Glencore lifts copper and coal output

      MINING and trading group Glencore Xstrata yesterday beat analysts' forecasts with a 26 per cent rise in annual copper output, boosted by strong growth at its African and Chilean mines.

Output of both copper and coal, the two biggest earners for Glencore's industrial side, rose in the year to the end of December, offsetting a decline in nickel, lead and zinc.

The company, which of the diversified miners has the biggest exposure to copper, said its ownsourced copper production rose by more than a quarter to 1.5m tonnes in 2013, passing analysts' expectations for a rise of 16 to 25 per cent.

The division, which accounts for about 30 per cent of the company's profits, benefited from strong growth at its Congolese mines and at Collahuasi in Chile , a joint venture with rival Anglo American inherited with the acquisition of Xstrata last year.

"Copper is central to our bullish stance on Glencore Xstrata given our positive view on the future price development of the commodity and the strong prospects for Glencore to grow production," Bernstein research analysts said in a note. - Kitco

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Gold, silver extend last week’s winning streak

               Gold and silver prices extended gains from last week on Monday, as a mixed U.S. employment report forced investors to recalibrate their assumptions about the future course of the Federal Reserve's monetary policy.

Gold futures ended Friday’s session up 0.45% to settle at USD1,262.90 a troy ounce.On the Comex division of the New York Mercantile Exchange, gold futures for April delivery hit USD1,276.00 a troy ounce, the most since January 27, before trimming gains to trade at USD1,274.60 during European morning hours, up 0.9%.

Prices were likely to find support at USD1,252.20 a troy ounce, the low from February 5 and resistance at USD1,279.20, the high from January 26.

Meanwhile, silver for March delivery rose 1.1% to trade at USD20.15 a troy ounce. The March contract settled 0.04% higher on Friday to end at USD19.93 an ounce.

Silver futures were likely to find support at USD19.75 a troy ounce, the low from February 7 and resistance at USD20.24, the high from February 5.

Data on Friday showed that the U.S. economy added 113,000 jobs in January, well below expectations for jobs growth of 185,000, after December's lackluster gain of 75,000 jobs.

It was the weakest two-month stretch of job creation in three years as inclement weather contributed to a slowdown in hiring.

Yet the report also showed that the number of people participating in the labor force edged up to 63% from a 30-year low of 62.8% last month, while the unemployment rate unexpectedly ticked down to a five year low 6.6% from 6.7% in December.

Market players now looked ahead to Congressional testimony from new Federal Reserve Chair Janet Yellen later in the week for clues regarding the future of course of U.S. monetary policy.

The Fed tapered its monthly asset purchase program by another USD10 billion to USD65 billion a month at its last policy meeting.

Elsewhere on the Comex, copper futures for March delivery rose 0.1% to trade at USD3.239 a pound. - investing.com

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Copper futures little changed near 1-week high

            Copper futures were little changed near a one-week high on Monday, as investors looked ahead to key economic data out of China later in the week to gauge the strength of the world’s second largest economy.

The March copper contract ended Friday’s session up 0.22% to settle at USD3.236 a pound.On the Comex division of the New York Mercantile Exchange, copper futures for March delivery hit USD3.253 a pound, the most since January 20, before trimming gains to trade at USD3.238 a pound during European morning hours, up 0.05%.

Futures were likely to find support at USD3.191 a pound, the low from February 6 and resistance at USD3.258 a pound, the high from January 30.

On Thursday, China will release its monthly trade data, which will be followed by inflation numbers Friday. The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

Meanwhile, in the U.S., data on Friday showed that the economy added 113,000 jobs in January, well below expectations for jobs growth of 185,000, after December's lackluster gain of 75,000 jobs.

It was the weakest two-month stretch of job creation in three years as inclement weather contributed to a slowdown in hiring.

Yet the report also showed that the number of people participating in the labor force edged up to 63% from a 30-year low of 62.8% last month, while the unemployment rate unexpectedly ticked down to a five year low 6.6% from 6.7% in December.

