Commodity prices mixed before Easter break

Commodity markets diverged this week as dealers took their leads from the unrest in Ukraine and data out of China and the United States, the world's two largest economies.

Many markets were shutting one day earlier than usual owing to a long Easter holiday weekend.

OIL: Prices were mixed as traders weighed escalating Russia-Ukraine tensions, which could affect energy supplies heading West, against news of an expected resumption of Libyan crude exports.

Futures were depressed in part by a surge in US crude inventories but won support from better-than-expected Chinese growth data, traders said.

Brokers Phillip Futures said events in Eastern Europe continued "to peg crude prices at elevated levels" as markets closely tracked Geneva talks on Thursday between Ukraine, Russia, the European Union and Washington.

Traders are concerned that any full-scale armed conflict in the region will disrupt supplies and send oil and gas prices rocketing because Ukraine is a major conduit for Russian gas to western Europe.

Russian President Vladimir Putin on Thursday left the door open to intervening in Ukraine, in a thinly-veiled threat that coincided with the crunch Geneva talks striving to de-escalate the crisis.

The oil market was also hit by news that Libya is preparing to resume oil exports for the first time in more than eight months, after autonomy-seeking rebels agreed to lift their blockade of eastern ports.

Libya's oil output is likely to quadruple from current levels and hit 1.0 million barrels per day by mid-June following the deal, OPEC Secretary General Abdullah El-Badri said last week.

In China, the world's biggest consumer of energy, the National Bureau of Statistics reported that the world's number two economy expanded 7.4 percent year-on-year in January-March.

That was slightly up on the 7.3 percent median forecast in a survey of 13 economists by AFP.

In the US, the Energy Information Administration's weekly oil inventory report showed commercial crude stocks jumped 10 million barrels in the week to April 11 -- far above the 1.5 million-barrel gain projected by analysts.

The rise was "the biggest one-week increase in US crude oil supplies in 13 years", Singapore's United Overseas Bank said in a note to clients.

A surge in US crude stockpiles is indicative of weak demand in the world's biggest economy and top oil consumer.

On Thursday, Brent North Sea crude for delivery in June traded on London's Intercontinental Exchange had jumped to $109.44 a barrel, compared with $107.78 for the May contract on Friday last week.

On the New York Mercantile Exchange, West Texas Intermediate or light sweet crude for May fell to $103.85 a barrel from $104.21.

- Metal market tracks China -

BASE METALS: China's growth data lent support to base, or industrial, metals as a winding down of trading for the Easter break prompted profit-taking.

"Sentiment was boosted by first-quarter GDP data from China, which was better than expected," said analysts at brokers Triland Metals.

Nickel extended recent gains on Indonesia's ban on exports of the metal that is used to make rechargeable batteries.

Indonesia in January imposed a ban on exports of mineral ore including nickel, copper and bauxite.

The move is one of a series of industrial policies pushed by nationalist politicians who argue that foreign firms reap an inordinate share of the profits from exploiting resources and business opportunities in the fast-growing Indonesian economy.

On Thursday on the London Metal Exchange, copper for delivery in three months fell to $6,648 a tonne, down from $6,692 on Friday of the previous week.

Three-month aluminium decreased to $1,875.50 a tonne from $1,895.

Three-month lead advanced to $2,143 a tonne from $2,124.75.

Three-month tin dropped to $23,445 a tonne from $23,563.

Three-month nickel rallied to $18,000 a tonne from $17,464.

Three-month zinc climbed to $2,071.50 a tonne from $2,056.75.

PRECIOUS METALS: Prices mainly fell, while the World Gold Council forecast that China's annual demand for gold could jump around 20 percent by 2017 as more of its increasingly wealthy population seek new ways to make money.

The forecast by the WGC comes after China became the world's largest gold-consuming nation in 2013, overtaking India.

Annual demand for gold in the form of jewellery, coins and bars is set to hit "at least 1,350 tonnes by 2017", the WGC said in a report on China.

That would represent a rise of nearly a fifth from the country's record consumption of 1,132 tonnes last year.

Gold, seen as a haven investment, had forged a six-month high at $1,392.22 an ounce in April as investors sought to shelter from Russia-Ukraine tensions before falling last week on profit-taking.

By Thursday on the London Bullion Market, the price of gold dropped to $1,299 an ounce from $1,318 on Friday of the previous week.

Silver retreated to $19.62 an ounce from $20.09.

On the London Platinum and Palladium Market, platinum decreased to $1,437 an ounce from $1,454.

Palladium gained to $801 an ounce from $794.

- Coffee prices slide -

COFFEE: Futures slid after coffee from the more than two-year highs hit the previous week due to fears of tight supplies following drought in top producer Brazil.

Commerzbank analysts said the "decline was triggered by technical selling, after the price (of Arabica traded in New York)failed at the resistance of 210 US cents per pound".

By Thursday on the ICE Futures US exchange, Arabica for delivery in July slumped to 191.80 US cents a pound, compared with 204.70 cents for the May contract on Friday of the previous week.

On LIFFE, London's futures exchange, Robusta for July dropped to $2,086 a tonne from $2,140.

SUGAR: Prices gained on tight supply concerns, also due to weather patterns in Brazil, the world's largest producer of sugar.

"The market is developing further concerns about El Nino affecting the Brazilian harvest," said Citi analyst Sterling Smith.

The UN weather agency this week warned that there was a good chance of an "El Nino" climate phenomenon in the Pacific Ocean this year, bringing droughts and heavy rainfall to the rest of the world.

El Nino occurs every two to seven years, when the prevailing trade winds that circulate surface water in the tropical Pacific start to weaken.

By Thursday on LIFFE, the price of a tonne of white sugar for delivery in August edged up to $469.60 from $468.10 on Friday of the previous week.

On ICE Futures US, the price of unrefined sugar for July rose to 17.60 US cents a pound compared with 17.05 US cents for the May contract.

COCOA: Cocoa futures steadied.

By Thursday on LIFFE, cocoa for delivery in July dipped to £1,857 a tonne compared with £1,861 for the May contract on Friday of the previous week.

On ICE Futures US, cocoa for July inched down to $2,984 a tonne from $2,985.

RUBBER: Prices in Kuala Lumpur extended losses on expected weak demand from major importer China, the world's second largest economy.

By Thursday, the Malaysian Rubber Board's benchmark SMR20 fell to 181.60 US cents a kilo from 181.85 cents on Friday of the previous week.

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