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World oil prices up, OPEC meeting in focus

Oil prices were up slightly in heavy, seesaw trading on Friday, giving back most earlier gains after news that major producers would consider additional supply a day after US President Donald Trump again blasted the cartel.

Investors grappled with whether the Organization of the Petroleum Exporting Countries and non-OPEC producers will offset a shortfall from Iran once US sanctions go into full force Nov. 4. Major producers are scheduled to gather in Algeria on Sunday.

Global benchmark Brent crude LCOc1 settled 10 cents higher at $78.80 a barrel. US light crude CLc1 rose 46 cents to $70.78 a barrel, more than $1 below the session high of $71.80. US crude rose 2.5 percent in the week and Brent posted a 0.7 percent weekly gain.

In early trade, supply worries sent Brent $1.00 higher to $80.12 per barrel. Prices retreated after a source told Reuters that OPEC and its allies were discussing the possibility of raising output by 500,000 barrels per day. The market again reversed course, with traders citing worries US crude would come under pressure in the fourth quarter as inventories build after driving season ends.

Prices jumped early after a report said OPEC and non-OPEC producers pumped less oil in August than July due to a drop in Iranian supply.

Gold prices fall over 1pc

Gold prices fell more than 1 percent on Friday as the dollar firmed against the British sterling and the euro after British Prime Minister Theresa May said the European Union must supply an alternative Brexit proposal.

China’s moves to boost domestic consumption also helped bolster the dollar rally driven by investor bets that the latest US-China trade salvoes were unlikely to dent global growth. The dollar’s status as the chief reserve currency makes it the prime beneficiary of US-China trade conflict, with the United States seen as having less to lose.

Spot gold lost 0.8 percent at $1,196.86 per ounce in the New York trade. During the session it touched its lowest since Sept 11 at $1,191.51. However, gold headed for a 0.4 percent weekly increase. US gold futures for December delivery settled down $10, or 0.8 percent, at $1,201.30 per ounce.

EU wheat steadies in late trade in line with Chicago

Euronext wheat futures steadied in late trade on Thursday in step with Chicago wheat that drew support from a rally in corn and soybeans. Benchmark December milling wheat on Paris-based Euronext was trading flat by 1623 GMT at 202.50 euros a tonne.

It had fallen to 201.00 euros in earlier trade after hitting a one week high on Thursday. Dry conditions in Western Europe, which are hampering winter grain sowings, were also supporting prices.

However, the overall winter grain area in the region was still expected to increase next season as farmers switch from sugar beet and rapeseed. Wheat was steady on the Chicago Board of Trade after strong gains over the last two sessions on the back of tightening global supplies. In Germany, cash premiums in Hamburg were little changed, with animal feed producers rather than exporters the main focus. Standard bread wheat with 12 percent protein for September delivery in Hamburg was offered unchanged at 3 euros over Paris December. Feed wheat in Germany’s South Oldenburg market for September/December was offered for sale well over milling wheat at around 215 euros a tonne, with buyers seeking 213 euros.

 

European palm oil down on bearish production and stocks outlook

Palm oil on the European vegetable oils market was lower on Thursday, following the weaker trend in Malaysian palm oil futures, which eased on expectations of increased production and growing palm oil stocks in both Malaysia and Indonesia.

Asking prices for palm oil were between $2.50 and $7.50 a tonne lower after Malaysian palm oil futures closed between eight and 17 ringgit per tonne down.

At 1630 GMT, CBOT soyoil futures were between 0.02 and 0.48 cents per lb higher, following a rally in soybeans on strong US export sales and due to short covering. EU rapeoil was mostly quoted between two and four euros per tonne lower on the back of a weaker dollar, which weighs on euro-priced products. Easier energy markets, which could reduce demand for vegetable oil by biodiesel producers, also weighed. Coconut oil was quoted between $2.50 a tonne down and $5 a tonne higher, underpinned by the weak dollar, which supports products priced in that currency. Palmkernel oil was offered between $10 a tonne up and $25 a tonne lower, tracking weakness in palm oil and because sellers were reducing prices to find buyers.

London copper pulls back as economic growth worries return

Copper ended two days of gains on Thursday as concerns resurfaced about the health of the global economy and higher US interest rates ahead of a central bank meeting. Investors widely expect the US Federal Reserve to increase interest rates next week, but future monetary policy remains uncertain.

Copper jumped to its highest in three weeks on Wednesday after a new round of US-China trade tariffs were not as severe as expected, but investors remained wary about the impact on global economic growth and copper lost steam on Thursday.

Benchmark copper on the London Metal Exchange closed down 0.6 percent at $6,082 a tonne. Copper has slumped 18 percent since touching a 4-1/2 year peak of $7,348 in June but has recovered 5 percent from a one-year low of $5,773 in August.

Corn, soy up 2pc as export data sparks short-covering

US corn futures climbed more than 2 percent on Thursday, hitting a one-week high as higher-than-expected weekly export sales and prospects for US harvest delays sparked a round of short-covering, analysts said.

Soybeans also advanced while wheat futures were mixed in choppy trade. As of 12:50 p.m. CDT (1750 GMT), Chicago Board of Trade December corn was up 7-3/4 cents at $3.53-1/2 a bushel after reaching $3.56-1/4, its highest since Sept. 12. November soybeans were up 24 cents at $8.54 a bushel while December wheat was down 1/4 cent at $5.22-1/4 a bushel. Corn led the way up after the US Department of Agriculture reported weekly export sales of US corn at nearly 1.4 million tonnes, topping a range of trade expectations. Through its daily reporting system, the USDA also said that private exporters sold an additional 160,020 tonnes of US corn to Mexico. Weekly US soybean export sales topped 900,000 tonnes, surpassing trade expectations and helping to buoy the futures market, two days after the most active CBOT soybean contract hit its lowest in 10 years.

NZ dairy production off to a strong start

Favorable weather has seen the dairy season get off to a strong start, with production rising by 4.7 percent for the month of August compared with the same month last year, according to data from the Dairy Companies Association of NZ (DCANZ). DCANZ said season-to-date milk production was up by 5.5 percent and for the 12 months to August, production was up 0.5 percent.

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