New York : A weak dollar drove copper and oil up at the end of last week and strong export demand for US wheat sent the grain to 5-1/2 months highs, helping commodities end the week higher despite a sell-off in the previous session.
The 19-commodity Reuters-Jefferies CRB index finished up 0.6 per cent on the day and 0.3 per cent on the week after niche commodities such as cocoa, coffee and cotton rose as well.
Cocoa hit 8-1/2-month peaks a second day in a row; arabica coffee rallied to within sight of a 13-1/2-year peak; and cotton finished limit up for the day, all in New York.
While the dollar's drop to a two-month low against the euro indeed helped a broad range of commodities last week, investors were also encouraged by positive economic data and the better outlook for materials like copper and wheat, analysts said.
Realty focus
"We have had pretty good economic data this week in the US and in Europe," Bill O'Neill at broker LOGIC Advisors' said in a commentary on copper. "The market is focusing on the reality that demand remains very strong and is going to continue to be strong throughout this year." US economic data last week showed a surge in retail sales in December and the biggest decline in weekly jobless claims since February. Out of Europe, Germany reported business morale rose to its highest level in 20 years in January.
Next week, investors are expected to look out for US consumer confidence data due on Tuesday and different indicators to be issued by the Eurozone. Copper prices — down as much as 5 per cent from all-time record peaks at $9,781 (Dh35.974) per tonne in London this week and $4.4980 per pound in New York earlier this month.
