DAILY COMMODITIES REPORT

[Watson]

London Metal Exchange prices were loosely held in ranges in nervous trading on Tuesday, as supply worries encouraged buying, while scaled-up selling capped bolder advances, traders said.

Traders said that investors were also wary of taking short positions with a rash of labour disputes threatening supplies.

Strikes are already causing disruption to North American aluminium production, while Grupo Mexico subsidiary Asarco's U.S. copper units may be hit by industrial action if pay talks scheduled for the week of August 16 fail.

advertisement

advertisement
The market was also wary ahead of further macro-economic data, including the state of the labour market in the United States, expected on Friday.

Copper was quoted at $2,807 a tonne, down from $2,815 at Monday's evening kerb close.

Aluminium was up $7 to $1,702, while nickel was down $250 at $13,650.

Lead and zinc edged up, while tin was untraded in the kerb, ending slightly down.


NYMEX crude oil futures ended above $44 a barrel after hitting new highs in trade on concerns that OPEC has no extra oil to pump to cool prices, analysts said on Tuesday.

NYMEX September crude settled 33 cents firmer at $44.15 a barrel after hitting a record $44.24 in ACCESS trade.

OPEC President Purnomo Yusgiantoro said Tuesday the cartel had no spare oil at hand to dampen prices.

Purnomos comments echoed those on Monday of Algerian Oil Minister Chakib Khelil, who said OPEC had done all it could to stop this years oil price rally.

In London, September IPE Brent crude settled up 67 cents at $40.64 a barrel.

Despite the market being at new highs, there was still resistance to overcome, but holding support would be more important than resistance this week, technical analysts said.

Concerns about lack of spare OPEC capacity compounded worries about possible supply disruption from Russia, where the nations biggest oil company YUKOS is battling bankruptcy.

[Watson]

Feel free to voice your opinion...cheers Watson

5/8/04
London Metal Exchange (LME) metals ended mostly weaker in ranges on Wednesday, drifting in thinly traded volumes on short and technical selling and profit-taking, traders said.

LME options declarations passed routinely on Wednesday, traders said.

However, labour disputes at various plants, mines and smelters remain firmly within scope, underpinning support for metals prices.

Union workers at Alcoa's shuttered aluminium smelter in Wenatchee, Washington, planned to vote on the company's final contract proposal on Tuesday night.

Union leaders rejected an initial offer because it demanded concessions such as higher healthcare payments.

The company also faces possible worker stoppages over outsourcing work at plants in Indiana, Texas, Iowa and Tennessee, while another strike has shut down two-thirds of production at its aluminum smelter in Becancour, Quebec, since July 7.

And south of the border, operations have just resumed at Grupo Mexico's La Caridad mine copper mine after a 17-day strike, which the government had declared illegal.

Copper closed Wednesday's rings at $2,785 a tonne from $2,807 at Tuesday's kerb close, while aluminium was $17 lower at $1,686.

Zinc and nickel also edged down, although lead pushed up $20 as nearby supply tightness kept the backwardation up around $80, while tin was unchanged.

NYMEX crude oil and gasoline futures fell sharply Wednesday after government data showed U.S. inventories of refined products increased last week and as OPEC said it was ready to use its spare production capacity to cool off prices, analysts said.

September crude settled down $1.32 at $42.83 a barrel, after overnight ACCESS trading pushed it to $44.34, the loftiest level in the future contracts 21-year history.

September gasoline settled down 8.32 cents at $1.2034 a gallon, breaking through technical support at $1.25.

The U.S. Energy Information Administrations weekly oil stocks report showed crude stocks fell 1.9 million barrels to 298.6 million barrels in the week ended July 30, leaving an inventory surplus of 13.7 million barrels over last year.

In London, September Brent crude settled 94 cents weaker at $39.70 a barrel.

NYMEX September heating oil settled down 2.59 cents at $1.1556 a gallon

[Watson]

6/8/04

London Metal Exchange (LME) prices were mixed with most metals within ranges at Thursday's kerb close, traders said.

Bellwether copper closed $2 higher $2,787 a tonne, having peaked earlier at $2,845.

Traders said that low volumes due to the northern hemisphere summer slowdown made for volatile trading conditions. At the same time investor caution was running high.


"The markets look slow and lazy but there is some underlying business. People are very nervous on both sides of the market," one LME trader said.

"Prices looked a bit top-heavy this morning and later we saw a bit of Chinese stopping out," another trader said.

Nickel fell 4.26 per cent or $575 to $12,925.

"Nickel broke support at $13,500. There should be some trade buying around these numbers and it could pop up tomorrow, but the emphasis is still on the downside," the second trader said.

The first trader said he had not seen much buying interest in nickel and expected consumers to wait for prices to soften further before buying.

"The market is well supplied physically and they (consumers) are waiting for the price to come down," he said.

Traders said that the price could fall to $12,000 where it would languish for the rest of the month.

"If the price does come down it will probably stay there for the summer," the first trader said.

Aluminium was $2 higher at $1,688, while lead and zinc softened to $873 and $1,024 respectively from $897 and $1,033 on increased availability of stock.

Tin was down $50 at $8,650.

NYMEX crude futures set a new high on Thursday amid renewed concerns about Russian oil major YUKOS finances and its ability to export oil, more than reversing Wednesdays losses, traders said.

Crude markets rebounded after Wednesdays sharp drop as Russia's Justice Ministry revoked oil major YUKOS permission to use bank accounts to finance daily operations, keeping traders concerned about oil exports.


Cheers W

[Watson]

London Metal Exchange (LME) prices were mostly lower by Friday's kerb close, dragged down by lead and zinc responding to news of a smelter restart, traders said.

On Friday morning officials at Glencore International's Portovesme confirmed the plant was operating and was heading towards full capacity.

Zinc fell by $23.50 to $1,000.50, while lead dropped from $873 to $860

A series of conflicting news reports had left the market confused, but traders said the clarification had made holders of long positions consider reducing their exposure.

The prospect of increased lead availability took pressure off the cash to three months spread for lead, which fell from $76/86 on Thursday morning to $25/35 on Friday afternoon.

A fall in the value of the dollar following weaker than expected U.S. jobless data was not enough to lift prices.

The euro was up 1.3 per cent to about $1.2269 by 1549 GMT.

The market will now look forward to the Federal Open Market Committee's meeting on August 10 for changes in U.S. interest.

Copper fell to $2,784 from $2,787 as last minute buying helped shore up the metal, while aluminium fell $4 to $1,684.

Nickel fell $75 to $12,850, while tin bucked the downtrend and closed up $150 at $8,800.

NYMEX

NYMEX crude oil futures fell sharply on Friday after a Russian court overturned the seizure of beleaguered Russian major YUKOS's core oil unit by bailiffs, analysts said.

NYMEX September crude settled down 46 cents at $43.95 a barrel after hitting $44.77 overnight in the wake of a U.S. refinery fire and worries over oil exports from YUKOS. That was crudes loftiest level since oil futures started trading in 1983 and the sixth consecutive trading day that it hit a new high.

