Commodities mostly sank this week, with many hit by sliding equities, demand concerns, ample supplies, geopolitical worries in the Middle East and Ukraine, as well as Argentina’s default, dealers said.
However, star performers coffee and cocoa forged significant peaks on frenzied speculative buying interest, they added.
Heading into the weekend, traders digested Friday’s tepid non-farm payrolls data in the US, the world’s largest economy and a major consumer of most raw materials.
OIL: Crude oil prices in New York tumbled to their lowest level since early February, with the market awash with supplies, dealers said.
New York’s light sweet crude on Friday sank to US$97.09 a barrel and London’s Brent oil hit the lowest since the middle of last month.
“Crude oil prices have suffered as of late due to ample supply and weak demand fundamentals,” Inenco analyst Chloe Bradley said.
Commerzbank analysts agreed, writing in a note to clients: “Despite all the sources of geopolitical crisis, there is ample physical supply on the European oil market at present.”
By Friday on London’s Intercontinental Exchange, Brent North Sea crude for delivery next month had fallen to US$104.85 per barrel from US$107.78 one week earlier.
On the New York Mercantile Exchange, West Texas Intermediate, or light sweet crude, for next month was US$97.30 from US$101.66.
COCOA: Prices were catapulted to a 3.5-year pinnacle at £2,028 per tonne in London, on the back of solid demand and intense speculative buying. The key chocolate ingredient has jumped by almost one-fifth in value so far this year.
“Demand remains a primary driver of the market and stronger demand is expected to continue well into next year,” Price Futures Group analyst Jack Scoville said. “West African production continues to be strong and prospects for strong production for the coming crop are good.”
By Friday on LIFFE, cocoa for delivery next month rose to £2,019 a tonne from £1,984 a week earlier. On ICE Futures US, cocoa for next month nudged down to US$3,196 a tonne from US$3,198.
COFFEE: Prices leapt to a three-month peak of US$0.20740 per pound (0.45kg) on Friday, driven by expectations of a poor crop in top producer Brazil.
The market also zoomed to US$2,139 per tonne in London, the highest level since mid-May.
“The continuingly bleak outlook for the current Brazilian coffee harvest has seen the commodity jump,” IG analyst Alastair McCaig said. “With more disappointing weather expected in the coming weeks, this run could carry on for some time.”
On ICE Futures US, Arabica for delivery next month rallied to US$0.196.90 a pound from US$0.17950 a week earlier. On LIFFE, Robusta for next month rose to US$2,114 a tonne from US$2,018.
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