Market players now looked ahead to Congressional testimony from new Federal Reserve Chair Janet Yellen later in the week for clues regarding the future of course of U.S. monetary policy.

The Fed tapered its monthly asset purchase program by another USD10 billion to USD65 billion a month at its last policy meeting.

Elsewhere on the Comex, gold for April delivery rose 0.8% to trade at USD1,272.90 a troy ounce, while silver for March delivery advanced 1.1% to trade at USD20.15 a troy ounce. - investing.com

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Natural gas futures - weekly outlook: February 10 - 14

              U.S. natural gas futures fell sharply on Friday, as a break in the cold to milder weather prompted a 

correction in the market after a rapid price run-up which took prices to a four-year high earlier in the week.

The March contract tumbled 1.97% on Thursday to settle at USD4.931 per million British thermal units. Prices rallied to USD5.737 on Wednesday, the highest since January 2010.On the New York Mercantile Exchange, natural gas futures for delivery in March slumped to a session low of USD4.739 per million British thermal units, the weakest since January 31, before trimming losses to settle at USD4.775, down 3.16%.

Natural gas futures were likely to find support at USD4.652 per million British thermal units, the low from January 27 and resistance at USD5.018, the high from February 7.

On the week, Nymex natural gas prices lost 3.39%, the second consecutive weekly decline.

Natural gas futures were pressured on Friday after updated weather forecasting models pointed to moderating temperatures that would curb demand for the heating fuel.

Temperatures are expected to warm following the arctic chill that settled through most of the nation during January.

MDA Weather Services said it expects a "more aggressive warm up" in the Midwest by late next week, while a "more substantial warmth" will build over the central U.S. in its 11- to 15-day forecast.

Bearish speculators spent the session betting that milder weather will decrease demand for the heating fuel.

The heating season from November through March is the peak demand period for U.S. gas consumption. Approximately 52% of U.S. households use natural gas for heating, according to the Energy Department.

The U.S. Energy Information Administration said Thursday that natural gas supplies dropped by 262 billion cubic feet in the week ended January 31, compared to expectations for a decline of 270 billion cubic feet.

Total U.S. natural gas storage stood at 1.923 trillion cubic feet as of last week, approximately 22% below the five-year average for this time of year and nearly 29% below last year’s unusually high level.

Natural-gas inventories have fallen sharply since November as frigid winter temperatures in the U.S. led households to burn a higher than normal amount of the fuel in furnaces to heat their homes.

Data from the Commodities Futures Trading Commission released Friday showed that hedge funds and money managers reduced their bullish bets in natural gas futures in the week ending February 4.

Net longs totaled 151,338 contracts, down 11.5% from net longs of 171,029 in the previous week.

Elsewhere in the energy complex, light sweet crude oil futures for March delivery settled at USD99.88 a barrel by close of trade on Friday, up 2.39% on the week.

Meanwhile, heating oil for March delivery picked up 1.64% on the week to settle at USD3.048 per gallon by close of trade Friday. - investing.com

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Crude oil futures - weekly outlook: February 10 - 14

         New York-traded crude oil futures rallied more than 2% to trade above USD100-a-barrel for the first time in more than a month on Friday, as a broadly weaker U.S. dollar and strong gains in U.S. equity markets boosted the appeal of the commodity.

On Thursday, Nymex oil prices settled 0.47% higher to end at USD97.84 a barrel.On the New York Mercantile Exchange, light sweet crude futures for delivery in March surged to a daily high of USD100.24 a barrel on Friday, the most since December 30, before trimming gains to settle at USD99.88 a barrel, up 2.09% on the day.

U.S. oil futures were likely to find support at USD97.13 a barrel, the low from February 7 and resistance at USD100.42 a barrel, the high from December 30.

On the week, U.S. crude futures, also known as West Texas Intermediate or WTI, climbed 2.39%, the fourth consecutive weekly gain.