Meanwhile, weaker-than-expected U.S. July payroll data prompted worries that high oil prices are hurting economic growth.

In London, Brent crude fell 49 cents to $40.63 a barrel.

[Watson]

Metal prices lower amid fund-selling
Source: AAP
Date: 2004-Aug-10 06:58 AM

London Metal Exchange (LME) prices ended mostly lower in open-outcry trading on Monday because of fund selling, while nickel rose on firm fundamentals, traders said.

COMEX copper futures fell to 12-day lows after recent soft U.S. economic data and uncertainty about the Federal Reserve's view on interest rates triggered fund liquidation.

Traders said Monday's fund selling had mostly affected copper, lead and zinc, pulling down others apart from nickel.


Nickel's firm fundamentals have been cemented this summer on firm consumption.

Some producers in Europe have opted to keep production at full rather than cut their output while conducting maintenance during the northern hemisphere summer.

Nickel ended at $13,350 a tonne, up $500.

Copper closed at $2,720, down $64, while aluminium was at $1,665, down $19.

Other metals ended down.

NYMEX

NYMEX crude oil futures ended up sharply Monday, posting a new high for the seventh straight session just beneath $45 a barrel as militant threats shut oil output in southern Iraq, analysts said.

NYMEX September crude settled 89 cents or 1.9 per cent higher at $44.84 a barrel, after shooting up to an intraday high of $44.98 to mark the loftiest level on NYMEX since it started trading oil futures 21 years ago. Support was earlier charted at $43. On Friday, the contract hit a high of $44.77 in ACCESS trading.

In London, Brent crude settled up 93 cents or 2.3 per cent at $41.56 a barrel.

Meanwhile, an official of Russia's state railways said it expected no disruptions in YUKOS oil and refined oil products exports after Aug. 10, when the firms deadline to pay shipping fees expires.

There are also worries that supplies from OPEC-member Venezuela, the worlds fifth largest oil exporter, may be disrupted during the referendum on Aug. 15 on the rule of President Hugo Chavez.

NYMEX September gasoline settled 0.54 cent or 0.4 per cent higher at $1.2401 a gallon, about the midpoint between support at $1.20 with resistance at $1.30.

[Watson]

Base metals prices picked up during late Tuesday London Metal Exchange (LME) trading, ending a routine session around the highs as participants geared up for the US interest rate announcement later.

Copper recovered from Monday's sell-off amid early Chinese buying and short covering to end at $2,736 a tonne, up $16 from Monday's kerb close.

However, the fundamental picture from the supply side remained uncertain.


Workers at Grupo Mexico's Cananea mine were in talks with company bosses on Monday and looked close to reaching a deal before Tuesday's strike deadline, a union spokeswoman said.

A strike at Cananea in Mexico - which produces around 130,000 tonnes of copper concentrate per year and some 50,000 tonnes of refined copper at its SX-EW plant - would affect up to 3,000 workers, she said.

But Grupo Mexico still faced a strike threat at its U.S. unit Asarco, where talks with unions are due to resume on August 16, a union spokesman there confirmed.

Aluminium eventually cleared resistance at $1,675/1,680 and finished the day at $1,686, up $21, while nickel was aided by a tightening in the spread and ended $125 higher at $13,475.

Lead recovered some poise after last week's sell-off, closing $10 higher at $857, while zinc was $13 up at $985. Tin was unchanged at $8,750/8,775.

NYMEX crude oil ended lower Tuesday, backing down from an all-time high above $45 a barrel after Iraq restored full production from its southern oilfields.

September crude settled down 32 cents at $44.52 a barrel, after rising in the morning to $45.04, the loftiest level since NYMEX launched its oil futures in 1983.

In London, Brent crude settled down 28 cents at $41.28 a barrel.

Iraq resumed full oil production in its southern oilfields after quickly repairing a pipeline valve blown up on Monday by saboteurs, an Iraqi oil official said on Tuesday. The official said both export lines from the fields in the Basra region were exporting to Gulf shipping terminals.

Technical analysts said that after hitting $45, NYMEX crude could pop up in the next few days to $50.

A rise in U.S. crude inventories could cool off prices a bit on Wednesday, analysts said. A Reuters poll of seven analysts showed average expectations for an increase in stocks of 1 million barrels amid increased imports and reduced refinery operations. The U.S. Energy Information Administration will release its weekly survey at 10:30 a.m. EDT (1430 GMT) Wednesday.

September gasoline settled 0.52 cent lower at $1.2349 a gallon, after trading between $1.2230 and $1.2520. Technical analysts chart support at $1.20, with resistance at $1.30.

[Watson]

London Metal Exchange (LME) copper closed 1.06 per cent higher on Wednesday on technical buying, while other metals were mixed, traders and analysts said.

Traders expect liquidity to increase in the coming weeks as business picks up after the traditionally slow European summer holiday period.

Traders said following Tuesday's US Federal Reserve interest rate rise, the market would watch Thursday's weekly US jobs figures and July retail sales data for more clues on the state of the economy and potential affect on currencies.


Copper closed at $2,765 a tonne, up $29 from Tuesday's kerb close.

MacMillan said that despite the recent shake-out, the outlook for copper was bullish.

"From a technical perspective you can argue this has re-created the uptrend and we are moving higher again," he said.

"Fundamentally I remain friendly towards copper. Stocks are still going down and when we get to end of the summer lull there won't be much metal around," he said.

Aluminium closed at $1,685, down $1, while nickel fell $275 to $13,200 after fund buying dried up.

Lead rose $21 to $878 on short covering, while zinc dropped $8 to $977.

Tin ticked up $30 to $8,780.

NYMEX crude oil futures rose near all-time highs on Wednesday on a new threat by militants to bomb oil pipelines in Iraq and as OPEC member Algeria raised doubts that Saudi Arabias extra oil capacity would be enough to meet additional market needs.

US authorities also said that about 25 per cent of US oil production in the Gulf of Mexico had been shut ahead of Tropical Storm Bonnie, raising supply worries.

Prices slumped earlier by more than $1 as Saudi Arabia, the worlds top oil exporter, vowed to raise supplies to meet extra market demand. In early trading, NYMEX crude rose initially, then fell, after government data showed a sharp decrease in crude stocks.

NYMEX September crude settled up 28 cents at $44.80 a barrel, after rising to a session high of $44.96. It traded as low as $43.30 earlier. The contract had set a new record for the eighth consecutive trading day on Tuesday of $45.04.

In London, September Brent crude settled 29 cents higher at $41.57 a barrel, after soaring to an new all-time high of $41.70

[Watson]

London Metal Exchange (LME) prices closed higher on Thursday, buoyed by a short-covering rally in aluminium, analysts and traders said.

Aluminium firmed to $1,715 a tonne by the kerb close, up $30 on Wednesday's last open outcry.

Traders said aluminium pushed higher in the thin conditions after hitting buy stops at $1,700.


