Commodity prices rallied to multi-month highs this week on increasing signs that the worst of the world recession may be over.
“The recent surge in commodity prices appears to have been driven primarily by hopes of a strong recovery in the global economy,” Capital Economics analyst Julian Jessop said.
“However, there are still many reasons to be cautious. For a start, although some commodity firms have undoubtedly taken advantage of lower prices to rebuild stocks in anticipation of a pick-up in final demand, that increase in demand has yet to materialize,” he said.
OIL: New York crude oil hit US$70 for the first time in seven months on Friday as the US dollar slid on news of a dramatic slowdown in US job losses, traders said.
New York crude spiked to US$70.32 a barrel, the highest level since Nov. 4. It later retreated sharply as the dollar recovered.
“This initial rally in crude looks to have failed,” aided by a recovering dollar, said Adam Klopfenstein, senior market strategist at Lind-Waldock.
A struggling US currency makes dollar-priced crude cheaper for buyers holding stronger currencies, in turn stimulating demand and pushing up prices. When the dollar strengthens the reverse tends to apply.
After plunging from record highs above US$147 last July on supply concerns, oil prices touched multi-year lows in December, at one point nearing US$32 a barrel, as the economic slowdown crushed demand for energy.
On Friday, on the New York Mercantile Exchange (NYMEX), light sweet crude for delivery in July closed at US$68.44 a barrel from US$65.94 a week earlier. It was down US$0.34 from Thursday, after a jump to US$70.32 a barrel, the highest level since Nov. 4.
On London’s InterContinental Exchange (ICE), Brent North Sea crude for July climbed to US$68.34 a barrel from US$65.05 a week earlier. Brent crude fell US$0.37 from Friday, having spiked as high as US$69.91.
PRECIOUS METALS: Gold prices approached US$1,000 an ounce before traders cashed in their gains late on. By late Friday on the London Bullion Market, gold fell to US$962 an ounce from US$975.50 a week earlier.
Silver rose to US$15.65 an ounce from US$15.52.
On the London Platinum and Palladium Market, platinum climbed to US$1,275 an ounce at the late fixing on Friday from US$1,175.
Palladium jumped to US$257 an ounce from US$236.
GRAINS AND SOYA: Soya and grains prices traded mixed.
By Friday on the Chicago Board of Trade, maize for delivery in July rose to US$4.45 a bushel from US$4.36 a week earlier.
July-dated soyabean meal — used in animal feed — increased to US$12.29 from US$11.84.
Wheat for July fell to US$6.28 a bushel from US$6.37.
DEFENDING DEMOCRACY: Taiwan shares the same values as those that fought in WWII, and nations must unite to halt the expansion of a new authoritarian bloc, Lai said The government yesterday held a commemoration ceremony for Victory in Europe (V-E) Day, joining the rest of the world for the first time to mark the anniversary of the end of World War II in Europe. Taiwan honoring V-E Day signifies “our growing connections with the international community,” President William Lai (賴清德) said at a reception in Taipei on the 80th anniversary of V-E Day. One of the major lessons of World War II is that “authoritarianism and aggression lead only to slaughter, tragedy and greater inequality,” Lai said. Even more importantly, the war also taught people that “those who cherish peace cannot
STEADFAST FRIEND: The bills encourage increased Taiwan-US engagement and address China’s distortion of UN Resolution 2758 to isolate Taiwan internationally The Presidential Office yesterday thanked the US House of Representatives for unanimously passing two Taiwan-related bills highlighting its solid support for Taiwan’s democracy and global participation, and for deepening bilateral relations. One of the bills, the Taiwan Assurance Implementation Act, requires the US Department of State to periodically review its guidelines for engagement with Taiwan, and report to the US Congress on the guidelines and plans to lift self-imposed limitations on US-Taiwan engagement. The other bill is the Taiwan International Solidarity Act, which clarifies that UN Resolution 2758 does not address the issue of the representation of Taiwan or its people in
The Philippines yesterday criticized a “high-risk” maneuver by a Chinese vessel near the disputed Scarborough Shoal (Huangyan Island, 黃岩島) in a rare incident involving warships from the two navies. The Scarborough Shoal — a triangular chain of reefs and rocks in the contested South China Sea — has been a flash point between the countries since China seized it from the Philippines in 2012. Taiwan also claims the shoal. Monday’s encounter took place approximately 11.8 nautical miles (22km) southeast” of the Scarborough Shoal, the Philippine military said, during ongoing US-Philippine military exercises that Beijing has criticized as destabilizing. “The Chinese frigate BN 554 was
LEISURE: The new law adds Confucius’ birthday, the anniversary of the Battle of Guningtou, Constitution Day and Little New Year as national holidays The Legislative Yuan yesterday passed new legislation adding four national holidays and making Workers’ Day a national holiday for all sectors. The Chinese Nationalist Party (KMT) and the Taiwan People’s Party used their combined majority in the legislature to push the jointly proposed draft through its third and final reading. This new law supersedes the existing regulations for the implementation of memorial days and state holidays, which are administered by the Ministry of the Interior. The new law recognizes Confucius’ birthday on Sept. 28, the anniversary of the Battle of Guningtou on Oct. 25, Constitution Day on Dec. 25 and “Little New Year,”
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