The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, declined 0.29% on Friday to settle the week at 80.75, the lowest since January 30.

Dollar-denominated oil futures contracts tend to rise when the dollar falls, as this makes oil cheaper for buyers in other currencies.

Meanwhile, the Dow Jones Industrial Average and the S&P 500 ended more than 1% higher on Friday, due to perceptions that the economy is improving but not fast enough to prompt the Federal Reserve to rush to taper stimulus programs.

U.S. shares and crude oil have traded in tandem for several months, on the belief share prices act as a proxy for economic sentiment and are a bellwether for oil demand.

Data on Friday showed that the U.S. economy added 113,000 jobs in January, well below expectations for jobs growth of 185,000, after December's lackluster gain of 75,000 jobs.

It was the weakest two-month stretch of job creation in three years as inclement weather contributed to a slowdown in hiring.

Yet the report also showed that the number of people participating in the labor force edged up to 63% from a 30-year low of 62.8% last month, while the unemployment rate unexpectedly ticked down to a five year low 6.6% from 6.7% in December.

In the week ahead, Fed Chair Janet Yellen is to testify on the central bank’s semiannual monetary policy report in Washington. Her comments will be closely watched.

Monthly supply and demand reports from the U.S. Energy Information Administration, the International Energy Agency and the Organization of the Petroleum Exporting Countries will also be in focus.

Data from the Commodities Futures Trading Commission released Friday showed that hedge funds and money managers increased their bullish bets in oil futures in the week ending February 4.

Net longs totaled 275,931 contracts, compared to 260,282 in the preceding week.

Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for March delivery soared 2.22% on Friday to settle the week at USD109.57 a barrel, the highest since January 2.

The March Brent contract picked up 2.89% on the week. Meanwhile, the spread between the Brent and the crude contracts stood at USD9.69 a barrel by close of trade on Friday.

The London-traded Brent contract was boosted amid concerns over declining output from the Buzzard oilfield in the North Sea, which is expected to undergo maintenance in the second quarter this year. - investing.com

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Gold / Silver / Copper futures - weekly outlook: February 10 - 14

       Gold futures ended Friday’s session higher, after disappointing U.S. nonfarm payrolls data reduced concerns over a further reduction in U.S. monetary stimulus.

Comex gold prices ended Thursday’s session little up 0.02% at USD1,257.20 a troy ounce.On the Comex division of the New York Mercantile Exchange, gold futures for April delivery rose to a session high of USD1,272.00 a troy ounce on Friday, before trimming gains to settle at USD1,262.90 by close of trade, up 0.78% on the day and 1.48% higher for the week.

Gold futures were likely to find support at USD1,240.40 a troy ounce, the low from February 3 and resistance at USD1,274.50, the high from February 5.

Meanwhile, silver for March delivery ended Friday’s session up 0.04% to close the week at USD19.93 a troy ounce. On Thursday, silver prices settled 0.62% higher at USD19.92 an ounce.

The March silver futures contract picked up 4.06% on the week, the first weekly gain in three weeks.

The U.S. economy added 113,000 jobs in January, the Labor Department said, well below expectations for jobs growth of 185,000, after December's lackluster gain of 75,000 jobs.

It was the weakest two-month stretch of job creation in three years as inclement weather contributed to a slowdown in hiring.

The unemployment rate inched down to a five-year low of 6.6% from 6.7% in December, while the number of people participating in the labor force edged up to 63.0% from an almost 35-year low of 62.8% last month.

The disappointing data cooled expectations that the Federal Reserve would cut its stimulus program again this month. The central bank said it will keep a close eye on economic indicators before deciding to wind down its stimulus program even further.

The Fed tapered its monthly asset purchase program by another USD10 billion to USD65 billion a month at its last policy meeting.

In the week ahead, Fed Chair Janet Yellen is to testify on the central bank’s semiannual monetary policy report in Washington. Her comments will be closely watched.

