[B] NY Precious Metals Review: Jun palladium up 5.9%, others quiet Updated Wed 3/8/2000 15:53 EST
By Melanie Lovatt, Bridge News New York--Mar 8--NYMEX Jun palladium futures settled up $39.20 or 5.9% at $704.70 per ounce after a 1-week high of $715. Palladium jumped higher on the London PM fix and extended its climb on NYMEX as buy-stops were triggered. Prices were also supported when NYMEX stocks were reported down 14,500 ounces or 34% to 28,400 ounces, said traders. Other precious metals stayed subdued. * * * One trader noted that palladium prices climbed as one buyer tried to secure 8,000 ounces of material on the London fix, but was unable to attract any sellers. At the PM fix it climbed to $700 per ounce, which was up from the $675 seen at the AM fix. The trader said that the market was being pushed around because it remained very thinly traded. On NYMEX, one trade house was buying for consumers and buy stops were triggered, pushing it higher still, noted another trader. Meanwhile, the slip in palladium warehouse stocks helped prices somewhat, said one market observer, but noted that it was not too much of a concern given that open interest in nearby March has recently fallen. On Tuesday, Mar palladium open interest was 22 contracts, or 2,200 ounces, which is less than the 28,400 ounces of warehouse stocks. While Russian palladium and platinum export quotas have now been signed, and both metals have consequently seen some downwards pressure, many players are too nervous to go short fearing that despite the signing of the quotas, there could still be further export delays. Traders said that the price is unlikely to slip back until players are sure Russian material is actually hitting the marketplace. Shipments of platinum and palladium are expected to arrive in the next week or so. Another important date for palladium is a TOCOM board of directors meeting on Mar 15, said Bill O'Neill, analyst at Merrill Lynch, noting that the market will find out whether palladium trading restrictions will be lifted. After the recent volatility and huge jump in palladium prices, they were fixed at the settlement levels of Feb 23 except for Feb 2001 contract and will stay this way at least until the meeting. David Meger, senior metals analyst at Alaron Trading said that platinum and palladium are "lacking a sense of direction" and are markets "caught between lack of supply and potential Russian shipments." |
