton delivery advanced $0.0037 (0.5 percent) to $0.7648 per pound as of 11:28 on ICE.

White sugar declined in London today as technicals signal that further drops may lie ahead. Prices also slid as the dollar rebounded, curbing appeal of commodities priced in U.S. currency. May delivery for white sugar slipped $10 (1.4 percent) to $704 per metric ton on the Liffe exchange.

Copper rose in London on outlook for increasing demand in Japan, the fourth biggest buyer of the metal in the world. Japan’s gross domestic product grew 4.6 percent in the fourth quarter. Imports of the metal in China declined as much as 546,000 metric tons. Yet analysts say that this decline can be more than offset by rising global demand. Three-month delivery for copper rose $70 (1 percent) to $6,880 per ton by 16:52 on the London Metal Exchange.

Wheat futures fell in Paris on speculation that rising global stockpiles will decrease prices. The U.S. Department of Agriculture reported that global wheat stockpiles will increase from 164 million metric tons a year earlier to 195.9 million tons by the end of May as supply exceeds demand for a second year. Prices may yet go up with farmers’ reluctance to sell at current prices and good European Union exports. March delivery for milling wheat fell 0.4 percent to 125.25 euros ($170.35) per metric ton today on NYSE Liffe.

Cocoa rose to a highest level in 21 years in London on speculation that demand will be boosted by a rebounding global economic. Restocking is taking place as consumer confidence returns and business conditions improve. Cocoa consumption jumped 0.6 percent in Europe in the fourth quarter. March delivery for cocoa rose 1 percent to $3,770 per metric ton on Liffe today.

Copper prices tumbled to the four-week low as the rising dollar cut buying of commodities as an inflation hedge and a decline in equity markets curbed demand outlook. Yet some analysts think that the outlook for copper over the longer term is quite positive as demand rises in Asia, including China. March futures for copper delivery dropped $0.06 (1.8 percent) to $3.295 per pound on NYMEX.

Soybeans rose on expectations that demand from China will rebound after prices from the U.S. fell 9.4 percent this month. China’s demand for soybeans grown in the U.S. to produce cooking oil and livestock feed rose as drought harmed crops in South America last year. March futures for soybean delivery gained $0.04 (0.4 percent) to $9.54 per bushel on CBoT.

White sugar price reached to the highest level since 1989 in London as concern about supply deficit forces India and other importers to increase stockpiles. India, the biggest consumer in the world, are going to import at least 7 million tons of sugar this season, third of that number being white, or refined, sugar. Worldwide demand for sugar will exceed supply by 13.5 million metric tons in the 2009–10 season. March delivery for white sugar gained $11.20 (1.5 percent) to $743.90 per ton on the Liffe exchange.

Analysts predict that gold may decline as a stronger dollar eroded appeal of the precious metal as an inflation hedge. The U.S. currency rose 0.8 percent versus the euro today. If the greenback rally continues, gold is going to go down. Immediate delivery for gold was little changed, remaining at $1,133.50 per ounce by 11:12 in New York.

Orange-juice futures went up after frosts hit Florida, the second greatest grower in the world after Brazil. Cold weather will last for a week, which should be not enough to noticeably damage crops. March futures for orange-juice delivery added $0.083 (6.4 percent) to $1.3735 per pound as of 10:33 on ICE.

Copper prices jumped to the record in 16 months after a strike at the second-biggest mine in the world and as manufacturing in the U.S., China and India increased in December. Last month manufacturing in the U.S. grew at fastest rate in three months. Demand for the metal in China reached a record in the first half of 2009. March futures for copper delivery climbed $0.0505 (1.5 percent) to $3.397 per pound by 11:22 on the New York Mercantile Exchange’s Comex unit.

White sugar price reached the highest level in at two decades in London on concern that flooding in Brazil may harm the crop. Analysts forecast that global sugar production will decline by 13.5 million tons in 2009–2010 season. March delivery for white sugar rose $16.10 (2.3 percent) to $726.30 per metric ton on the Liffe exchange.