Data from the Commodities Futures Trading Commission released Friday showed that hedge funds and money managers reduced their bullish bets in gold futures in the week ending February 4.

Net longs totaled 59,408 contracts, compared to 60,672 in the preceding week.

Elsewhere on the Comex, copper for March delivery hit a daily high of USD3.248 a pound on Friday, the most since January 30, before trimming gains to end at USD3.236 a pound, up 0.22%.

Comex copper prices added 1.2% on the week, the first weekly advanced in four weeks. - investing.com

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Copper falls to 7-week low after China PMI data

           Copper futures fell to a seven-week low on Thursday, after data confirmed a contraction in China’s manufacturing sector and following the Federal Reserve’s decision to taper its monthly bond-buying program by USD10 billion for the second consecutive meeting.

On the Comex division of the New York Mercantile Exchange, copper futures for March delivery fell to a session low of USD3.231 a pound, the weakest since December 9, before trimming losses to trade at USD3.235 during European morning hours, down 0.15%. 

The March copper contract settled down 0.38% on Wednesday to end at USD3.240 a pound. Copper futures were likely to find support at USD3.217 a pound, the low from December 6 and resistance at USD3.269 a pound, the high from January 29.

China’s final HSBC Purchasing Managers Index released earlier fell to a six-month low of 49.5 in January, down from a preliminary reading of 49.6 and compared to 50.5 in December.

China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

Meanwhile, the Fed said Wednesday that it would reduce its monthly bond buying program by USD10 billion to a total of USD65 billion a month, in a widely anticipated decision.

The U.S. central bank said growth signals are encouraging, and the unemployment market shows improvement "on balance".

The Fed left unchanged its statement that interest rates are likely to remain low even after the unemployment rate drops below 6.5%, the threshold at which the central bank has previously said it would start to consider rate increases.

The Fed added it will keep a close eye on economic indicators before deciding to wind down its stimulus program even further.

The U.S. is to publish preliminary data on fourth quarter economic growth. The nation is also to release the weekly report on initial jobless claims and data on pending home sales.

Market players continued to monitor liquidity conditions in emerging markets, such as Turkey and South Africa. 

Emerging markets economies have been hard hit in recent sessions by worries over the impact of cuts in Fed stimulus and concerns over a possible slowdown in China.

Elsewhere on the Comex, gold for April delivery fell 0.6% to trade at USD1,254.50 a troy ounce, while silver for March delivery declined 0.85% to trade at USD19.39 a troy ounce. - investing.com

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Silver falls to 4-week low after Fed tapers stimulus

             Silver futures fell to a four-week low on Thursday, after the Federal Reserve announced that it will taper its bond-buying program by USD10 billion a month.

On the Comex division of the New York Mercantile Exchange, silver futures for March delivery fell to a session low of USD19.28 a troy ounce, the weakest since December 31, before trimming losses to trade at USD19.39 during European morning hours, down 0.8%.

The March contract settled 0.25% higher on Wednesday to end at USD19.55 an ounce. Silver futures were likely to find support at USD19.13 a troy ounce, the low from December 20 and resistance at USD19.96, the high from January 29.

Meanwhile, gold for April delivery traded at USD1,257.00 a troy ounce, down 0.4%.

The Fed said Wednesday that it would reduce its monthly bond buying program by USD10 billion to a total of USD65 billion a month, in a widely anticipated decision.

The U.S. central bank said growth signals are encouraging, and the unemployment market shows improvement "on balance".

The Fed left unchanged its statement that interest rates are likely to remain low even after the unemployment rate drops below 6.5%, the threshold at which the central bank has previously said it would start to consider rate increases.

The Fed added it will keep a close eye on economic indicators before deciding to wind down its stimulus program even further.

The U.S. is to publish preliminary data on fourth quarter economic growth. The nation is also to release the weekly report on initial jobless claims and data on pending home sales.