Inventories have fallen from over 1.45 million tonnes in late January. Briggs said that if the stockdrawn accurately reflected the market balance, global demand would have to have grown by nearly 11 per cent this year.

Copper rose $7 to $2,772.

The cash to three months spread narrowed to $75/80 backwardation from $90 earlier on Thursday.

Nickel was unchanged at $13,200, while tin was locked firmly in ranges, up $20 at $8.800.

Lead was up $9 at $887 and zinc firmed $10 to $987.

NYMEX crude oil futures settled at their highest level ever on Thursday, after setting a new record for the ninth day in 10 sessions, amid fears of supply disruption as fighting in Iraq raged and another setback for beleaguered Russian oil giant YUKOS, analysts said. The higher closing came even as worries about supply outages in the Gulf of Mexico began to subside as oil companies operating in the region began restoring production and returning workers to platforms.

NYMEX September crude settled at $45.50 a barrel, up 70 cents or 1.6 per cent, after hitting $45.75, the highest price since the New York Mercantile Exchange started trading oil futures 21 years ago. Fund buying fuelled much of the days gains, traders said.

In London, Brent crude settled up 72 cents, or 1.7 per cent, at $42.29, after shooting up to yet another record at $42.56.

September gasoline settled up 3.59 cents, or 2.8 per cent, at $1.2981 a gallon. It broke above resistance at $1.29 and hit a session high of $1.3090.

September heating oil settled 2.04 cents, or 1,7 per cent, higher at $1.1910 a gallon, after trading between $1.1735 and $1.1990. Support was slated at $1.12, with resistance at $1.20.

COMEX gold ended lower in confused trading on Thursday, after news of a solid, though smaller-than-expected, rebound in July US retail sales firmed the dollar and deflected traders from the yellow metal.

COMEX December gold settled down $1.30 at $396.60 an ounce, trading from $400.50 to $396.10. Estimated volume was a listless 34,000 contracts.

[Watson]

Copper closes up on the LME
Source: AAP
Date: 2004-Aug-16 06:53 AM

Copper rose by 2.92 per cent on Friday on weak U.S. economic data and a firmer euro, to close strongly on the London Metal Exchange (LME), traders said.

Copper firmed to $2,853 a tonne by the close on Friday, from $2,772 on Thursday.

Traders said a series of buy stops had been triggered which drove prices higher


The market was now aiming at technical resistance $2,860/65.

Traders said they expected strong physical premiums and three month prices in the fourth quarter of the year as exchange stocks and inventory held by China's Strategic Reserve Bureau, dwindled.

Traders said the SRB likely held between just 50,000-80,000 tonnes of metal, down from a peak estimated around 300,000 tonnes.

ALUMINIUM

Aluminium firmed to $1,728 from $1,715.

Stocks fell below 800,000 tonnes on Friday for the first time since December 2001.

Nickel was up $150 at $13,350, while tin was also firmly entrenched in ranges closing $40 higher at $8,840/50 higher.

Lead fell to $870 from $887, while zinc broke though $1,000 to close at $1,002, versus $987 at Thursday's kerb.

NYMEX

NYMEX crude oil futures ended above $46 a barrel for the first time ever on Friday, after an explosion and fire at a large BP refinery in Whiting, Indiana, fuelled more worries in a market already on edge over possible supply disruptions in Iraq and Venezuela, traders said.

They cited war-torn Iraq and Sundays presidential recall referendum in OPEC member Venezuela.

NYMEX September crude settled at $46.58, gaining $1.08 or 2.4 per cent, after rocketing to a new high of $46.65. It posted the days low at $45.60. Some trades at $46.66 were cancelled in the last minute of trading. The new high marks the loftiest level in the 21 years oil futures have traded on the exchange. The fresh gains marked the markets 10th record high in 11 open-outcry trading sessions.

[Watson]

Copper prices decline in London
Source: AAP
Date: 2004-Aug-17 07:12 AM

Copper prices, which hit four-month highs at midday on the London Metal Exchange (LME), reversed direction in Monday afternoon trade to end lower.

Traders said the decline was triggered by overhead technical resistance stalling the earlier advance, as well as a contraction in the cash/threes backwardation from midsession levels of $100.

The cash/threes backwardation was indicated at $68/73 at the close, while final three months trade was at $2,830 a tonne, down $23 from Friday's kerb close.


Major funds were more focused on energy, where prices are booming, and bond markets, where U.S. rate perceptions are the driver, he said. Earlier, prices drove up to a peak of $2,885/2,890 on short covering CTA and industry buying, which triggered buy-stops through $2,865.

But levels around $2,890 proved difficult to erode, and the market may need to retrace further before trying to challenge $2,900, traders said.

Other metals were mixed, although tin was firmer after a breach of $9,000 triggered covering and buy-stops. It concluded at $9,175, up $375 from Friday and a two-month high.

Nickel rose $200 to $13,550/565, but was quiet, while aluminium gained just $1 at $1,729.

Lead and zinc were unchanged at $870 and $1,002 respectively.

NYMEX crude oil futures ended lower on Monday after Venezuelan President Hugo Chavez survived a recall vote and traders expected stability in the flow of supplies for now from the fifth-largest oil exporter, analysts said.

September crude settled 53 cents lower at $46.05 a barrel, after setting an all-time high of $46.91 in overnight electronic trade. In the open-outcry trading, it traded between $45.95 and $46.80. Technical support is still seen around $46, with resistance in the rising channel at $47.40.

In London, the expiring September Brent crude settled 21 cents down at $43.67 a barrel, after earlier setting a record of $44.11. October crude settled 22 cents lower at $42.69.

News that a Shiite militia fighting US forces had set fire to a single oil well in southern Iraq produced a brief move to the upside in early trade.

Technical analysts expected NYMEX crude futures to slip after Fridays sharp rally, but saw it only as a bull market correction within a long-term upward trend. They said there were few signs of a top forming and some predicted a push toward the high $40s this week, and possibly to $50 a barrel.

Yukos chairman Viktor Gerashchenko told Reuters that the company would be allowed to produce and sell oil until the end of September and would try to avoid bankruptcy for as long as possible.

September gasoline was hammered, settling 4.23 cents weaker at $1.3045 a gallon, after setting a fresh contract high of $1.3505 in overnight trading. Its dayside range stood at $1.30 to $1.34. Technical analysts charted support at $1.30, with resistance at $1.365.

[Watson]

Base metals fall away
Source: AAP
Date: 2004-Aug-18 07:21 AM

Base metals fell away during London Metal Exchange (LME) floor trading, ending the open-outcry session mostly lower amid a rebound in the dollar and softening spreads, traders said.

Copper, which touched $2,860 at one stage, backtracked to end the afternoon at $2,818, down $12 a tonne from Monday's kerb.

Traders said the close was technically negative, bringing prices back towards the floor of a $2,800/2,820 to $2,860/2,890 range.

The cash/threes spread backwardation eased to $45/50 from $72 on Monday as the previous day's tight August date fell off the structure.

