Commodities Erase This Year’s Gains in Selloff

Commodities Sep 22, 2011 No Comments

CommoditiesCommodities erased this year’s gains after the U.S. Federal Reserve said the world’s biggest economy faces “significant downside risks,” boosting speculation raw-material demand will falter.

On the London Metal Exchange, three-month copper fell as much as 6.6 percent to $7,750 a metric ton, the lowest price since Sept. 22 last year. Prices in London have dropped 24 percent from the record $10,190 on Feb. 15, qualifying for a bear market if they close at or below $8,152.

Copper may drop to as low as $7,000 as concerns grow about the global economic slowdown, Im Byeong Chloe, an executive at South Korea’s Public Procurement Service, said on Sept. 21. The contract hasn’t traded below $7,000 since July 2010.

Gold for December delivery declined as much as 4.3 percent to $1,731.20 an ounce on the Comex in New York. Immediate- delivery gold fell as much as 2.9 percent to $1,730.28 an ounce.

Silver futures for December delivery dropped 8.4 percent to $37.06 an ounce on the Comex.

November-delivery oil fell as much as 6.6 percent to $80.25 a barrel, the lowest price for a most-active contract since Aug. 19, on the New York Mercantile Exchange. Wheat for December delivery fell as much as 3.3 percent to $6.45 a bushel on the Chicago Board of Trade.

via Commodities Erase This Year’s Gains in Selloff – Bloomberg.

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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.

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