Commodity Blog

Posts Tagged ‘metal prices’

Gold prices dropped as rising dollar lowered demand for the precious metal as a hedge against inflation. Restoring U.S. economy returned confidence in the U.S. currency, driving the greenback up. Some investors also were selling the metal to make profit from high gold prices. February futures for gold delivery slid $9.80 (0.9 percent) to $1,098.10 per ounce on the Comex division of NYMEX.

Crude oil little changed, remaining at a five-week high, after heating oil jumped on forecast for cold weather in the U.S. and the dollar rebounded versus the euro. January delivery for heating oil increased $0.0293 (1.4 percent) to $2.1028 per barrel on NYMEX. U.S. oil stockpiles dropped 1.85 million barrels in the week ended December 25th from 327.5 million the previous week. February delivery for crude oil gained $0.1 to $78.87 per barrel on NYMEX.

The global aluminum surplus will be cut by 54 percent in 2010 compared to this year as demand increase in China, the greatest buyer in the world, with economical recover. Chinese demand also increase with help of government’s economic measures. World demand for the metal will climb 7.6 percent to 37.6 million metric tons in the next year.

Chinese aluminum production will rise 16 percent to 15.5 million tons in 2010 as smelters encouraged restarting their work by increasing metal prices. Despite this analysts don’t expect any significant export from China next year. Global supply will rise 3.5 percent to 38.8 million tons in 2010.

Analysts predict that delivery for aluminum in three months will reach $1,900 per metric ton on the London Metal Exchange in January to March. The metal traded $2,127 per ton as of 17:50 in Tokyo.

Copper tumbled on speculation that the global economic recovery may become slower. Imports of the metal in China, the largest consumer of copper in the world, slid in October for the third time in four months. March delivery for copper slid $0.0065 to $3.252 per pound by 11:39 on the New York Mercantile Exchange’s Comex unit.

Soybeans gained for the first time in three sessions on speculation that global demand for the U.S. oilseed and animal feed increased. Sales grew 58 percent to 27.8 million metric tons since September 1st. January futures for soybean delivery gained $0.0675 (0.7 percent) to $10.4075 per bushel as of 11:52 on CBT.

Hog futures climbed to the weekly high on speculation that a rising prices for U.S. wholesale-pork signaled increasing export demand. Exports are rising as the dollar falls and as countries lift bans on U.S. pork that were put after the swine flu outbreak. February futures for hog settlement climbed $0.003 (0.5 percent) to $0.6695 per pound at 12:21 on CME.

Copper slid in London as growing inventories and the rebounding dollar pushed down demand for the metal. Stockpiles monitored by the London Metal Exchange increased 0.1 percent to 432,075 metric tons, the highest level since April 23rd. March delivery for copper slid 2.3 percent to $3.1245 per pound on NYMEX.

Gold imports by India, the greatest buyer in the world, declined for the seventh straight month as record prices decreased demand for the precious metal. Gold prices touched a record for a third time this week as falling dollar boosted attractiveness of the metal as an inflation hedge. Immediate delivery for gold for dropped 0.7 percent to $1,183.15 per ounce.

Copper slid in New York and London after the dollar gained. Prices also fell as stockpiles of metal in LME-monitored warehouses increased 0.4 percent to 373,800 tons. December delivery for copper slid $0.0325 (1.1 percent) to $2.9125 per pound by 8:27 on the New York Mercantile Exchange’s Comex unit.

Coffee futures declined on speculation that a stronger dollar will decrease demand for commodities. Coffee also fell on concern that yesterdays 5.1 percent surge was overdone. December futures for Arabica-coffee delivery declined $0.025 (1.8 percent) to $1.3985 per pound as of 9:32 on ICE Futures U.S. in New York.

Wheat futures may be opened lower as the rising dollar decrease demand for the U.S. exports and for commodities as an alternative investment. Wheat on CBoT is expected to open about 6 cents lower.

Survey showed that gold may go down because a rising dollar eroding appeal of the precious metal as a hedge against inflation. The U.S. Dollar Index has gained 1.3 percent from the lowest in the 14 months on October 21st. Gold have trend to move inversely to the U.S. currency. December delivery for gold went down 0.8 percent to $1,047.50 per ounce at 12:55 yesterday in New York.

