Commodity Blog

Posts Tagged ‘NYSE’

Cocoa dropped on concerns about the European crisis and the slower-than-expected economic growth in the United States. Traders remained concerned about the potential outcome of talks among Greece and its creditors. US gross domestic product rose 2.8 percent in the last quarter, while the expected growth was 3.0 percent. It’s still better than the 1.8 percent advance in the third quarter of 2011.

Earlier, the agricultural commodity reached the highest price since November as European NYSE-monitored stockpiles fell 1.8 percent since January 9. Additionally, concerns that dry weather in Ivory Coast will hurt output were boosting prices.

Cocoa closed at $2,361 per metric ton on ICE, falling from the opening of $2,452. Intraday, the price reached $2,480 — the highest level since November 14.

Sugar declined on the speculation that production will increase in Brazil and India. Fain Shaffer, the president of Infinity Trading Corp., said that the prices may fall even lower if prospect for the crops.

The Indian government said that the country is planning to export 500,000 metric tons of sugar this week. India’s DCM Shriram Consolidated Ltd. predicted that its sugar production may rise 58 percent this season. Research company Datagro forecast that output in Brazil’s Center South will advance from 33.5 million metric tons in 2010 to 35.1 million tons in 2011.

May delivery for raw sugar dropped $0.0102 (3.6 percent) to $0.2736 per pound by 14:00 on ICE. The prices reached $0.3608 on February 2, the highest level since November 1980. In London, May futures for delivery of refined sugar declined $16.40 (2.3 percent) to $702.60 per ton on NYSE Liffe.

Sugar rallied today on the speculation that output will trail consumption, causing a global deficit. Production in India, the second biggest grower after Brazil, may be lower than previously predicted. Balrampur, India’s second-largest sugar company, estimated that production in India in the year ending September 30 will be 24.5 million metric tons, compared to the November forecast of 25 million tons.

Australia, the third biggest exporter, will also have reduced output as the crops were harmed by adverse weather. Rabobank estimated that the next harvest will produce 3.5 million metric tons. That’s compared to the previous harvest of 3.6 million tons and the earlier forecast of 4.2 million for the next harvest.

March delivery for raw sugar rose $0.0041 (1.3 percent) to $0.3305 per pound by 11:17 on ICE. May futures for delivery of refined sugar advanced $11.20 (1.5 percent) to $780.70 per metric ton on NYSE.

Coffee gained today on concerns that stockpiles in Vietnam are running short and production in Columbia may dwindle. Vietnam, the largest grower of Robusta coffee, has less than 500,000 bags of unsold coffee before the new harvest, while inventories had somewhere between 2 million and 2.5 million bags in the same period last year. Output in Columbia, the second-largest producer of Arabica coffee in the world, may decrease in the next year because of excessive rains and a fungus that harms plants. January delivery for Robusta coffee rose $38 (2.3 percent) to $1,718 per metric ton as of 12:52 on NYSE Liffe. December delivery for Arabica coffee went up $0.006 (0.3 percent) to $1.862 per pound on ICE.

White sugar also rose today on speculation that Russia may increase its imports of the sweetener. Russia’s imports of raw sugar may jump as much as 300,000 tons before end of this year. December delivery for white sugar gained $2.70 (0.4 percent) to $698 per ton on NYSE Liffe.

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.

Steel prices in the U.S. rose for the first time this year today. The decline of steel consumption reached a bottom for the current business cycle and should begin to restore gradually as distributors began restocking their severely depleted inventories. U.S. steel rose $1.12 (3 percent) to $38.61 yesterday in NYSE.

Dollar’s slide causes wheat gain today. Wheat prices increase as speculation that dollar decline will continue leads to expectations for increase in the U.S. grain export. But there is anxiety that if dollar would rebound exports can fall back. September futures for wheat gained $0.0525 (1 percent) to $5.215 per bushel by 10:41 on CBoT.