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Commodity prices slide after recent run on gains

A worker walks between stacks of high-purity aluminum ingots at the Khakas aluminium smeltery in the Siberian city of Sayanogorsk, 500km south of Krasnoyarsk, Russia, on Friday. The Khakas aluminum smeltery, with an annual capacity of 300,000 tonnes, is the first aluminum production facility to be built in Russia in the past 20 years. PHOTO: REUTERS

Commodities prices fell in the past week, giving back some of their recent gains while precious metals slipped as more confident investors looked to exit safe-havens such as gold, analysts said.

OIL: Oil prices fell below US$70 on profit-taking on Friday after a brief rally spurred by hopes that the worst may be over for the ailing global economy.

Early gains were also supported by continuing attacks on oil facilities in Nigeria and concerns about political developments in Iran, OPEC’s second largest producer, following disputed presidential elections there.

New York’s main futures contract, light sweet crude for delivery in July, shed US$1.82 from Thursday’s close to end at US$69.55 a barrel after climbing past US$72.

In London trading, Brent North Sea crude for August delivery dropped US$1.87 to US$69.19 per barrel.

Traders said prices came under pressure ahead of tomorrow’s expiry of the New York futures July contract.

PRECIOUS METALS: Gold prices slipped further after a recent rally toward US$1,000 an ounce.

“With the recent recovery in risk appetite, safe-haven demand for gold has receded,” BNP ­Paribas analyst Anne-Laure Tremblay said.

By late Friday on the London Bullion Market, gold dropped to US$933.75 an ounce from US$937.25 a week earlier.

Silver fell to US$14.23 an ounce from US$15.07.

On the London Platinum and Palladium Market, platinum slipped to US$1,209 an ounce at the late fixing on Friday from US$1,241.

Palladium declined to US$241 an ounce from US$252.50.

BASE METALS: Base metals prices slid after recent sharp gains. China’s strong purchase of metals spurred other investors to buy up commodities in recent weeks.

By Friday on the London Metal Exchange, copper for delivery in three months fell to US$5,039 a tonne from US$5,255 a week earlier.

Three-month aluminum dropped to US$1,665 a tonne from US$1,670.

GRAINS AND SOYA: Grains and soya prices retreated on strong supply expectations.

By Friday on the Chicago Board of Trade, maize for delivery in July fell to US$3.94 a bushel from US$4.25 a week earlier.

July-dated soyabean meal — used in animal feed — decreased to US$12.01 from US$12.45.

Wheat for July dropped to US$5.10 a bushel from US$5.84.
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