World oil prices rebounded this week in volatile trading amidst rising US crude inventories and production by Opec approaching the highest level for 26 years. Cocoa future dropped to an almost ten-month low on prospects of a strong harvest and more peaceful times in leading producer Ivory Coast. The Commodities Research Bureau's index of 17 commodities fell to 299.34 points on Friday from 304.88 points the previous week.
GOLD: Gold prices tumbled this week as the dollar advanced strongly against the euro. The dollar got a fillip Friday from strong US jobs creation in April. The single European currency fell to 1.2827 dollars in late European trading from 1.2956 late on Thursday in New York. The dollar stood at 104.94 yen, from 104.46 on Thursday.
A stronger dollar makes gold - priced in the US unit on world markets - more expensive for buyers using other currencies and so its nominal price tends to fall to compensate.
"Overall, the market appears well established in a wide range between 422 and 437 dollars and with little reason to expect prices to break either bound in the foreseeable future," Barclays Capital analyst Kamal Naqvi said.
On the London Bullion Market, gold prices dropped to 425.15 dollars per ounce at the late fixing on Friday from 435.70 dollars the previous week.
SILVER: Silver prices resisted better than its sister metal gold, managing to climb above the psychological 7.0-dollar per ounce barrier. "Silver is finding support from technical sources at the moment," said James Moore, an analyst for the specialist website TheBullionDesk.com. On the London Bullion Market, silver prices rose to 7.035 dollars per ounce at the late fixing Friday from 6.980 dollars the previous week.
PLATINUM, PALLADIUM: Palladium and platinum prices won support from rising car sales in the United States, analysts said. The sister metals are used in the manufacture of catalytic converters, an important part of a car's emissions control system. By Friday, platinum prices advanced to 873 dollars per ounce on the London Platinum and Palladium Market from 867 dollars the previous week.
Palladium prices stood at 195 dollars per ounce on Friday from 196 dollars.
BASE METALS: Base metals prices were mixed amid concerns about slower world growth. "The base metals complex is in the midst of a crisis of confidence with a slew of data showing a slowdown in global growth," Barclays Capital analyst Ingrid Sternby said. By Friday, three-month copper prices fell to 3,170 dollars per tonne on the London Metal Exchange Friday from 3,213 dollars a week earlier.
Three-month aluminium prices dropped to 1,778.50 dollars per tonne Friday from 1,814 dollars. Three-month nickel prices gained to 16,800 dollars per tonne on Friday from 16,000 dollars. Three-month lead prices advanced to 990 dollars per tonne Friday from 958 dollars. Three-month zinc prices decreased to 1,254 dollars per tonne Friday from 1,293 dollars. Three-month tin prices stood at 8,150 dollars per tonne Friday from 8,010 dollars.
OIL: Oil prices rebounded, despite a hike in US crude inventories and higher output from the Organisation of Petroleum Exporting Countries that eased supply concerns. World oil prices recovered above 50 dollars on Wednesday after a rollercoaster session of trading that saw prices tumble earlier on the back of a sharp weekly rise in US gasoline stockpiles. The rally in prices was due to short covering - traders buying back previously sold stock - as the market failed to break a key technical level despite the bearish data, analysts said.
"There are really no bullish factors at the moment," said Victor Shum, an analyst with US energy consultancy firm Purvin and Gertz.
"Both supplies and inventories are building up; any upward (price) movement most likely wouldn't be long-lasting."
The US Department of Energy (DoE) said Wednesday that gasoline supplies for the week ending April 29 rose 2.2 million barrels to 213.5 million, comfortably beating market expectations.
Gasoline or petrol was under scrutiny ahead of the traditional high-demand holiday period starting at the end of May - when many Americans take to the open road.
Weekly US crude stocks meanwhile jumped 2.6 million barrels to 327 million, the DoE report showed. Immediately following publication of the data, New York's main contract, light sweet crude for delivery in June, fell to 48.80 dollars per barrel, below 49 dollars for the first time since February 18.
Meanwhile, the market largely ignored news that Opec production had surpassed 30 million barrels per day, a level approaching a 26-year high point.
By Friday New York's light sweet crude for June delivery climbed to 51.46 dollars per barrel from 49.72 dollars the previous week.
In London, Brent North Sea crude for June delivery advanced to 51.81 dollars per barrel from 51.09 dollars.
