Commodity markets made a flying start to 2010 with crude oil rising by more than $1 a barrel, sugar prices extending their record breaking run and strong gains for copper spearheading a broad advance across the base metals sector.
Crude oil prices were boosted by cold winter weather in the US and Europe and news that Russia has stopped shipments of oil to Belarus following a dispute about pricing.
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Nymex February West Texas Intermediate reached a high of $81.16 before easing back slightly to trade $1.64 higher at $81.00 a barrel.
ICE February Brent rose $1.70 to $77.63 a barrel.
Among the base metals, copper hit a 16-month high, up 1.6 per cent to $7,525 a tonne after as a strike started at the Chuquicamata mine in northern Chile, owned by Codelco.
Among other LME metals, aluminium rose 1.3 per cent to $2,275 a tonne while zinc added 1.9 per cent at $2,625 a tonne, nickel advanced 1.2 per cent to $19,075 a tonne, lead added 2.2 per cent at $2,494.25 a tonne and tin gained 3.1 per cent at $17,400 a tonne.
Sugar prices extended their record breaking run with global sugar stocks at a record low and fears that the market will face acute supply shortages early in 2010.
Liffe March white sugar rose 0.7 per cent to $715 a tonne while ICE March raw sugar was up 1.8 per cent at 27.43 cents a pound.
US agricultural commodities have been bolstered by winter weather in the mid-west which has delayed the final stages of this year’s corn harvest.
In electronic trading in Chicago, CBOT March corn rose 8½ cents to $4.23 a bushel while CBOT March corn rose 8½ cents to $4.23 a bushel and CBOT January soyabeans advanced 12 cents to $10.53 a bushel.
Renewed dollar weakness helped gold regain the $1,100 mark, trading around $1,117.50 a troy ounce after ending the new year’s eve session in New York at $1,095.70
