COMMODITIES-Oil sinks with Wall Street; coffee tumbles too

Tue Feb 5, 2013 5:08am IST

Related Topics

Stocks

   

* Oil sinks with Wall St stocks and as dollar strengthens

* Arabica coffee falls on weak technicals, more losses seen

By Barani Krishnan

NEW YORK, Feb 4 (Reuters) - Crude futures fell nearly 2 percent on Monday, sinking along with Wall Street stock prices as traders cashed in profits from a three-week rally in oil, which fed a broad decline across commodity markets.

Arabica coffee and cotton fell nearly 2 percent each, as a stronger dollar weighed on demand for commodities priced in the U.S. currency.

Soybeans bucked the broadly lower trend on the agricultural side, hitting a seven-week high. Copper and gold also edged higher, while platinum outperformed. [GOL/

The 19-commodity Thomson Reuters-Jefferies CRB index posted a 0.7 percent loss on the day -- its sharpest daily decline in nearly two months.

SEAWAY PIPELINE, PROFIT-TAKING HIT OIL

U.S. crude dropped $1.70 to a low of $96.07 per barrel, after rising for eight consecutive weeks, the longest such winning streak since July-August 2004. It settled at $96.17.

U.S. crude remained under pressure from Friday due to operating restrictions on the Seaway pipeline in Texas, which traders fear will keep a glut of oil near the delivery point for West Texas Intermediate futures from draining.

London's Brent crude fell to a low of $115.32 per barrel before recovering slightly to settle at $115.60. Brent had risen for three straight weeks.

COFFEE SLIDES

Arabica coffee futures in New York fell to a one-month low, with the key March contract finishing down 3.60 cents, or 2.4 percent, at $1.4435 per lb, weighed on partly by a firmer dollar. Total volume surged above 36,000 lots, the highest in two weeks, preliminary Thomson Reuters data showed.

Dealers said that based on historical price charts the technical outlook was bearish with potential for further losses.

"The market is weak, it's gone back into the range it's been trading since December," said a London-based broker.

Robusta coffee futures in London jumped for the third straight session, climbing more than 5 percent over three days to the highest levels in more than three months before falling back. May robustas closed down $8, or 0.4 percent, at $2,047 a tonne after peaking at $2,074, the highest level for the second month since Oct. 22, 2012.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Shares Hit Record

Sensex, Nifty rise to second consecutive record high

Sensex surges 500 points on BOJ easing, L&T gains

The BSE Sensex and Nifty surged to record highs for a second consecutive session on Friday after Bank of Japan's surprise expansion of its massive stimulus programme raised hopes for additional foreign inflows, boosting blue-chips such as Larsen & Toubro.  Full Article 

REUTERS SHOWCASE

Wilful Negligence?

Wilful Negligence?

SEBI piles pressure on Sahara to sell overseas hotels  Full Article 

Indian Economy

Indian Economy

India's fiscal deficit in H1 almost 83 pct of full-year target.  Full Article 

M&M Earnings

M&M Earnings

M&M Q2 net profit down 4 percent, hit by poor monsoon.  Full Article 

Ban on E-Cigs?

Ban on E-Cigs?

Govt considers ban on e-cigarettes, sale of single smokes.  Full Article 

Commodities

Commodities

Silver futures in India hit four-year low on global cues.  Full Article 

BOJ Policy

BOJ Policy

BOJ shocks markets with surprise easing as inflation slows.  Full Article 

Shadow Banking

Shadow Banking

China's shadow banking sector growing rapidly, third largest in world - FSB.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage