Lead Prices Hit Years Lowest Levelnew Low Shake-Out

LME three-months delivery fell as low as $715 per tonne, its lowest since Jan end. Last afternoon trade was a touch firmer at $719 but traders said a test of $700 is likely. Copper firmed on news of big drop of 19,125 tonnes in warehouse stocks but stayed within recent range around $1,950 per tonne.

Gold closed in London at $380.15 after $380.45 on Thursday and was considered vulnerable after fresh speculator sales in the precious metals sector. Palladium fixed at a 3-1/2 year low of $115.25 per ounce.

But oil prices were again firm on strong pre-winter demand for heating fuel in the northern hemisphere. Benchmark Brent Blend crude oil futures were up by about 25 cents on the day around $24.45 in Londons late afternoon.

 

Coffee prices fell with January Robusta type futures down $27 per tonne to end the week at $1,397 on selling by producer nations and by investment funds.

Cocoa futures also ignored news of a big U.S. grind, an indication of demand, to ease 14 pounds sterling to 986 sterling by the London close. Supply is seen building soon.

Selling of sugar began in New York and moved to London where the nearby white sugar futures contract dropped as low as $316.00 per tonne, down from $319 on Thursday, before making some recovery.

The London-based International Sugar Organization (ISO) predicted in a report that prices were likely to drift down under a 1996/97 surplus of 2.5 million tonnes.

The ISO said that this would offset other factors so that the world market enters a period of lower prices... Following are some key commodity prices at 1630 GMT

Friday Thursday

Gold ($/ounce) 380.15 380.45

IPE Brent ($/barrel) (Dec) 24.45 24.18

(London Metal Exchange)

COPPER (three months/tonne) 1,940.00 1,935.00

ALUMINIUM 1,359.00 1,368.00

(Ldn futures)

COFFEE ($/tonne) (Jan) 1,397.00 1,424.00

COCOA (sterling/tonne) (Mar) 986.00 1,000.00

WHITE SUGAR ($/tonne) (Dec) 317.50 319.00 Reut16:37 18-10