Commodity markets staged a broad advance on Wednesday with white sugar continuing to trade at record levels while cocoa maintained its grip near 32-year highs.
Base metals moved higher and oil prices rose ahead of the latest US inventories data while gold steadied in spite of a warning that a bullion bubble had developed from Nouriel Roubini.
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Gold traded at $1,113.40 a troy ounce after ending Tuesday’s session in New York at $1,124.00, consolidating as traders waited to see the dollar’s reaction to the latest Federal Reserve meeting on Wednesday.
White sugar prices rose with Liffe March white sugar up 1.2 per cent at $664 a tonne, after reaching a record $666.3 in the previous session, helped by supply shortfalls in Asia.
Raw sugar have traded above the 25 cents a pound mark this week for the first time since 1981. ICE March raw sugar added 3.3 per cent at 25.63 cents a pound.
Cocoa prices traded near the highest level for 32 years amid concerns that the market will experience a supply shortfall for a fourth successive season in 2009/10.
The market has not seen such a prolonged deficit since a shortage in 1965-69, according to the International Cocoa Organisation.
London Liffe May cocoa price traded 0.3 per cent higher at £2,280 a tonne after reaching £2,290 a tonne in the previous session, the highest point for benchmark contract since October 1977.
The market has not seen such a prolonged deficit since the 1965-69 shortage, according to data from the International Cocoa Organisation, in London.
Crude oil prices rose ahead of the latest US weekly inventories data with Nymex January West Texas Intermediate up 64 cents to $71.32 a barrel, while ICE January Brent gained $1 at $73.05 a barrel.
US crude stocks were forecast to have fallen 1.8m barrels last week, according to a poll of analysts by Reuters.
Colder US weather was expected to have boosted demand for heating oil with distillate stocks (including heating oil) seen falling 600,000 barrels last week.
Nymex January heating oil traded up 2.2 cents, or 1.2 per cent at $1.9254 a gallon.
An improvement in refiners’ profit margins for producing petrol was expected to have boosted gasoline output. Petrol stocks were seen rising 1.3m barrels last week. Nymex January RBOB unleaded gasoline added 1.4 cents, or 0.8 per cent, at $1.8595 a gallon.
Copper prices rose 1 per cent to $6,970 a tonne while aluminium added 1.8 per cent at $2,275 a gallon.
