COMMODITIES-Oil sinks with Wall Street; coffee tumbles too
* 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.
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.
- Tweet this
- Share this
- Digg this
Trending On Reuters
Prime Minister Narendra Modi has taken direct control of a project-monitoring body to fast-track investments worth almost $300 billion and revive manufacturing in the country, two officials with direct knowledge of the matter told Reuters. Full Article