Commodities Report: December 16th, 2010
Copper continues to back away from record highs, with the most heavily traded March contract down about $0.02 this morning to $4.11 as stockpiles grew and speculation returned that China will raise interest rates to help control inflation and keeping a lid on future demand.
The contract reached a record $4.22 on Tuesday.
Crude oil also is easing from its recent highs as cold weather in the U.S. starts to moderate, reducing demand for heating oil. At last look, the January contract had nearly given back all of yesterday's gains, falling $0.31 to $88.31. Oil rose $0.34 cents in New York yesterday after the Energy Department reported crude inventories fell 9.85 million barrels last week to 346 million. Refiners operated at 88 percent of capacity, the most since September.
Gold likewise is down slightly today, falling $1.70 from yesterday's settlement at $1,386.20 an ounce. Overall, gold has gained 26 percent this year. propelled as an alternative to weakening currencies.
In company news, Agnico-Eagle (AEM) last night forecast an 18% increase in gold production next year, rising to between 1.13 million ounces and 1.23 million ounces. Total cash costs are expected to be in the range of $420 to $470 an ounce. The miner also increased its dividend.
Penn Virginia Resource Partners L.P. (PVR) moved to acquire additonal coal reserves in Kentucky and Tennessee from Begley Properties LLC for $97.25 million.
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