A Chilling Winter for Commodities
Shares of Peabody Energy Corp, the world’s largest coal producer in private sector, collapsed 10.5% in New York last night, dragged down by falling crude oil, which touched US$60 per barrel. Arch Coal also fell 5.21%, while BHP Billiton followed with a further correction of 1.53% in Sydney this morning.
In GOLD They Trust
Gold for February delivery declined 0.29% to US$1,228 per ounce this morning, after rising 3% in first 2 days of this week. Gold rose as the dollar dipped and equities fell around the world, reviving investor appetite for a protection of wealth, Bloomberg reported. Companies in this report: J Resources, Aneka Tambang, Freeport Indonesia, Sumatra Copper & Arc Exploration.
Palm Oil Journal: Weaker Output
Palm oil prices and plantation shares seem to continue following crude oil movement. Weaker output reported by Malaysian planters failed to boost sentiment. The benchmark February 2015 contracts of crude palm oil (CPO) dropped 2% to RM2129 per ton on the Bursa Malaysia Derivatives Tuesday (Dec 9). Falling crude oil to below US$63 per barrel contributed to the downfall.
Further Pressures on Coal Industry
Shares of coal producers were mixed worldwide Tuesday. Arch Coal and Peabody Energy surged 8.43% and 4.31% respectively in New York Tuesday morning, even though crude oil dropped to below US$63 per barrel. Earlier in Asia, Shenhua, one of the world’s largest producers, lost almost 3% in Hong Kong. Indonesian coal producers, meanwhile, suffer from almost 20% fall of coal reference price for December 2014.
Oil Rebounds, Coal & Palm Oil?
Crude oil returned to above US$69 per barrel in New York Monday night, lifting shares of almost all oil and gas producers worldwide. Unfortunately, shares of coal producers continue to drop with both Arch Coal and Peabody Energy losing 8.1% and 7.5% respectively in New York.
When Oil Falls 10% to US$66
Nymex crude oil fell sharply by 10.17% to US$66.26 per barrel Friday (November 28). Natural gas for February 2015 delivery also fell 5.75%. They dragged down Dr Copper 3.38%, while silver crashed 6.4%.
Market Response to Oil Below US$69
Nymex crude oil for January 2015 delivery collapsed 6.8% to US$68.7 per barrel in New York Thursday night, dragging down all other commodities. Natural gas and heating oil fell 3.44% and 4.42% respectively.
Revisiting Agritrade Resources
Shares of Agritrade Resources Ltd, controlled by Indonesian businessman, in the stock exchange of Hong Kong ended lower by 1.5% Thursday to HK$1.99. Still, the stock is among the top gainers in resources sector with almost 300% gain since February 2014. At the current price, Agritrade has market capitalisation of HK$2.13 billion.
Crude Oil Below US$71, Coal?
Nymex crude oil fell sharply by 3.84% to US$70.86 in New York Thursday morning, dragged down energy and commodities stocks. BP Plc fell 2.61%, while Husky Energy lost 5.7%. How about thermal coal and related stocks?
Coal Journal: Speculation on Energy Prices
Arch Coal collapsed 8.66% in New York last night, dragged down by the falling of crude oil to US$74 per barrel. Peabody Energy, the world’s largest producer in private sector, also dropped 1.52%.