Commodity Blog

Posts Tagged ‘New York’

The global economic turmoil and uncertainty about the recovery reduce appeal of commodities to traders. Copper, like most other industrial metals, dropped on the mounting signs of a slower recovery.

China’s gross domestic product expanded 9.1 percent in the third quarter from a year ago, showing the slowest pace of growth since 2009. The conditions for New York manufacturers worsened as was shown by the Empire State Manufacturing Index that was at -8.5 in October. The ZEW Indicator of Economic Sentiment for Germany declined to -48.3 in October from -43.3 in the previous month.

December futures for delivery of copper fell 0.5 percent to $3.36 per pound by 13:21 on COMEX. The prices have declined 26 percent in the three months ended September 30, posting the biggest quarterly drop since the end of 2008.

Copper gained today as traders hope that demand from China will outweigh the negative impact of the debt crisis in Europe. Inventories of copper in China, the biggest user, fell by 21 percent in April and as much as 36 percent in May. The positive macroeconomic data from the US also had its positive impact on the outlook for demand. August futures of copper delivery rose 0.6 percent to 68,540 yuan ($10,591) per metric ton on Shanghai Futures Exchange. Futures for delivery copper in September fell 0.4 percent to $4.1205 per pound in New York.

Corn recovered today from a decline on the speculation that producers of ethanol won’t reduce output even after the US Senate voted to remove tax reductions for the industry. Lower prices for corn attracted exporters and animal feeders to the commodity. December futures for corn delivery jumped $0.075 (1.2 percent) to $6.605 per bushel as of 13:15 on CBoT. Earlier, the price slumped to $6.4775, the lowest level since March 17.

Oil surged on concerns that political unrest will spread throughout North Africa and Middle East. The conflict in Libya threatens oil supply as the country holds Africa’s biggest reserve. April delivery for crude oil rose $0.09 to $95.51 per barrel on NYMEX by 9:24 after jumping yesterday $5.71 to $95.42, the highest price since October 2008.

The turmoil was also benefiting to precious metal, including gold and silver. The Libyan military and security forces were attacking protesters that demanded freedom and democracy. April futures for gold delivery gained $12.50 (0.9 percent) to $1,401.10 as of 13:51 on COMEX. The price reached the record level of $1,432.50 on December 7. May futures for silver delivery climbed $0.571 (1.8 percent) to $32.856 per ounce after it reached $34.315, the highest price since March 1980.

The unrest in Libya had negative impact on copper. The industrial metal dropped in London as well as in New York. Delivery for copper in three months dropped 0.6 percent to $9,524 per metric ton on LME, while futures on May delivery subtracted 0.7 percent to $4.3320 per pound on COMEX.

Cocoa rose in New York today for the first time in three sessions as rainfalls slowed production in Ivory Coast, the biggest producer in the world. Prices may rise further in New York after the dollar weakened today. September delivery for cocoa gained $13 (0.4 percent) to $2,980 per metric ton at 9:38 on ICE.

Copper prices rose in New York today for the third consecutive session as rising equities and decreasing stockpiles promised steady demand. The LME-monitored inventories fell for the 14th session to the lowest level since November 30th. The MSCI World Index of shares rose for the second day, signaling about the improving global economic outlook. September futures for copper delivery gained $0.047 (1.6 percent) to $3.018 per pound as of 10:52 on COMEX.

Corn futures gained as the rising prices for a gasoline caused speculation about an increasing demand for grain-based fuels. The rebound in the U.S. economy has led to expectation that the demand for a fuel will increase. May delivery for corn futures gained $0.0075 (0.2 percent) to $3.4525 per bushel by 10:16 on the Chicago Board of Trade.

Cocoa futures fell in New York on the speculation that candy-makers may cut their purchases until prices will drop. The prices previously have rose on slower exports from Ivory Coast, then later dropped on the outlook for the good harvest. May delivery for cocoa retreated $37 (1.2 percent) to $2,953 per metric ton on ICE.

