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*Mo price climbing again...KR
From: Go Desk
Sent: Tuesday, May 29, 2007 6:28 AM
To: Canaccord - Internal Research Distribution
Subject: Morning Commodities Summary - Tuesday May 29, 2007
Importance: High
Morning Commodities Summary - Tuesday May 29, 2007
Commodities Table (Figures in USD)
Change Last
Gold COMEX +4.60 659.90/ounce
Crude Oil NYMEX -1.14 64.06/barrel
Natural Gas NYMEX -0.05 7.59/MMBtu
AECO C Hub Spot -0.18 6.46/MMBtu
Heating Oil NYMEX -0.03 1.91/gallon
Silver COMEX +0.08 12.94/ounce
Nickel Spot LME +0.82 22.71/lb
Tin LME 3-month +0.02 6.30/lb
Zinc LME 3-month +0.03 1.65/lb
Lead LME 3-month +0.05 1.01/lb
Coal Big Sandy +0.00 44.50/tonne
Aluminium LME +0.02 1.27/lb
Copper COMEX -0.03 3.29/lb
Uranium NYMEX +0.00 134.90/lb
Molybdenum Oxide +1.50 33.50/lb
Cobalt Spot -0.30 29.05/lb
Titanium Unprocessed +0.00 2.97/lb
Lumber OSB 7x16 -2.00 153.00/1,000 sqft
Corn CBOT -0.04 3.73/bushel
Wheat CBOT -0.04 4.97/bushel
Soybean CBOT -0.04 8.08/bushel
Lean Hogs MERC -0.00 0.75/lb
Sugar MERC -0.14 9.28/lb
Summary
Crude oil is off $1.14 to $64.06pbl (range is 64.01 to 65.24). Weakness
in crude is due to refining capacity coming back on line (Valero plans
to restart its 170,000 bopd Sunray, Texas refinery at noon today; the
restart will last through 6/1) coupled w/ Nigerian oil workers ending a
2-day strike. Today is the expiration of the June natural gas contract
(nat gas is off a 5 cents to $7.59mbtu; July is off a dime to
$7.70mbtu). With hurricane season kicking off this week, nat gas
weakness is likely to be shortlived (experts at the NOAA Climate
Prediction Center are projecting a 75% chance that the Atlantic
Hurricane Season will be above normal this year-showing the ongoing
active hurricane era remains strong). Heating oil is off 3.23 cents to
$1.9068/gal while RBOB gas is off 2.81 cents to $2.3756/gal. July gas
cracks are $31.43 (down from $31.84 on Fri). Bloomberg reports Libya,
holder of Africa's largest oil reserves, created a special force to
protect its petroleum facilities, after terror attacks against such
installations in other oil-producing nations (note that today Nigeria's
new gov't moves into office amid continued miliant unrest). Refining co
Holly Corp (HOC) boosts its regular dividend from 10cents to 12 cents
(other refiners may do the same since free cash flow in the sector is in
orbit). Chevron (CVX) will spend $2.5 bln on biofuels technology through
2009...
Peru Copper (CUP) announced that the previously reported exclusivity
period granted to a third party to facilitate discussions, has expired
without reaching any agreement on price or terms (this may weigh on the
stock which ran 10% on Friday on speculation a sale was imminent).
Copper inventories on the LME fell for the 7th day in a row to levels
not seen since late Oct. Chile's Codelco, the largest producer of copper
in the world, may face a worker strike by June 9th over wages (note:
Codelco mgmt is already trying to nip this in the bud but if a strike
occurs you can bet that copper prices will rise considerably; this fear
should limit downside for copper prices; copper off 3.2 cents to
$3.2880; support lies at $3.2693). Nickel advanced $550 to $46,850 a ton
as Canadian nickel miner LionOre Mining said yesterday its forecast
output of 44,300 tons this year will be cut by 2.9% due to production
delays at the Maggie Hays underground mine in Australia. Gold is up
$4.60 to $659.90 an ounce on the COMEX as the euro strenghtens vs the US
dollar thus making gold a nice alt investment (a plethora of economic
data this week should make gold prices extremely volatile this week; any
data that points to the Fed not raising rates should be viewed as
bullish for gold prices). Platinum prices hit a 5-week low in London on
slowing demand for the new ETF. There are concerns that an ETF for the
metal in the U.S. will face a lot of opposition from manufacturers.
Sources: Bloomberg, Briefing.com, Canaccord Adams, Dow Jones,
StreetAccount, Ux Weekly, WSJ
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