Copper may fall in London on speculation the dollar will rebound, eroding demand and making metals priced in the U.S. currency more expensive for holders of other monies. Analysts said that the metal would fall next week. Three-month delivery for copper remained at $6,651 per metric ton as of 17:00 yesterday on the London Metal Exchange.

Copper, the metal used in pipes and wires, declined on speculation that growing stockpiles will lower demand. Supplies will exceed consumption because demand is not very high this year. Inventories monitored by the London Metal Exchange reached the highest level in five months.

Copper prices also fell because of declining imports in China. Prices for the metal doubled in the first half of this year with help of imports by China. Yet shipments slumped in July and August before rebounding in September. Demand may fall further as manufacturers end rebuilding of inventories.

December delivery for copper futures fell $0.031 (1.1 percent) to $2.828 per pound at 11:13 on NYMEX. Delivery for copper in three months declined $83.50 (1.3 percent) to $6,205.50 per metric ton on LME.

Copper prices advanced as demand for the metal continue to rise in China, the biggest metals consumer in the world. Chinese economic growth may surpass an 8 percent annual rate in the third quarter. Metals’ imports in China climbed to a record in the first half of this year.

The prices are also boosted by a weaker dollar. The U.S. Dollar Index dropped as much as 0.5 percent. Traders tend to buy metals as an alternative investment as the dollar weakens.

The industrial metals, including copper, may continue to rise in the first quarter of 2010 as funds buy more metals for the annual re-weighting of  the commodity indexes. Greater weighting of industrial metals should be very favorable.

December futures for copper delivery rose $0.016 (0.6 percent) to $2.854 per pound by 11:39 on the New York Mercantile Exchange’s Comex unit. Delivery for copper in three months advanced $27.75 (0.4 percent) to $6,262.75 per metric ton on LME.

Global commodity prices have not yet hit bottom, but they are not falling as fast as they have been, Bank of Nova Scotia said Thursday.
“The pace of decline is slowing and the forced, indiscriminate asset selling by funds — triggered by investor redemptions and tight credit — appears to be subsiding,” Patricia Mohr, vice-president of economics and commodity market specialist at the bank, said in a monthly report.
“Many prices are approaching average world cash costs, triggering substantial production cuts, new project deferral and tighter supplies.”
The report showed that Scotiabank’s commodity price index fell in December for the fifth month in a row, this time dropping to 164.5 from 174.1 in November, a decline of 5.5 per cent.
This means the index, whose baseline value is 100 in 1997, has now plunged by 39 per cent from its cyclical peak.
Ms. Mohr said in the report that the shift from boom to bust in many commodities have been the most rapid in the index’s history. It has been magnified by the funds’ rush for the exits along with ongoing problems in the U.S. and British financial services industries and ”rapidly worsening economic conditions.”
In particular, economic growth in China, which had been a key driver of soaring commodity prices, slowed to 6.8 per cent in the last quarter of 2008, about half the 2007 rate of 13 per cent, the report noted.

The U.S. Mint plans to use less copper and nickel, but more zinc, as it ramps up penny production and cuts back on nickels, dimes, quarters and dollar coins, an agency spokeswoman said on Friday.
The Mint’s zinc needs will increase by approximately 2.2 million pounds (1 million kg), while its copper use will decline by 6.6 million pounds (3 million kg) and its nickel use will fall by 660,000 pounds (300,000 kg) in the 2009 budget year, which begins this Oct. 1, the spokeswoman told Reuters.
The agency said its metal needs reflect a shift in its product mix of coins based on demand, not higher metal prices.
The Mint plans to make more pennies due to new commemorative designs of President Abraham Lincoln on the coin. The penny is made from 97.5 percent zinc and the rest is a copper coating.
There will be less production of nickels, dimes, quarters and dollar coins that are made from copper and nickel.
The Mint is expected to produce 15.377 billion coins in the 2009 budget year, down from 15.425 billion coins in the current spending year.