World oil prices fell sharply on global markets after official data showed crude inventories in the United States at their highest level for six years, allaying concerns over supply shortages. Cocoa, meanwhile, remained under pressure owing to the advancing peace process in major producer Ivory Coast. The Commodities Research Bureau's index of 17 commodities dropped to 292.48 points on Friday - its lowest point since February 22 - from 294.39 points the previous week.
GOLD: Gold prices lost their shine this week, slipping underneath 420 dollars for the first time in three months as the US dollar strengthened.
Gold reached 418 dollars per ounce at the Friday late fixing - a level last seen on February 11. "Gold remains in dollar-watching mode," said Barclays Capital analyst Kamal Naqvi, adding that "currencies remain the key to gold's short-term direction". A stronger US currency means that gold - denominated in dollars on world markets - becomes more expensive for buyers.
On the London Bullion Market, gold prices slid to 418 dollars per ounce at the late fixing on Friday from 425.15 dollars the previous week.
SILVER: Silver prices gained on speculative sales, following the opposite direction of gold in an unusual break from traditional price movements. "Speculative buying has provided the short-term volatility in the silver market," said UBS analyst John Reade. "Silver is a full US dollar higher than it was in June 2004." On the London Bullion Market, silver prices rose to 7.100 dollars per ounce at the late fixing Friday from 6.880 dollars the previous week.
PLATINUM AND PALLADIUM: Palladium and platinum prices fell as traders digested an annual report from research group Johnson Matthey. "The tone was upbeat for platinum (and rhodium) and rather downbeat for palladium," said UBS analyst John Reade. The report said that Chinese jewellery demand, which uses platinum in its production, started out on a positive note in 2005 - while palladium would remain in plentiful supply. By Friday, platinum prices eased to 863 dollars per ounce on the London Platinum and Palladium Market from 865 dollars the previous week.
Palladium prices stood at 187 dollars per ounce on Friday from 188.50 dollars.
BASE METALS: Base metals steadied as investors looked to the health of the US economy. "The markets are expected to continue to consolidate while the economic outlook becomes clearer and this may well lead to short-covering and lift copper, aluminium and zinc off their recent lows," said William Adams, analyst with specialist website Basemetals.com. "In a nutshell, the US economy is still showing signs of strength while inflation seems to be under control" and "the dollar will continue to exert influence on the metals".
By Friday, three-month copper prices was unchanged at 3.048 dollars per tonne on the London Metal Exchange Friday from the previous week.
Three-month aluminium prices rose to 1,742.50 dollars per tonne Friday from 1,741 dollars. Three-month nickel prices sank to 16,100 dollars per tonne on Friday from 16,600 dollars. Three-month lead prices increased to 961 dollars per tonne Friday from 926 dollars. Three-month zinc prices firmed to 1,239 dollars per tonne Friday from 1,237 dollars. Three-month tin prices stood at 8,030 dollars per tonne Friday from 8.150 dollars.
OIL: World oil prices slipped to three-month lows in New York and London, amid fresh increases in crude stockpiles in the United States. New York's main contract slumped to three-month low point Friday in the wake of the energy report, falling to 46.70 dollars - the lowest point since February 14. London Brent crude meanwhile sank to 47.65 dollars Monday, last seen February 22.
The US Department of Energy said crude oil inventories for the week ended May 13 rose by 4.3 million barrels to 334 million barrels - the highest monthly figure since May 1999, beating forecasts of a 1.0-million increase.
The DoE said that gasoline reserves rose 1.1 million barrels over the week to 214.8 million, far more than the 800,000 barrels foreseen by analysts.
That eased fears of a supply shortfall heading into the US summer driving season, when demand for gasoline (petrol) peaks in the world's biggest oil-consuming nation.
Traders also digested comments from Saudi Oil Minister Ali al-Nuaimi who said the Opec kingpin was prepared to boost output "as the market dictates", while adding that high or unstable prices were "not in the interest of producers."
Added to the picture was a continuing strike at French energy giant Total, which was making efforts to ensure that there were no supply problems after five days of strikes at its refineries in France.
The French government said there was no short-term risk of a petrol shortage at service stations in France, dismissing union claims.
By Friday, New York's light sweet crude for June delivery plunged to 46.80 dollars per barrel from 48.20 dollars the previous week.
In London, Brent North Sea crude for June delivery plummeted to 48.20 dollars per barrel from 49.49 dollars prices rose owing to poor weather and less rain in major producing countries in Asia. There has been a "steadier market because of mainly supply concerns", said one anonymous London trader.
