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| Commodities Report
RUBBER: Rubber prices continued their winning streak as supply worries added to the already optimistic demand outlook. "The demand is quite strong from China and now we are seeing more demand from European customers," said Martin Hampson at brokers Symington. BizVantage – Serious & personalized business, investment and technology intelligence for a serious advantage. "At the end of this month, early next month we will get into a rainy period in the producing areas, so we could see some disruption in the production. "And then at the end of November, we've got the month of Ramadan and Indonesian production is reduced by about 50 percent because of fasting, celebrations and holidays," he said. In Kuala Lumpur, the RSS 1 index rose to 4.010 ringgit per kilo on Thursday from 3.945 ringgit the previous week. COCOA: Cocoa futures were swept lower on a tide of speculative selling in response to rains favourable to the crop in leading producer Ivory Coast, analysts said. "The first 10 days of September have seen rains resume in Ivory Coast's southwest growing regions," said analyst Ann Prendergast at brokers Refco. "The market has broken through the 10-, 20- and 40-day moving average levels and is oversold. A weak bounce is likely ahead of further losses," she added. On LIFFE, London's financial futures exchange, the price of cocoa for December delivery fell to 997 pounds a tonne on Thursday from 1,110 the previous week. On the CSCE, the New York futures market, the December contract dropped to 1,528 dollars per tonne from 1,704. COFFEE: Coffee prices headed upwards again as worries about the Brazilian crop remained the primary concern. The Brazilian government estimated on Monday that the 2003/04 harvest would amount to 25 million 60 kilogram sacs, below a July forecast of 27.85 to 30.08 million sacs. On LIFFE, Robusta quality for November delivery climbed to 809 dollars per tonne on Thursday from 759 dollars the previous week. On New York's CSCE market, Arabica for December delivery firmed to 72.05 cents a pound from 64.95 cents the previous week. SUGAR: Sugar futures stabilised as buying on the physical market offset selling pressure from investment funds, analysts said. On LIFFE, the price of a tonne of white sugar for October delivery dipped to 186.50 dollars on Thursday from 187.50 a week earlier. On the CSCE in New York, a pound of unrefined sugar for October delivery edged up 6.00 cents from 5.97 the previous week. GRAINS AND SOYA: Wheat prices fell because of favourable weather in producer regions in the US southwest, analysts said. Maize prices also dropped after the US government cut its forecast for next season's harvest by a smaller-than-expected three million tonnes to 252.60 million. But soya prices rose after the government hiked its forecast by a bigger-than-anticipated six million tonnes to 71.92 million. Soya crops have suffered particulary from the hot and dry August. On LIFFE, the price of a tonne of wheat for November delivery eased to 88. 15 pounds from 90.00 pounds a week earlier. In Chicago, wheat for September delivery fell back to 340.00 cents a bushel from 354.00. Maize for September delivery weakened to 227.50 cents a bushel from 242.50. Soyabeans for September delivery climbed to 637.50 cents a bushel from 605. 75. September-dated soyabean meal -- used in animal feed -- climbed to 206.00 dollars per tonne from 204.20. COTTON: Cotton futures bolted up to a two-year high on the prospect of a fall in Chinese production. "China's Agricultural Ministry reduced cotton production to 5.0-5.2 million metric tonnes," said Refco's Prendergast. That was roughly 23-24 million bales, compared with a US government forecast in August of 27 million bales, she said. "If these production estimates are realized, China will probably have to import more cotton to satiate its demand, which could lead to higher prices," she said. New York's December contract climbed to 65.52 cents a pound on Thursday from 59.78 the previous week. The Cotton Outlook Index of physical cotton, the average of the world's lowest prices, gained to 61.65 cents from 61.00. WOOL: Wool prices were tugged lower by a strengthening of the Australian dollar which made the commodity less appealing to overseas buyers. The US exchange rate (of the Australian dollar) firmed considerably during the week, rising three percent," the Australian Wool Industries Secretariat noted in its weekly market report. "The effects of this increase were reflected in the downward shift in the market." The Australian Eastern index eased to 9.11 Australian dollars per kilo from 9.27 dollars the previous week. The British Wooltops index was flat at 552 pence pf-dr/lt Commodities
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