Commodities Rise for Seventh Day to Two-Year High, Led by Cotton – Bloomberg.com

Commodities Apr 08, 2011 No Comments

Commodities rose for a seventh day to a two-year high, led by cotton and silver, on optimism about economic recovery and on a weaker dollar. Gold and tin climbed to records.

The Standard & Poor’s GSCI Spot Index of 24 raw-materials futures reached 753.89 points, the highest level since Aug. 4, 2008. It was up 1.1 percent at 753.54 at 10:45 a.m. London time, for a weekly gain of 3 percent, on course for the biggest increase in five weeks. Silver for immediate delivery touched $40.235 an ounce, and cotton reached $2.124 a pound.

“The move today is just another step in the longer-term story,” said Eugen Weinberg, head of commodity research at Commerzbank AG in Frankfurt. “Strong industrial demand, high economic optimism, a weaker U.S. dollar and ample liquidity continue to support commodity prices.”

China, the world’s biggest copper consumer, can expand at 8 percent a year for the next two decades, the World Bank said March 23. Industrial use of silver may climb to a record this year, researcher GFMS said yesterday. The Federal Reserve last month stuck to plans to buy $600 billion of Treasuries, and the Bank of England yesterday maintained the size of bond purchases.

via Commodities Rise for Seventh Day to Two-Year High, Led by Cotton – Bloomberg.com.

Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.