RUBBER: Rubber prices gained a little ground this week owing to a lack of rain in major producer countries. "Sentiment would definitely be a little bit lower if there were some rains in Asia," one London trader said. The traditional rain season was supposed to begin in April in Malaysia, Thailand and Indonesia.
The "Golden Week" of public holidays in China and Japan from May 3-5 also led to thin trading conditions.
In Osaka, the RSS 3 June contract rose to 143.40 US cents on Friday, from 140 cents a week earlier.
Singapore's RSS 3 June contract firmed to 131.25 US cents on Friday, from 131 cents.
COCOA: Cocoa futures fell to the lowest level for nine and a half months on the prospect of a good harvest and reduced tensions in leading producer Ivory Coast. Cocoa dropped to 803 pounds per tonne Thursday in London - the lowest level since July 12, 2004. "The more or less smooth unwinding of the peace effort has removed or alleviated the prospect of inflammatory tensions," Prendergast said. Ivory Coast was to hold presidential polls on October 30, a major step towards resolving a conflict that has divided the west African state since a failed coup sparked a civil war in September 2002.
On Liffe, London's futures exchange, the price of cocoa for July delivery fell to 808 pounds per tonne on Friday from 817 a week earlier.
On the CSCE, the New York futures market, the July contract slipped to 1,462 dollars per tonne on Friday, from 1,497 dollars.
COFFEE: Coffee prices were mixed after soaring to the highest point for more than five years in London on huge speculative buying, while New York prices showed volatility. On Wednesday Robusta coffee reached 1,135 dollars per tonne - a level not seen since February 4, 2000 - then dropped slightly as traders locked in gains. "Coffee futures retreated from their recent highs as speculators took profits," Prendergast said.
On Liffe, Robusta quality for July delivery gained to 1,112 dollars per tonne on Friday from 1,086 dollars a week earlier.
On New York's CSCE market, Arabica for July delivery declined to 121.70 cents per pound on Friday, from 126.80 cents.
SUGAR: Sugar prices fell, reaching a three-week low point on Thursday on speculative sales. "Sugar futures gave way under a barrage of fund selling... to come to three-week lows as funds took charge of a lagging market," Prendergast said. That was despite continued expectations of strong demand. "Market bulls continue to wait for the materialisation of Russian, Indian and possibly Chinese buying."
By Friday on Liffe, the price of a tonne of white sugar for August delivery decreased to 241.50 dollars on Friday from 246.50 dollars a week earlier.
On the CSCE in New York, a pound of unrefined sugar for July delivery stood at 8.35 cents on Friday from 8.48 cents.
GRAINS AND SOYA: Soya and grains prices fell due to favourable weather conditions in leading producer the United States. "The market has been hit pretty hard because of the good pace on corn plantings and weather", said Joe Victor, analyst with the Allendale brokerage firm. Maize hit 197 cents per bushel in New York on Tuesday - the lowest level since February 16. Meanwhile, "the weather projections are pretty good" in the United States, Victor said.
On Liffe, wheat for May delivery stood at 64.50 pounds per tonne on Friday from 65.75 pounds a week earlier.
In Chicago, the price of wheat for May delivery dropped to 307 cents per bushel Friday from 325 cents.
Maize for May delivery declined to 198.75 cents per bushel on Friday from 205.25 cents.
Soyabeans for May delivery fell to 623 cents per bushel on Friday from 624 cents.
May-dated soyabean meal - used in animal feed - dipped to 193 dollars per tonne on Friday from 195.60 dollars.
COTTON: Cotton prices fell under pressure from speculative selling but the decline was limited by commercial buying. "The recent speculative washout seems to have slowed and trade buying is coming in at lows, which is supporting the market," Prendergast said. Asian demand was expected to increase. "The trend of strong cotton demand is expected to carry through to the next marketing year with much of that demand growth expected to come from China."
New York's July contract dipped to 53.40 cents per pound on Friday from 57.20 cents the previous week.
The Cotton Outlook Index of physical cotton stood at 56.60 cents on Thursday from 58.55 cents a week earlier.
WOOL: Wool prices steadied amid growing Chinese demand. "Weak demand and excessive stocks stifle activity in the Western European industry," said weekly industry publication WoolXpress. "But business conditions in the global wool textile industry favour Chinas increasing dominance in raw wool markets." The Australian Eastern index remained unchanged at 7.22 Australian dollars per kilo on Thursday from the previous week.
The British Wooltops indexstood at 389 pence, from 391 pence a week earlier.
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