However, nearby tightness remained in focus, with activity intense during the early rings, when TOM/Next business (tomorrow/next day), or belated trading against Monday's "third Wednesday" prompt date, took place.

This key rate flared out at times, with business between $7 and $9 backwardation, before last trade at $3, with LME officials monitoring the session.

But some of the steam was taken out of the market on the pre-market, when the dominant long position holder was said to be making metal available at level/$1 backwardation at times.

Elsewhere, aluminium stalled around the $1,740 resistance level, steadily declining to close at $1,718, down $11.

Lead backtracked as the spread narrowed to $40/42 backwardation from $50. Last three months business was at $849, down $21.

Zinc was unable to cling on to the $1,000 level, and retreated to $989, a $12 loss.

Tin was $125 lower at $9,050, but was consolidating following Monday's run-up to two-month highs.

Nickel was the exception to the softer trend, and maintained recent steady upward momentum to close at $13,650, up $100.

NYMEX crude oil futures ended near a new record on Tuesday as data showing inflation in check gave traders hope that high oil prices may not yet be affecting economic growth and as inventory data due on Wednesday were expected to show a draw in crude stocks, analysts said.

The price rise followed an early slide after fears of a near-term supply disruption eased following a referendum victory for Venezuelan President Hugo Chavez and assurances that Russia's troubled YUKOS oil company will export crude at least through September.

NYMEX September crude settled up 70 cents at $46.75 a barrel, after earlier hitting $46.95, the highest level crude futures have reached in the 21 years they have traded on the exchange. The previous record was $46.91 set overnight on Monday

[Watson]

Metals trade softer
Source: AAP
Date: 2004-Aug-23 07:00 AM

London Metal Exchange (LME) metal prices ended ring trading mostly softer on Friday as investors shaved values in light profit-taking, traders said.

Trader attention remained focused on stock levels following a 30,000 tonne rise on Wednesday. Investors had expected further deliveries on Thursday but that failed to materialise.

However, expectations of a further rise in LME stocks in the near term persist, which left the market nervous and encouraged scaled-up selling, traders said.

Three-months copper was last traded at $2,765 a tonne, down $30 from Thursday's kerb close.

Aluminium was last shown at $1,733.50, just 50 cents down.

The market was underpinned by firm fundamentals, exacerbated by a continuing labour dispute at an Alcoa smelter in Canada.

Zinc lost $19 to $973 and lead eased by $9 to $853.

Nickel fell $600 to $13,650 because of heavy profit-taking after first dropping below initial support at $13,900.

"A rather disappointing close to the week, though the widening backwardation (last at $300) should help give support," LME broker Triland Metals said in a daily note.

However, tin bucked the overall trend, ending at $9,125, up $125 on firm fundamentals and physical tightness.

NYMEX

Crude oil futures slumped more than $1 in late trading, ending below $48 a barrel, on profit-taking after the push to $50 fizzled and gasoline slumped, prompting further selling, traders said.

In the early going, September crude hit another record at $49.40 a barrel, the highest level since oil futures started trading on the New York Mercantile Exchange 21 years ago, amid increased violence in Iraq, which had stoked supply disruption fears for days. Throughout the session, the market was riveted on Iraq, amid conflicting reports that control over a shrine in the embattled city of Najaf had been wrested from a rebel militia by the Iraqi police.

The September crude contract expired at the close and settled at $47.86, down 84 cents, or 1.7 per cent. NYMEX crude has set a new record in 15 of the last 16 sessions.

From the end of June, NYMEX prompt crude had risen nearly $11, or 29 per cent.

[Watson]

Investors quit copper
Source: AAP
Date: 2004-Aug-24 07:07 AM

Jittery speculators bailed out of copper on Monday in illiquid trade, with a drop below $2,740 triggering technical selling that shoved the red metal to its lowest in two weeks, traders and analysts said.

They said nervous conditions prevailed due to uncertainty over copper stocks, after a near 40 per cent increase in inventories last week hacked nearly five per cent off prices in just two days.

Inventories fell 450 tonnes on Monday, sparking a short-lived relief rally, but Fewings expected traders to remain wary of further increases during the week



Three months prices concluded the evening kerb near the bottom of the day's range at $2,713 a tonne, down $52 from Friday's kerb. The day's low point was $2,707.50 - its lowest since August 9.

Aluminium was mostly subdued within familiar ranges, giving back $24.50 to $1,709.

Traders reported producer selling around the $1,740 level, but said it was finding good support on the downside due to various disruptions and strikes.

Zinc drifted down to $968, down $5, although the market was keeping an eye on possible labour problems at Ireland's Tara mine. Lead was down $7 at $846.

Union leaders at Europe's biggest zinc mine said on Sunday they were holding talks with management in a row over the use of contract workers, but played down newspaper reports they were set to strike.

Nickel extended Friday's falls amid light liquidation, slipping $275 to $13,375, with a 684-tonne stock rise also weighing on the market. Tin eased to $8,950 from a previous $9,125.


NYMEX

Crude oil futures ended sharply lower Monday, after Iraq reopened two pipelines and increased its oil exports while funds continued to pocket profits from the recent bull run toward $50 per barrel, analysts said.

In volatile trading on the New York Mercantile Exchange, October crude settled at $46.05, down 67 cents, after moving between $46.01 and $47.10. The range was well within technical support seen at $45.53 and resistance at $48. On Friday, September crude expired down more than $1 after a rally to $50 fizzled.

In London, Brent crude settled down 51 cents at $43.03 a barrel.

Technical analysts expected crude futures to consolidate on Monday, but still saw bulls targeting $50 this week. "Fridays late pullback may suggest a period of consolidation is now necessary before the next move higher," said Kevin Norrish of Barclays Capi

[Watson]

LME Copper prices recover
Source: AAP
Date: 2004-Aug-25 07:25 AM

Copper prices held earlier advances in Tuesday's ring sessions on the London Metal Exchange (LME), but overall business was slow and gains faltered.

Traders said copper was the main focus, which recovered from Monday's two-week lows after another small loss in LME warehouse stocks.

Copper stocks fell 350 tonnes, the latest in a series of small withdrawals recently, which stifled worries about possible big rises after last week's near 30,000-tonne jump.


Also, LME data showed that 3,000 tonnes of copper in Singapore was registered as cancelled warrants - metal earmarked for removal.

Copper traded last in the rings at $2,735 a tonne, up $22 from Monday's kerb. The cash/threes spread was at $55 backwardation, while cash/one day was at $1 backwardation.

Elsewhere, gains were notched up in line with copper, but business was routine.

Aluminium rose $2 to $1,711, aided by a 3,625-tonne inventory fall, the latest in a series of declines.

Overnight, efforts to end a seven-week strike at Alcoa Inc.'s smelter at Becancour, Quebec, were deadlocked after a government appointed conciliator refused to call further talks because the company and the union were too far apart.

Alcoa said it would continue running the 400,000-tonne capacity smelter with only one of three potlines open.

Nickel rose $75 to $13,450, helped by stocks falling 78 tonnes, while tin shed $10 to $8,940.

