Crude Prices Remain Supported

Silver Lost the Most Value

Gold dipped 0.12% or $1.50 last week. Yet, futures for June delivery inched higher 0.4% or $5.10, to $1,203.10 an ounce on Friday on the Comex. During April 17 gold prices were fluctuating between $1,183.50 an ounce, the lowest since April 14, and $1,224.50 an ounce, the highest since April 6. London gold prices fell 0.1% or $1 to $1,203.35 an ounce on Friday. Elsewhere, April gold futures were trading at $1,208 an ounce in the global market. Meanwhile, on Friday the Labor Department announced that inflation in the US rose 0.2%, corresponding the February gain. Furthermore, gold prices were well sustained during last week amid delay of the interest rate by the Fed till the last quarter of 2015.

Silver futures dropped the most during last week, cutting 0.93% or 19.1 cents, third consecutive weekly loss. Meanwhile, silver futures for May delivery fell 0.34% or 5.5 cents to $16.22 per troy ounce on April 17 on the Comex. On Wednesday silver reached the highest value of $16.60 on the Comex. Elsewhere, silver added 0.8% to $16.47 an ounce on Thursday in Singapore.

Platinum for July delivery advanced 0.7% or $8.30 and ended Friday session at $1,167.50 an ounce on the Nymex. On the weekly basis platinum cut about 0.44% of its value.

Palladium for June delivery rallied 0.4% or $3.20 to $782.95 an ounce on Friday. However, during last week palladium added 0.13%, the third consecutive weekly gain.

Zinc Closed in Green Among Others

Copper changed its value last week amid the Chinese policymakers speculation to impulse the economic growth. Last week, Chinese authorities surprisingly announced that the amount of minimum deposits banks are required to hold are lowered to 18.5% from 19.5%. Such a decision came after the data showed that the Chinese economy grew 7%, the lowest pace since the year of 2008 crisis. Meanwhile, the industrial production, as well as the retail sales and fixed asset investment did not meet the forecasts, indicating that China has to prevent the further economic growth lackluster. Asian nation accounts for about 40% of world’s copper consumption.

Aluminum continued to firm last week amid an exceptionally strong demand. The demand in an automobile industry has risen considerably in 2015 and enough metal are needed to source the industry. As a matter of fact, car makers in Italy, Spain and France, have seen a recovery in production and sales since the end of the last year and also risen the alloy demand. Aluminum contract price has risen 2.7% on a weekly basis.

Zinc prices lost the most during the week, contracting about 1.35%. However, the metal appreciated 5.66% during the last month, whereas other base metals tumbled.

Crude Prices Remain Supported

Crude oil for May delivery shed 1.71%, settling at $55.74 per barrel by Friday close. Despite, New York traded oil price increased $3.93, or 7.94%, during the week. US oil futures were well supported due to expectations of peaked oil production that may start falling sooner or later. The number of rigs drilling oil in the US declined by 26 last week to 734, the year of 2010 low.

Natural gas futures appreciated to the highest level in more than a week on Friday close, before continuing to depreciate as investors locked their gains from the rally. On the New York Mercantile Exchange, natural gas for May delivery hit a peak of $2.693 per mBtu, the highest since April 7, yet, closed at $2.634, down 5.0 cents, on Friday. Natural gas value has been under a heavy pressure in recent weeks amid the end of the winter season. Spring usually brings the smallest demand for gas in US.

Brent for June delivery slumped 53 cents, or 0.83%, settling at $63.45 per barrel by Friday close on ICE Futures Exchange in London. On the weekly basis, Brent jumped $4.37, or 7.63%, following a second weekly consecutive advance. Meanwhile, Saudi Arabia increased the output by about 668.000 barrels per day in March, hitting a total of 10.294 million barrels.

Corn Rises Amid Heavy Rains

Corn futures rose on Friday over the concerns of wet weather that is delaying planting in the US grain belt. For the meek, the May futures contract added 5 cents, or 0.63%, the first weekly gain in a month. The US Department of Agriculture stated that only 2% of the crop was planted since April 12. For the week, the May contract cut 25 cents, or 6.38%, the largest weekly decline since July.

Wheat May contract slumped 1.07 cents, or 0.22%, settling at $4.9440 per bushel of Friday close. On the week, May wheat tumbled 25 cents, the highest weekly drop since July, as weather forecast a lack of much– needed rains in wheat- growing states. According to USDA Wasde, the US winter crop was rated at 42% good to excellent condition as of the previous week. About 34% was in the same condition a year earlier. Meanwhile, the spring crop was 17% planted last week, compared to only 5% in 2014.

Soybean futures for May delivery added some 2.6 cents, or 0.28%, ending at $9.6860 per bushel. During the week, the Ma soybean contact tacked about 2%.

Coffee benchmark active contract on the NYB-ICE Futures Exchange for the arabica sort gained 3.71% on a weekly basis. Yet, the commodity declined 14.03% in value over the three– month period.

EXPLANATIONS

Commodities

• Gold - COMEX active contracted (USD/t o.z.)

• Silver - COMEX active contract (USD/t o.z.)

• Platinum - New York Mercantile Exchange active contract (USD/t o.z.)

• Palladium - New York Mercantile Exchange active contract (USD/t o.z.)

• Aluminum - Active contract of primary aluminum of minimum 99.2% purity at the LME (USD/MT)

• Copper - Active contact of electrolytic copper at the LME (USD/MT)

• Zinc - Active contract of zinc od minimum 99.995% purity at the LME (USD/MT)

• Nickel - Active contract of nickel of 99.8% purity at the LME (USD/MT)

• Crude oil - light, sweet crude oil active contract on the New York Mercantile Exchange (USD/bbl.)

• Brent oil - Brent oil active contract on the ICE Futures Europe (USD/bbl.)

• Natural Gas - natural gas active contract on the New York Mercantile Exchange (USD/MMBtu)

• Heating oil - heating oil active contract on the New York Mercantile Exchange (USD/gal.)

• Wheat - wheat active contract on the Chicago Board of Trade (cents/bu)

• Corn - corn active contract on the Chicago Board of Trade (cents/bu)

• Coffee - benchmark Arabica coffee active contract on the NYB-ICE Futures Exchange

• Soybeans - active contract on the Chicago Board of Trade (cents/bu)

Indices

• S&P GSCI Precious Metals Total Return Index - commodity group subindex composed of gold and silver; the index reflects return on underlying commodity futures price movement

• S&P GSCI Industrial Metals Total Return Index - commodity group subindex composed of futures contracts on aluminium, copper, lead, nickel and zinc

• S&P GSCI Energy Total Return Index - commodity group subindex composed of futures contracts on crude oil, Brent oil, RBOB gas, heating oil, gas oil and natural gas

• S&P GSCI Agriculture Total Return Index - commodity group subindex composed of futures contracts on wheat, red wheat, corn, soybeans, cotton, sugar, coffee and cocoa

Indicators

Long-term price forecasts - aggregated price forecasts based on predictions of 20 international banks forecasts

USDA Wasde Total Estimated Inventories (Today) - current level of inventories of wheat in 1000 MT, corn in 1000 MT, soybeans in million bushels and green coffee in 1000 bags