Posts Tagged ‘Pakistan’
Record Prices of Oil, Cotton & Copper
Oil extended its gains for a second day on concerns about the situation in Egypt. Yesterday clashes broke out between the protesters and the supporters of the current government. The contract for delivery of crude oil in March rose $0.41 (0.5 percent) to $91.27 per barrel on NYMEX.
Cotton jumped to the record as floods in Australia and Pakistan cut supplies. According to reports, Australia lost 300,000 bales, while Pakistan has a shortfall of 2.5 million bales. March futures for cotton delivery gained $0.04 (2.3 percent) to the record price of $1.7622 per pound as of 14:49 on ICE.
Copper prices also climbed to the record as the global economic growth have put strain on stockpiles. LME copper inventories dropped by 150 metric tons to 393,775 tons yesterday. Copper for delivery in Copper for March advanced 0.8 percent to $4.58 per pound on COMEX.
Rice Rallies on Investor Bets and Discount to Other Grains
The rice futures rallied today as the investors bet that the huge discount of this commodity’s prices compared to other grains will spur the demand and growth. As both wheat and corn may seem overbought to many investors to rally further, the funds are turning their heads to rice, which is currently the worst performing of all grains this year.
The floods in Pakistan and the drought in Thailand also contribute to the better outlook of the rice futures at least for the next few weeks. While wheat rose by about 100 percent since June this year, rice dropped about 1/4 of its price, resulting in the widest price gap since early 2008 for these two commodities. The traders believe that the current price may go up by almost a third by the end of the year and suggest looking at supply as the main moving factor. If the weather continues to press on, the rice will continue to rally.
September rice futures is trading near $11.27 per 100 pounds as of 15:37 GMT on CBoT. It rose from $10.94 or more than 3 percent today.