Lead advanced $4 to $850, while zinc added $7 to $975.

Crude oil futures ended sharply lower Tuesday on the NYMEX, as Iraq increased its exports, with prices falling for the third straight session as traders booked profits on the recent bull run, analysts said.

Several key technical support levels were breached, pressuring October crude on the New York Mercantile Exchange to drop as low as $44.75 a barrel, down $1.30, marking the lowest for the contract in nine sessions. October crude later settled at $45.21, down 84 cents, or 1.7 per cent, accumulating $2.43 in losses since Friday.

On Friday, the September contract expired after missing the $50 per barrel mark, peaking at $49.40 to mark the loftiest level in 21 years of oil futures trading on the NYMEX. On the same day, October crude posted a new contract high at $48.37.

In London, Brent crude fell sharply along with NYMEX crude and settled 71 cents, or 1.6 per cent, lower at $42.32 a barrel

[Watson]

Copper loses its shine
Source: AAP
Date: 2004-Aug-26 07:39 AM

Base metals ended a mundane session mostly weaker on Wednesday at the London Metal Exchange (LME), with mixed signals on the US economy leaving the market in search of direction, traders said.

Copper spent the day in negative territory, casting a pall across the complex. It briefly perked up after better-than-expected US economic data and managed a close above $2,700.

Copper fell to its lowest price in a month at $2,684 a tonne, but managed to pare some losses just before the close.


Three months finished the evening kerb at $2,706 a tonne, losing $29 compared with Tuesday's close.

Analysts said the red metal looked weak technically and some traders were looking for it to test $2,680.

Aluminium also continued to slide, but has so far managed to hold above support at $1,680. The metal finished Wednesday's kerb down $19 at $1,692.

Nickel finished the day flat at $13,450, while tin was untraded at the kerb and last indicated $20 weaker at $8,920/50.

Lead dropped $5 to $845 and zinc, the only gainer on the day, rose $2 to $977.

Crude oil futures on the NYMEX tumbled nearly $2 a barrel Wednesday as losses mounted for the fourth day in a row, triggered by a selloff in gasoline futures, traders said.

Prompt gasoline on the New York Mercantile Exchange slumped almost 7 cents, dropping to its lowest level in more than seven weeks.

Gasoline stocks were unchanged last week, the US government reported, disappointing traders who had expected a hefty drawdown with the summer driving season demand seen still peaking during the Labor Day holiday weekend Sept. 4-6.

October crude settled at $43.47 a barrel, losing $1.74, or 3.8 per cent, after dropping to an intraday low of $43.22, the lowest since Aug. 5, when prices fell to $42.62. Technical support gave way starting at $44.75, Tuesdays low. Resistance was charted at $46.

The failure to hold above Tuesdays $44.75 low appears to confirm that a short-term top at $49.40, the highest price for NYMEX crude futures, which was touched on Friday, had been set, and that now signals deeper losses, analysts said.

In London, October Brent crude fell with NYMEX crude, settling $1.64, or 3.9 per cent, lower at $40.68 a barrel.

September gasoline settled down 6.57 cents at $1.1946 a gallon, after sliding to an intraday low of $1.19, the lowest since spot gasolines $1.1540 low on July 1. Support was breached at $1.20 and analysts see the risk of the contract going down to the spot low of $1.1540.

[Watson]

Peru issue bolsters Copper
Source: AAP
Date: 2004-Aug-27 07:13 AM

Copper prices ended higher in Thursday London Metal Exchange (LME) trading, bolstered by talk of potential labour problems in Peru and by another modest inventory decline.

Analysts said copper miners were seeking higher wages amid firm prices. Despite recent retracements, the market was still just $300 under February's 8-1/2 year highs.

Copper prices steadily moved up after a much-vaunted inventory increase failed to occur, closing the official rings at $2,735 a tonne, up $29 from Wednesday's kerb.


LME copper warehouse inventories fell by 525 tonnes - another in a run of small declines that have followed the near 30,000-tonne jump in Asia that took place last week.

However, talk had persisted of another big rise of some 20,000 tonnes, introducing caution to the market.

But although the cash/threes spread remained tight at $60 backwardation, the daily premiums were less intense - around $1 versus $7 a week ago.

Aluminium rose to $1,700, up $8 and supported by another inventory drop of 3,850 tonnes.

Nickel dropped sharply, triggering sell-stops below $13,000 and ending off $700, or five per cent, at $12,700.

LME broker Triland Metals said the market was weighed by heavy fund and technical selling amid thin conditions, and expected erratic price movements to continue.

Tin was at $8,750, down $170.

Lead and zinc were quiet and shrugged off news that union leaders at Tara in Ireland, Europe's biggest zinc mine, were confident of reaching a deal with managers in a dispute over foreign contract workers.

Lead rose $10 to 855, assisted by the cash/threes backwardation widening $5 to $60, while zinc was $6 higher at $983.

Crude oil futures on the NYMEX fell for the fifth consecutive day on Thursday as traders hoped that a tentative peace deal in Iraq would decrease the chance of supply disruption, analysts said.

October crude on the New York Mercantile Exchange settled 37 cents lower at $43.10 a barrel, after falling as low as $42.50.

In London, October Brent crude settled down 35 cents at $40.33 a barrel. Iraq's most revered Shiite religious authority agreed to a "very positive" deal with rebel cleric Moqtada al-Sadr to end a three-week uprising by Sadr's militiamen in Najaf, police said.

[Watson]

Copper remains firm
Source: AAP
Date: 2004-Aug-30 07:02 AM

LONDON METAL EXCHANGE

Copper advanced to the close of Friday's open-outcry sessions on the London Metal Exchange (LME), while other metals were mixed.

Traders said business was largely routine apart from spells of activity in copper, which rallied towards $2,790 a tonne after the release of US economic data, before dollar strength encouraged profit-taking.

The LME will close on Monday for a public holiday, re-opening on Tuesday.

Copper was firm after a sluggish start, with the clearance of $2,745/2,750 triggering buy-stops, and prices hit $2,765 at the end of the rings, up $30 from Thursday.

Fundamentally the market has been boosted by Thursday's news that workers at Southern Peru Copper Corp will strike from August 31 unless the miner raises their pay and rejects a merger proposed with its parent company's mining unit.

Southern Peru is majority-owned by Grupo Mexico, the world's third-largest copper producer.

Aluminium shrugged off stocks rising 325 tonnes due to material landed in Sweden, with the increase halting a long run of declines.

Last ring trade was at $1,701, up $1.

Nickel was nervous after Thursday's near-$1,000 fund sell-off, settling at $12,675, down $25.

Lead was $2 higher at $857, but zinc dropped $9 to $974/975.

Tin was $75 higher at $8,825/850.

NYMEX

Crude oil futures ended slightly higher Friday, stemming a five-day slippage, on light short-covering and lingering worries about disruptions to Iraq's oil supply.

