Platinum, Palladium Soar
Source: Associated Press
Platinum futures stormed to a nearly 10-year high and palladium hit its most expensive price ever Wednesday on the New York
Mercantile Exchange as the clamor continues for metals kept in tight supply by Russia.
In other commodity markets, crude oil and heating oil fell sharply and pork bellies barreled more than 2 percent higher.
Prices for platinum and palladium, both in big demand for industrial use, have been building steadily during Russia's lengthy
absence from the market for political and bureaucratic reasons. The Russians are the world's No. 2 producer of platinum behind
South Africa and No. 1 in palladium.
But while Russia's return to both markets in force has been expected for weeks, investors remain skeptical and prices keep
spiraling higher as a result.
Platinum for April delivery rose 3 percent Wednesday on the New York Mercantile Exchange, settling up $13.30 at $466.20 an
ounce -- the highest since 1990. March palladium rose $9.70 to $502.25, the latest in a series of all-time highs reached in recent
weeks.
Reports out of Moscow indicate that acting Russian President Vladimir Putin is on the verge of signing quotas that would allow
platinum deliveries to start this month. Palladium sales also are expected to resume in large numbers soon.
But false alarms in the past have traders holding up on their "sell" orders for now.
"What Russia says and what Russia does, we've learned from experience to be two different things," said David Meger, senior
metals analyst for Alaron Trading Corp. in Chicago.
Meanwhile, platinum is being sought after by various industries and the automotive industry in the United States and Japan is
eager for more palladium, which is used to make catalytic converters. So prices continue to be dictated by tightening demand.
"Really there's nothing new" to drive prices, said Meger. "This situation has not changed much over the last several weeks."
Crude retreated on concern that evidence of the latest drop in U.S. supplies would prompt a response by the United States or
world oil producers to replenish inventories.
March intermediate crude fell 67 cents to $27.55 a barrel; March heating oil fell 1.66 cent to 75.53 cents a gallon; March unleaded
gasoline fell .99 cent to 76.68 cents a gallon; March natural gas rose 6 cents to $2.759 per 1,000 cubic feet.
In London, March Brent crude fell 46 cents to $25.92 on the International Petroleum Exchange.
Frozen pork bellies made the latest in a series of surges on the Chicago Mercantile Exchange after the latest data showed that
inventories were down 40 percent compared with a year ago.
March pork bellies rose 2.15 cents to 92.05 cents a pound. |