"The weather in the main (Asian) growing regions, especially in Thailand, has not been good, causing at least one week lost of production."
In Osaka, the RSS 3 July contract rose to 152.90 US cents on Friday, from 146 cents a week earlier. Singapore's RSS 3 July contract climbed to 135 US cents on Friday, from 131.50 cents.
COCOA: Cocoa futures were under pressure against a backdrop of dissipating tensions in leading producer Ivory Coast. "The successful implementation of the peace agreement and favourable weather conditions for the mid-crop in Ivory Coast have kept prices under pressure," Refco analyst Ann Prendergast said. The European Union said Thursday it wanted the United Nations to play a major part in Ivory Coast's presidential elections in October and for UN resources to be used to help the disarmament process there.
Rebel and army forces signed an agreement on the timeframe for disarmament in Ivory Coast, which is divided between the rebel north and loyalist south and has been in turmoil since a September 2002 uprising.
On Liffe, London's futures exchange, the price of cocoa for July delivery firmed to 813 pounds per tonne on Friday from 812 a week earlier.
On the CSCE, the New York futures market, the July contract stood at 1,439 dollars per tonne on Friday, from 1,445 dollars.
COFFEE: Coffee prices were mixed this week after hitting a fresh five-year high point in London as a dry Vietnam harvest impacted the market. Coffee reached 1,157 dollars per tonne Wednesday, a level not seen since mid-January 2000. "Renewed concerns about dryness in Vietnam gave the market a boost. Vietnamese exporters are holding back beans in the hope of higher prices," Prendergast said.
Vietnam is the second-biggest world coffee producer behind Brazil - which is approaching a traditional period of colder weather conditions.
On Liffe, Robusta quality for July delivery increased to 1,144 dollars per tonne on Friday from 1,130 dollars a week earlier.
On New York's CSCE market, Arabica for July delivery stood at 117.80 cents per pound on Friday, from 121.90 cents.
SUGAR: Sugar prices increased on greater commercial buying and rumours of higher Asian demand. Prices continued to rise "as trade buying overcame producer and local selling" amid "rumours of a (large) purchase in the Far East", Prendergast said. By Friday on Liffe, the price of a tonne of white sugar for August delivery rose to 246.30 dollars on Friday from 241.20 dollars a week earlier.
On the CSCE in New York, a pound of unrefined sugar for July delivery stood at 8.56 cents on Friday from 8.30 cents.
GRAINS AND SOYA: Soya and grains prices mostly rose due to changing weather patterns in leading producers the United States and Australia. "Investors wonder whether the maize crop will receive enough rain, but fear that soya might receive too much of it," said Allendale analyst Joe Victor. On Liffe, wheat for July delivery stood at 68.50 pounds per tonne on Friday from 67.90 pounds a week earlier.
In Chicago, the price of wheat for July delivery rose to 312.75 cents per bushel Friday from 302.75 cents.
Maize for July delivery gained to 212.75 cents per bushel on Friday from 203.50 cents. Soyabeans for July delivery climbed to 636 cents per bushel on Friday from 612.75 cents. July-dated soyabean meal - used in animal feed - increased to 197.40 dollars per tonne on Friday from 189.40 dollars.
COTTON: Cotton prices fell amid speculative selling, strong demand and predictions of record world production for the 2005-2006 season. "The heavy speculative selling appears to have abated for the moment," said Prendergast. The current ongoing trade row between China, the European Union and the United States over textile imports would likely help "cap upwards price momentum", Barclays Capital analysts said.
China on Friday made a conciliatory gesture to the United States and European Union to ease simmering trade tensions, announcing it will raise export tariffs on 74 categories of textile products from June 1.
The ministry of finance said on its website that the 74 categories were among 148 products on which tariffs had already been placed at the end of the decades-long global textile export quota system on January 1.
New York's July contract dropped to 50.30 cents per pound on Friday from 54.38 cents the previous week.
The Cotton Outlook Index of physical cotton stood at 55.50 cents on Thursday from 57.30 cents a week earlier.
WOOL: Wool prices continued rising as the Australian dollar fell against its US counterpart, while Chinese demand stayed solid. The Australian dollar fell 1.8 percent against the US dollar this week, finishing Thursday at 75.92 US cents. "It was a good sale (week) with good early gains associated with the falling US exchange rate," said the Australian Wool Industries Secretariat. "Buyers for China were very strong, while demand from Europe was reported as quiet."
The Australian Eastern index remained climbed to 7.40 Australian dollars per kilo on Thursday, from 7.27 Australian dollars a week earlier.
The British Wooltops index stood at 392 pence, from 389 pence the previous week.
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