Cotton futures reached the highest price in more than a week after the weaker dollar spurred the demand for some commodities. The falling greenback and tight supply of the fiber are leading to a fairly strong demand. May delivery for cotton climbed $0.011 (1.3 percent) to $0.826 per pound as of 11:36 on ICE.

Uranium prices may begin advance at the end of this year with growing demand from utilities. Supplies from recycling Soviet-era warheads and enrichment facilities can’t catch up demand from such countries as South Korea, China, Russia and India. Analysts predict that prices may climb from $40 per pound to as much as $100. Immediate delivery for uranium oxide concentrate rose 2.4 percent from previous week to $42.25 per pound.

Sugar advanced in New York for a second straight day as importers are planning to increase purchases after prices have dropped. Demand may be supported by rising imports in India and Iraq. Previously prices rose because adverse weather damaged harvests in India and Brazil, then prices declined on speculation about rebounding global production. May delivery for raw sugar advanced $0.0012 (0.7 percent) to $0.1763 per pound by 9:52 on ICE Futures U.S.

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.

Wheat prices went up as some traders are planning to unwind bets on falling prices. Government report said that hedge-fund managers and other large speculators increased their net-short positions by as much as 17 percent in the week ended on March 16th. May futures for wheat delivery went up $0.0575 (1.2 percent) to $4.895 per bushel as of 10:21 on CBoT.

Cocoa futures gained as U.K. pound, used to trade cocoa in London, rose, boosting the attractiveness of contracts traded in New York. Earlier the commodity slid on speculation about increasing production in Ivory Coast. Some analysts think that, without the support of the strong pound or threat of adverse weather in Ivory Coast, cocoa may drop to $2,650 this week. May futures for cocoa delivery gained $25 (0.9 percent) to $2,859 per metric ton by 11:51 on ICE Futures U.S. in New York.

Cotton futures advanced in New York on concern that farmers in the U.S. won’t plant enough this year to meet demand. Analysts say that prices are not high enough to encourage more plating. May delivery for cotton advanced $0.0055 (0.7 percent) to $0.8273 per pound at 12:19 on ICE.

Analysts say that importers will likely increase purchasing of sugar after prices for the sweetener dropped. Raw sugar has tumbled as much as 37 percent from $0.304, the record in 29 years reached on February 1st, on speculation that global deficit will ease. Global production was hampered by adverse weather conditions in Brazil and India in the previous year. Australia, the third biggest exporter in the world, may increase its sugar production by 10 percent this season in case favorable weather remains. May delivery for raw sugar rose 3.8 percent to $0.1903 per pound yesterday in New York.

Gold fell as buyers regained confidence in world economy, curbing appeal of the precious metal as an alternative haven. Sales of all types of gold coins dropped to 53,930 ounces in the first two months of this year, compared with 267,091 ounces in the same period in 2009. Immediate delivery for bullion dropped 0.5 percent to $1,122.10 per ounce by 8:33 in London.

Corn and soybeans prices dropped today as the stronger dollar curbed appeal of commodities as an alternative investment. May futures for corn delivery dropped $0.0275 (0.7 percent) to $3.7125 per bushel by 10:37 on the Chicago Board of Trade. May futures for soybean delivery slid $0.005 to $9.585 per bushel in Chicago.

Copper prices slipped after the dollar gained, diminishing the demand for most metals as an inflation hedge. Prices also fell on concern that demand from China, the largest consumer of the metal in the world, will wane on increasing interest rates. May futures for copper delivery slipped $0.0225 (0.7 percent) to $3.3955 per pound in New York.

Prices for cotton may rise as China, the largest cotton importer, may increase purchases of the fiber 30 percent in 2010. Analysts say that imports may total more than 2 million metric tons, compared 1.53 million tons in the previous year. May delivery for cotton rose 0.3 percent to $0.8137 per pound on ICE.