CM: Commodities: Oil, Copper, Gold All Higher; Cotton, Rubber at Records
Commodities continue to advance, climbing overnight in Asian and London trade on expectations for U.S. economic growth in 2011. Copper hit an all-time high in London on concerns that a month-long strike at a large mine in Chile will further stretch supplies.
Data due out on Wednesday from the Commerce Department is widely expected to show U.S. GDP grew 2.8% during Q3, up from the 2.5% estimate released last month. Growing numbers of economists have been similarly ratcheting up their predictions for Q4 and 2011 growth, portending higher demand for crude and industrial metals.
Gold, meanwhile, appears to be benefiting from ongoing sovereign debt concerns in several Euro-Zone countries, although gains remain somewhat contained by relative dollar strength. February Gold is little changed at 1,388.17 an ounce, up $0.05, on the Comex in New York.
Crude oil for February delivery rose $0.77 to $89.37 a barrel on Monday at the New York Mercantile Exchange, while the January contract expired yesterday at $88.81 for a $0.79 gain. At last look, the February contract is steady at $89.22 a barrel after earlier being stopped at a run toward $90.
An Energy Department report also due out tomorrow is expected to show U.S. crude-oil inventories dropped 3.5 million barrels last week, according to analysts responding to a Bloomberg News survey.
Cotton for March delivery rose 3.2% on Monday to an all-time high of $1.5912 a pound in New York, making for its biggest annual gain since 1973. Rubber futures also hit a record in Tokyo early yesterday, supported by wet weather in Thailand.
In company news, Cliffs Natural Resources ( CLF ) said Australian officials have granted final approval for the company to develop the Mt. Jackson J1 iron ore deposits in western Australia. The deposit is near Cliffs' Koolyanobbing Iron Ore deposits in Western Australia and contains an estimated 30 million tons of iron ore reserves with a 60% grade.
FMC Technologies ( FTI ) said it will supply subsea and topside systems for a Royal Dutch Shell unit at the West Boreas field in the Gulf of Mexico, including six subsea production trees rated at 15,000 psi. Deliveries will start in Q3 2012.
