Oil prices rebounded last week owing to falling US energy reserves and a recovery for global equities. US stocks rose sharply Friday as Federal Reserve chief Ben Bernanke said the US central bank would act "to limit the adverse effects" of the mortgage crisis on the economy.
Meanwhile the White House unveiled plans to aid homeowners facing foreclosure. Many commodity prices had slumped earlier in August on fears of a global economic slowdown linked to losses in the US subprime mortgage market - high-risk home loans to which many banks and investment funds are exposed.
OIL: Crude prices recovered, with New York crude climbing above 74 dollars a barrel on Friday for the first time since early August. Oil prices were well underpinned at the end of the week by a potential storm forming in the Atlantic which re-ignited fears that supply from Gulf of Mexico oil installations could be squeezed.
Meanwhile, a weekly US inventory report released earlier this week has also lent support to oil futures. The data showed that gasoline supplies remain well below average and that crude stocks fell by more than the market had expected.
The Department of Energy said on Wednesday that US gasoline, or petrol, inventories dived by 3.6 million barrels last week, sharper than the forecasted 2.5 million barrels.
Motor fuel inventories remain far below normal levels as refiners in the United States have struggled to keep up during the peak demand of the holiday driving season, which began in May and wraps up this weekend with the Labour Day holiday. By Friday, New York's main oil futures contract, light sweet crude for delivery in October, surged to 74.14 dollars a barrel, from 70.64 dollars a week earlier.
In London, Brent North Sea crude for October delivery soared to 72.95 dollars a barrel on Friday, compared with 70.39 dollars a week earlier.
GRAINS AND SOYA: Wheat prices rocketed to an all-time closing high of 7.845 dollars a bushel on Thursday. "Demand remains very strong for US wheat," Allendale analyst Joe Victor said.
By Friday on the Chicago Board of Trade, the price of maize for December delivery fell to 3.41 dollars a bushel, from 3.58 dollars a week earlier. Wheat for December delivery propelled to 7.84 dollars a bushel, from 7.42 dollars the previous week. On the Liffe, London's futures exchange, the price per tonne of wheat for May delivery jumped to 180.00 pounds, from 163.50 pounds a week earlier.
PRECIOUS METALS: Gold, silver, platinum and palladium prices all rose. "Given the weaker outlook for the dollar and the fact that gold is now entering a period of traditionally strong physical demand the outlook is now beginning to look far more bullish," said James Moore, analyst at theBullionDesk.com.
On the London Bullion Market, gold advanced to 672 dollars an ounce at Friday's late fixing, from 660.85 dollars a week earlier. Silver rose to 11.95 dollars an ounce, from 11.70 dollars. On the London Platinum and Palladium Market, platinum gained to 1,268 dollars an ounce at the late fixing Friday, from 1,240 dollars a week earlier. Palladium increased to 330 dollars an ounce, from 323 dollars.
BASE METALS: Base metals prices strengthened as equity markets further shook off worries about a global credit crunch linked to a weak US subprime mortgage market. "The (base metals) markets look ... likely to move higher," Sucden analysts said.
On Friday, the price of copper for delivery in three months gained to 7,530 dollars a tonne on the London Metal Exchange, from 7,198 dollars a week earlier. --Three-month aluminium prices rose to 2,560 dollars a tonne, from 2,521.75 dollars.
--Three-month nickel prices climbed to 30,000 dollars a tonne, from 27,099 dollars.
--Three-month lead prices advanced to 3,195 dollars a tonne, from 3,185 dollars.
--Three-month zinc prices increased to 3,120 dollars a tonne, from 3,090 dollars.
-Three-month tin prices leapt to 15,637 dollars a tonne, from 14,374 dollars.
COCOA: Cocoa prices rebounded after sinking to a six-month low the week before. On the New York Board of Trade (NYBOT), the September contract rallied to 1,868 dollars a tonne, from 1,784 dollars the previous Friday.
COFFEE: Coffee prices fell heavily in New York amid the prospect of a large harvest in producer nation Vietnam. "The conditions (in Vietnam) have been and are nearly ideal" for coffee output, said analysts at VM Group. By Friday on the Liffe, Robusta quality for November delivery firmed to 1,721 dollars a tonne, from 1,711 dollars one week earlier. On the NYBOT, Arabica for December delivery dropped to 116.40 US cents a pound, from 118.95 cents.
SUGAR: Sugar prices edged down in London and New York amid expectations of a supply surplus. Global sugar output was predicted to outpace demand by a record 10.8 million tonnes in the crop year ending September 2008, the International Sugar Organisation recently forecast.
By Friday on the Liffe, the price per tonne of white sugar for October delivery fell to 277.40 pounds, from 281 pounds a week earlier. On the NYBOT, the price of unrefined sugar for October delivery dipped to 9.50 US cents a pound, from 9.53 cents a week earlier.
RUBBER: The price of rubber extended gains owing to heavy rain in Malaysia and Thailand that further tightened supply. "The prices could go up again next week as we expect the bad weather to persist, at least for another month."
On Thursday, the Malaysian Rubber Board's benchmark SMR20 increased to 206.55 US cents per kilogram, from 204.35, the previous Friday. Malaysian markets closed Friday for a public holiday.
WOOL: Wool prices were lower in major producer Australia as fewer overseas buyers entered the market and the issue of China's wool quota remained unresolved."This week saw an easing in the market after last week's gains," the Australian Wool Industry Secretariat said.
The Australian wool market finished the week 2.4 percent lower on average, with the Eastern Index losing 25 cents, or 2.7 percent, to end at 9.10 dollars a kilo.
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