Elsewhere on the Comex, copper futures for March delivery inched up 0.1% to trade at USD3.244 a pound. Copper prices slumped to a seven-week low of USD3.231 a pound earlier after data confirmed a contraction in China’s manufacturing sector.

China’s final HSBC Purchasing Managers Index released earlier fell to a six-month low of 49.5 in January from a preliminary reading of 49.6 and down from 50.5 in December.

China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year - Investing.com

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WTI oil futures inch higher ahead of U.S. GDP data

                   U.S. oil futures edged higher on Thursday, as investors looked ahead to upcoming U.S. economic data to gauge the strength of the world’s largest oil consuming nation.

On the New York Mercantile Exchange, West Texas Intermediate crude for delivery in March traded in a range between USD97.35 a barrel and USD97.67 a barrel.

Nymex oil prices were last trading at USD97.59 a barrel during European morning hours, up 0.25%.

WTI oil prices settled 0.05% lower on Wednesday to end at USD97.36 a barrel. Nymex oil futures were likely to find support at USD95.63 a barrel, the low from January 28 and resistance at USD97.80 a barrel, the high from January 24.

The U.S. is to publish preliminary data on fourth quarter economic growth. The nation is also to release the weekly report on initial jobless claims and data on pending home sales.

On Wednesday, the Federal Reserve said that it would reduce its monthly bond buying program by USD10 billion to a total of USD65 billion a month, in a widely anticipated decision.

The central bank added it will keep a close eye on economic indicators before deciding to wind down its stimulus program even further.

Oil traders shrugged off data confirming a contraction in China’s manufacturing sector. China’s final HSBC Purchasing Managers Index released earlier fell to a six-month low of 49.5 in January from a preliminary reading of 49.6 and down from 50.5 in December.

Meanwhile, market players continued to monitor liquidity conditions in emerging markets, such as Turkey and South Africa. 

Emerging markets economies have been hard hit in recent sessions by worries over the impact of cuts in Fed stimulus and concerns over a possible slowdown in China.

Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for March delivery inched up 0.1% to trade at USD107.94 a barrel, while the spread between the Brent and U.S. crude contracts stood at USD10.35 a barrel.  -  Investing.com
 
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Gold edges lower after Fed tapers by USD10 billion

               Gold prices edged lower on Thursday, after the Federal Reserve announced that it will taper its bond-buying program to USD65 billion a month following its policy meeting.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery fell to a session low of USD1,255.40 a troy ounce, before trimming losses to trade at USD1,256.90 during European morning hours, down 0.4%.

The April contract rallied 0.94% on Wednesday to settle at USD1,262.20 an ounce as ongoing turbulence in emerging markets saw investors flee riskier assets and move in to safe-havens.

Gold futures were likely to find support at USD1,248.00 a troy ounce, the low from January 28 and resistance at USD1,280.10, the high from January 27.

The Fed said Wednesday that it would reduce its monthly bond buying program by USD10 billion to a total of USD65 billion a month, in a widely anticipated decision.

The U.S. central bank said growth signals are encouraging, and the unemployment market shows improvement "on balance".

The Fed left unchanged its statement that interest rates are likely to remain low even after the unemployment rate drops below 6.5%, the threshold at which the central bank has previously said it would start to consider rate increases.

The Fed added it will keep a close eye on economic indicators before deciding to wind down its stimulus program even further.

The U.S. is to publish preliminary data on fourth quarter economic growth. The nation is also to release the weekly report on initial jobless claims and data on pending home sales.

Meanwhile, silver for March delivery fell to USD19.28 a troy ounce, the weakest level since December 31, before paring losses to trade at USD19.37 during early European hours. 

Elsewhere on the Comex, copper futures for March delivery fell 0.2% to trade at USD3.235 a pound, the lowest since December 9.

Data released earlier showed that China’s final HSBC Purchasing Managers Index fell to a six-month low of 49.5 in January from a preliminary reading of 49.6 and down from 50.5 in December.

China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year. - Investing.com

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