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:
  • Most Popular
  • Most Shared

DEFENCE

REUTERS SHOWCASE

Power Theft

Power Theft

India to invest $4 billion to tackle power theft  Full Article 

Debt Funds

Debt Funds

India monitors foreign flows into debt funds, may tighten rules  Full Article 

Bulgari Back in India

Bulgari Back in India

CEO: we shouldn’t have left India so we’re back  Full Article 

 Hindu "Modi-fication"

Hindu "Modi-fication"

Fears grow about Hindu "Modi-fication" of education  Full Article 

Weak Credit

Weak Credit

Hard to hit tax revenue target, credit weak - Jaitley  Full Article 

China Rate Cut

China Rate Cut

China surprises with interest rate cut to spur growth  Full Article 

Gold Imports

Gold Imports

RBI cautious on response to gold import surge  Full Article 

Economic Corridor

Economic Corridor

China commits $45.6 billion for economic corridor with Pakistan  Full Article 

Overseas Funds

Overseas Funds

RBI says overseas borrowed funds can be parked with banks in India  Full Article 

Reuters India Mobile

Reuters India Mobile

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