October crude on the New York Mercantile Exchange settled 8 cents firmer at $43.18 a barrel, after a quiet session. The contract moved between $42.75 and $43.45, within technical support charted at $42.50 and resistance at $44. The small gain followed losses of more than $6 in the previous five sessions.

[Watson]

Base metals end on mixed note
Source: AAP
Date: 2004-Sep-01 07:07 AM

Base metals ended on a mixed note on the London Metal Exchange, with late sales eating into some gains, although copper still finished firm on confirmation of a strike at Peruvian facilities, traders said.

Indefinite strike action at two Peruvian mines, which produce around 350,000 tonnes of copper-in-concentrate per year maintained the firmer trend seen in copper.

Copper prices absorbed a brief mid-afternoon setback and closed the open-outcry session at $2,782 a tonne, up $17 from last Friday's kerb.

Traders said copper stocks could rise with talk that 5,000 tonnes of South Korean copper was expected in LME warehouses in Singapore this week. Metal may also be warranted to take advantage of tight early-September prompt dates.

In other metals tin shrugged off a 565-tonne stock increase and advanced to finish at $8,925, up $175.

On Monday, Australian gold, tantalum and tin producer Sons of Gwalia moved into voluntary administration after discovering its mines might not have enough gold left to meet its gold hedge commitments and finance its foreign exchange exposure.

Gwalia is one of Australia's two tin miners, which together produce around 2,000 tonnes of tin in concentrate per year.

The other company, Marlborough Resources N.L, is already under administration.

Nickel held up fairly well for most of the session after a 1,032-tonne stock increase, but eventually slid back to close at $12,275, down $400.

More nickel was delivered into Liverpool, as well as into Rotterdam. Metal is being attracted by tight nearby dates, with cash/one day trading at $15 backwardation, traders said.

Aluminium slipped below $1,700 to $1,697, down $4, lead was $1 higher at $858, while zinc eased $9 to $974.

NYMEX

NYMEX crude oil futures ended lower on Tuesday as the recovery in Iraqi exports fuelled more fund-led selling, wiping out midsessions short-covering gains.

October crude oil settled 16 cents down at $42.12 a barrel, after rising at midday to $42.35. In the morning it dropped to the session low of $41.45 which brought losses in seven of the past eight sessions to nearly $8. Technical support was charted at $40.95 with resistance at $43.50.

Throughout most of the day, hedge funds continued to take profits from the record peak of $49.40 scaled on Aug. 20.

[Watson]

London metals ended quietly mixed
Source: AAP
Date: 2004-Sep-02 07:16 AM

London Metal Exchange (LME) metals ended quietly mixed in routine trading on Wednesday with prices still held in ranges, traders said.

Options declarations passed uneventfully and key economic data released in the United States, while coming in below analyst expectations, had only a small impact on the dollar.

Copper closed the kerb at $2,774, down $8 from Tuesday's kerb close.
A pay strike by 1,500 workers at Southern Peru Copper Corp. entered a second day on Wednesday with management and union negotiators deadlocked and no talks scheduled, the union said.

Traders said aluminium had steady consumer support, while nickel lifted on technical buying. Aluminium ended at $1,700, up $3, while nickel was at $12,725, up $450.

Tin ended at $9,165, up $240, while lead dropped $27 to $831.

Zinc was at $974, unchanged.

NYMEX crude oil futures climbed back to $44, ending Wednesdays hectic session with gains of nearly $2 as more buy stops were triggered in the afternoon following this mornings U.S. government data showing an unexpectedly large drop in crude inventories last week, analysts said.

NYMEX crude for October delivery settled up $1.88, or 4.5 per cent, at $44 a barrel, after scaling a session peak of $44.40. The days rebound has cut down by about 20 per cent the nearly $8 slide from Aug. 20, when prices rose to a record $49.40. At the time, people were speculating that crude could hit $50. October crude traded early as low as $42.35, with support charted at $41.40.

The days big gains were initially spurred by news that a northern Iraqi oil pipeline was set on fire, again stoking concerns about stability of supply from Iraq, which had just restored exports to normal levels on Wednesday. Then, more buying developed after the U.S. Energy Information Administration said U.S. crude stocks fell 4.2 million barrels in the week to Aug. 27 to 287.1 million barrels amid a slowdown in imports. Analysts had expected a mild increase on expectations that imports would rise.

In London, October Brent crude rose with NYMEX crude and settled at $41.47 a barrel, gaining $1.86, or 4.7 per cent. The EIA, in a review of its data, noted that there will be continued upward pressure on oil prices as global demands remains strong while world crude oil production is already running at 99 per cent of estimated capacity.

NYMEX October gasoline settled at $1.1890 a gallon, gaining 5.05 cents, or 4.4 per cent, just below its session peak of $1.20, where resistance was charted.

October heating oil settled up 5.95 cents, or 5.3 per cent, at $1.1825 a gallon, after rising to a session high of $1.19. It traded as low as $1.1330.

COMEX gold succumbed to profit taking Wednesday, but anxiety about political unrest, both foreign and domestic, held it within reach of recent four-month highs and trading was kept to a minimum before important U.S. employment figures on Friday.

Gold shrugged off overnight news that an armed gang had taken hundreds of Russian children hostage, one day after rising on safe-haven buying when a suicide bombing killed nine in Moscow and a double bus bombing in Israel killed 16.

[Watson]

Commodities lower
Source: AAP
Date: 2004-Sep-03 07:40 AM

Speculators pushed copper to its lowest in a week during Thursday's open-outcry sessions on the London Metal Exchange (LME), with further choppy trade expected ahead of key US data, traders said.

Copper barely moved during the first half of the day, but was subsequently whacked down as low as $US2,713 as sell stops were triggered, only to partially recover later in the session.

Copper stocks declined by 150 tonnes on Thursday, having risen a widely expected 6,375 tonnes on the previous day. Three months finished the day at $US2,730 a tonne, a loss of $US44.


Nickel continued to backtrack as nearby tightness softened. The metal finished the evening kerb $US275 weaker at $US12,450.

Lead was the exception to the negative trend, adding on $US9 to $US840, although this was a partial correction after Wednesday's option-related sell-off.

Elsewhere, aluminium dropped back below $US1,700 to end $US13 at $US1,687. Tin dropped $US265 to $US8,900, while zinc settled at $US959 versus its previous $US974.


NYMEX

Crude oil futures ended with pared gains Thursday after traders pocketed profits following a rally to above $45 on supply worries after a pipeline bombing in Iraq and as a Moscow court froze more funds from beleaguered Russian oil company YUKOS.

NYMEX crude oil for October delivery settled up just six cents at $US44.06 a barrel, after earlier shooting up $US1.37 to a session high of $US45.37. The gains of more than three per cent wilted in the face of a flurry of profit-taking in late trade.

October crude jumped $US1.88 on Wednesday after US government data unexpectedly showed that crude stocks fell last week. That broke up a losing streak that had lopped off almost $US8 since crude futures hit a record $US49.40 on Aug. 20.

In London, October Brent crude settled US10 cents up at $US41.57 a barrel, also slashing session gains surging as high as $US43.04.

Iraq's wobbly export capabilities in the face of sabotage and YUKOS problems with tax collectors, both of which have jolted oil markets in recent weeks, lifted oil prices.

Analysts said the market could gather further positive momentum into the weekend, with US and London energy markets closing early on Friday and the US markets closed on Monday for the Labor Day holiday.

NYMEX October gasoline settled at $US1.1932 a gallon, gaining 0.42 US cents, after rising to a session peak of $US1.2350 as it broke resistance at $US1.20. The days low was $US1.19.

[Watson]

Base metals remain slack
Source: SYDNEY AAP
Date: 2004-Sep-07 07:04 AM

Base metals business remained slack during Monday afternoon open-outcry trade on the London Metal Exchange (LME), with interest severely curtailed due to the U.S. Labor Day holiday, traders said.

Contracts were mixed by the close, although some of the losses sustained at the end of last week were clawed back.

The market may trade sideways in the short term, although analysts say that the copper and aluminium markets remained well supported by their respective fundamental situations, despite a poor performance on the technical charts.


Dealers said some trade buyers were making the most of lower prices. Many feel that prices will be on the rise again over the coming months as restocking picks up pace after the summer holiday lull.

Nickel touched a fresh 12-week low at $12,050 a tonne in early trade, but then bounced to close at $12,225, up $25.

Technical analysts said chart indicators still pointed to the $11,800 support level being tested in due course, with a close above $12,800 needed to relieve immediate pressure.

In a special report - The Prospects for Nickel out to 2010 - analysts GFMS Metals Consulting said that over the next few years production will continue to struggle to match consumption.

GFMS forecast an average annual price of $13,300 this year. which should be the peak in this cycle. Earlier this year, nickel hit 15-year highs of $17,720. Elsewhere, copper made modest upside headway after an initial advance, ending the kerb at $2,723 a tonne, up from Friday's kerb close of $2,702.

Aluminium did little after early gains, closing the session at $1,661, up $7. Lead gained $13 to $853 a tonne, while zinc was unchanged at $962.

Tin fell $115 to $8,710.

NYMEX & COMEX both closed due to US Labour Day holiday

[Watson]

Metals mostly lower
Source: AAP
Date: 2004-Sep-09 07:11 AM

London Metal Exchange metals closed kerb trading mostly lower on Wednesday on profit-taking, while lead lifted on light consumer buying, traders said.

Copper was again erratic on Wednesday from the day before, dropping initially towards $2,715 a tonne on a firmer dollar, but then rallied slightly as the U.S. currency weakened.

Prices fell back into negative territory during the morning rings, finishing the second session down $11 at $2,743 a tonne, but well off an Asian peak of $2,772.50.


Aluminium fell in line with copper, weakening to $1,672 from $1,676, while nickel dropped $225 to $12,150.

Tin dropped $100 to $8,750.

Three-months lead lifted by $7 to $875 while zinc shed $2 at $977.

Traders expected lead to trade in a $839-880 range and saw zinc moving in a $960-990 band.



NYMEX

Crude oil futures ended sharply lower Wednesday as funds took profits on an early rise fuelled by concerns that Hurricane Ivan could shut down oil and gas production in the Gulf of Mexico.

News that Iraq is pumping about 200,000 barrels per day (bpd) through a secondary pipeline from the Kirkuk oilfields north through Turkey sparked selling around midday, analysts said.

Also, OPEC's president said the market was oversupplied and prices should be closer to $30 a barrel. This likewise undercut prices, according to analysts.

October crude settled 54 cents lower at $42.77 a barrel on the New York Mercantile Exchange. It traded as high as $43.70 and posted the day's low at $42.40.

Technical analysts expected crude oil futures to remain bearish and attempt to test support below $42.

[Watson]

COPPER LOOSES ITS SHINE
Source: AAP
Date: 2004-Sep-14 07:22 AM

Base metals clawed away from midsession lows during Monday open-outcry trading on the London Metal Exchange (LME), but trade was routine after modest "third Wednesday" cash pricing earlier, traders said.

Contracts ended the session mixed, with strong performances seen from lead and nickel, but other metals lacked follow-through to last Friday's strong closes.

Traders see the market continuing to gravitate towards the top end of current ranges on expected dollar weakness, with a stream of U.S. data due later this week, including the current account, net capital inflows, industrial production, retail sales, consumer sentiment and consumer prices.


Copper remained softer after slipping during the ring sessions, amid cash pricing and offers. Last trade was at $2,786 a tonne, down $9 from Friday's kerb.

Earlier news workers at Southern Peru Copper Corp., one of the world's top copper miners, ended a 13-day pay strike on Monday had little impact.

Union leaders said they ended their stoppage before they were forced to by law on September 18, but vowed to strike again in 30 days if the company did not grant them a pay rise.

Lead was boosted by speculative buying for the tight October date early, as well as similar activity towards the close, finishing at $910, up $21.

In the spreads, tightness was illustrated by TOM/next trading at $1 backwardation and cash/one day at $3 backwardation.

Nickel rose $250 to $12,425, similarly aided by tight prompt dates.

Cash/one week was at $15/20 backwardation, with cash/two days at a $10/15 backwardation. The cash/threes spread traded at $150 backwardation earlier.

Warehouse stocks were up another 228 tonnes after more metal was warranted in Liverpool to take advantage of current spot tightness.

Elsewhere, aluminium held in a tight range, closing at $1,700, down $5. Zinc rose $2 to $984, while tin climbed to $9,050, up $200.

NYMEX

Crude futures ended more than $1 higher on Monday on fears that powerful Hurricane Ivan could cause serious production disruptions in the Gulf of Mexico, where energy companies began evacuating hundreds of workers to get them out of harms way before ferocious Hurricane Ivan hits.

Some production shut-ins have also been undertaken, and traders were anticipating similar moves later as Ivan gets closer to the Gulf, home to about a quarter of U.S. oil and natural gas production

[Watson]

Base metals whipsawed in afternoon trade
Source: AAP
Date: 2004-Sep-15 07:29 AM

Base metals whipsawed in Tuesday afternoon open-outcry trading on the London Metal Exchange (LME), with range-bound markets ending mixed.

Traders said short-term trends remained highly uncertain, not only in metals, but also in other financial instruments, so movements would be erratic.

Lead was hit hard on the kerb, tumbling back to end $27 lower at $883 a tonne.


Also, lending against the cash/threes spread - $44 traded against $50 overnight - suggested nearby tightness might be on the wane.

Cash/one day has held at $2/3 backwardation for a few days around the September prompt date, which might be attracting metal into warehouses.

Some traders said significant tonnages have been unloaded into Singapore in recent days, and some of that metal might be warranted and show up in LME warehouses soon.

Copper, which was unable to clear $2,790/2,800 early on, whipped back to test the floor of the range, nearing $2,750 at one stage before closing at $2,769, down $17 from Monday's kerb.

In other metals, tin fell $100 to $8,950, but the market was enlivened by earlier TOM/Next business (tomorrow/next day) or belated trading against Monday's prompt date.

TOM/Next spiked out to a high of $40 backwardation - LME data shows that there was one large long holder of futures for the September date in the 20 to 30 per cent band.

Aluminium held steady at the close, gaining $1 at $1,701, with support seen from news Alcoa Inc plans to declare force majeure on deliveries from its Jamalco alumina plant after Hurricane Ivan damaged the port serving the operation.

Nickel was at $12,600, up $175, while zinc was at $992, up $8.


NYMEX

NYMEX crude oil futures rose for the second day running on Tuesday as oil and natural gas companies shut production and removed workers in the Gulf of Mexico, home to 25 per cent of U.S. energy output, as a precaution against powerful Hurricane Ivan.

In the U.S. Gulf Coast, more than a million barrels per day of refinery output in Louisiana and Mississippi have already been shut as of Tuesday as refineries battened down ahead of the ferocious storms landfall, the U.S. Department of Interiors Mineral Management Service said.

[Watson]

Copper recoups losses
Source: AAP
Date: 2004-Sep-16 07:11 AM

London Metal Exchange (LME) copper recouped earlier losses to finish Wednesday's open outcry trade unchanged, getting little direction from a mixed set of US economic data.

Analysts said they expected the red metal to remain rangebound, with little interest seen from consumers as yet, while low liquidity levels kept fund players at bay.

Traders and analysts noted, however, that open interest remained relatively low across the complex, which meant there was scope for renewed fund buying if they re-entered the market.


Three-months copper finished the evening kerb flat at $2,769 a tonne, having moved off an earlier low of $2,756.50.

Aluminium put in a solid performance throughout the day, bolstered by supply concerns. Three months settled $7 firmer at $1,708.

Chinese alumina customers are likely to face delays in alumina shipments from Jamaica after Hurricane Ivan caused damage to all major producers in the area (Alcoa, Norsk Hydro and Glencore).

Nickel rose $550 to $13,150, while tin finished weaker at $8,850/8,900 from $8,950. Lead and zinc gave back $2 to end at $881 and $990 respectively.


NYMEX

Crude oil futures fell almost $1 on Wednesday after the U.S. Energy Administration said the effect of Hurricane Ivan on supplies could be short-lived, unless it causes significant damage to Gulf of Mexico drilling platforms, port facilities and refineries.

Analysts also said that, with the closure of many refineries to minimise flooding and wind damage from Ivan, less refinery feedstock would be needed in the coming days and traders factored this in, causing a tumble in oil futures prices.

The reversal wiped out early gains spurred by a larger-than-expected drawdown in crude stocks last week and fears of supply disruption as Ivan neared landfall on the U.S. coast of the Gulf of Mexico.

October crude settled down 81 cents, or 1.8 per cent, at $43.58 a barrel on the New York Mercantile Exchange. In late trade it fell as much as 99 cents to the session low of $43.40. It peaked in the morning at $45.30, after breaking resistance at $45. Support is charted at $42.50.

The losses stemmed a weather-related rally Monday and Tuesday.

In London, Brent crude settled 12 cents higher at $41.85 a barrel on the International Petroleum Exchange, after soaring to $42.30 earlier

[Watson]

Crude oil futures surge
Source: AAP
Date: 2004-Sep-20 07:25 AM

London Metal Exchange

London Metal Exchange (LME) metals eased by Friday's kerb close as profit-taking in thin trading conditions weighed on prices, traders said.

However, copper picked up from earlier lows in the last minutes of kerb trading.

Other traders cited unsubstantiated reports that a ship carrying 17,000 tonnes of copper had sunk in the Caribbean, as supporting prices.

Copper ended the day at $2,810 a tonne, down $13 from Thursday's kerb close, having diced with support at $2,800.

Traders said that one broker bid the price up in the last seconds to $2,815/17.

Aluminium drifted back $3 to $1,710.

News that alumina shipments from Jamaica could be severely strained for months because of Hurricane Ivan provided some support.

Lead fell $20 to $868. Traders said that despite falling LME inventories rumours of large off-warrant stocks in Asia persisted. Zinc fell $19 to $969.

Tin, however, rose by $90 to $9,075.

NYMEX

Crude oil futures surged almost $2 a barrel on Friday, ending at their highest level in more than three weeks, amid worries over the impact of Hurricane Ivan on Gulf of Mexico oil production and that approaching storms might veer into area and give it another hit, traders said.

October crude on the New York Mercantile Exchange settled up $1.71, or 3.9 per cent, at $45.59 a barrel. It broke resistance successively at $45, $45.30 and $45.37 before hitting the intraday high of $45.80, the highest prompt crude price since Aug. 24.

The price spike was likely due to the "speculative element of the market" that is "taking advantage of bullish news," said Marshall Steeves, analyst at Refco Group.

Ahead of the October contracts expiration on Tuesday, the spot chart highs of $46.13 and $47.22, hit in the third week of August, are the next barriers before $48.37, the contract high hit on Aug. 20. That was the same day prices surged to the record $49.40, which is the highest since NYMEX started trading oil futures in 1983.

[Watson]

Demand pushes copper to month-high
Source: AAP
Date: 2004-Nov-15 07:39 AM

London Metal Exchange copper closed above $3,000 a tonne by Friday's kerb, its highest in a month, as supply tightness encouraged fund buying and short covering against a backdrop of dollar weakness, traders said.

Copper rose to $3,017 a tonne from Thursday's kerb close of $2,988.

Aluminium was at $1,813.50, up $27.50, while nickel was at $14,700, up $700.


Zinc was at $1,116, up $27, while lead was at $954, up $14. Tin was $20 higher around $9,150.

COMEX

In New York gold futures settled at a 16-year high but still shy of $440-an-ounce resistance on Friday, lifted by the dollar's grind lower as dealers ignored the morning's positive US economic data.

Silver was propelled to a seven-month peak and platinum hit 6-1/2-week highs on fund buying and Asian physical interest.

December gold on the New York Mercantile Exchange's COMEX division rose $2.90 to end at $438.30 an ounce, after zigzagging in a range from $435 to a contract high at $439.50 - the loftiest level for futures since July 1988.

Final estimated volume was 57,000 contracts.

Spot gold was last quoted at $437.70/8.20, compared to an earlier 16-year high at $438.80 in London and Thursday's New York close at $434.35/5.10. Friday's London afternoon fix was at $436.05.

December silver futures shot up 14.5 cents to $7.622 an ounce, within a range of $7.435 to $7.67 - its highest since April. Spot was at $7.57/60 versus the last close at $7.43/46. The fix in London was $7.4850.

In platinum, NYMEX January settled up $19.60 at $874.20 an ounce, its strongest performance since Sept. 29. Spot platinum went up to $871.50/876.50.

"There was lots of buying, by funds and by commission houses, after we broke above $858," said a New York floor broker.

Illiquid December palladium rose $5 to $221.15 an ounce. Spot palladium rose to $215.50/221.50.

NYMEX