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SHORT INFORMAL MARKET REPORTS

The following are the specimens of short market reports taking into account various commodities including sugar, palladium, nickel, wheat, wool, tin, coffee, aluminum, copper, zinc, coca, maize, and rubber. The reports also cover gold and money markets.

 

SPECIMEN # 1

LIFFE, January 4, 200x : On the LIFFE, the London futures market, the price of a ton of wheat for December delivery slipped to 78.75 pounds from 79.25 pounds the previous week. News of good harvest in the US made a dent in the market.

 

The passage is related to the weekly report of London International Financial Futures Exchange issued on the 4d January, 200x. The report takes into account the performance of wheat during the dated period. The wheat saw a setback when its price fell to 78.75 pounds a ton from 79.25 pounds the previous week for delivery in December. Wheat faced the fall on the news of expected good harvest of American wheat which may glut the market bringing a further fall in prices. Hence the wheat market is facing depression.

 

SPECIMEN # 2

London, Jun 15: Nickel ticked higher when Russian giant Norilsk Nickel, which has 20 percent of global supply, said that modernization over the next two years would crimp output, but the prices retreated as the market treated the statements with skepticism.

Three-month nickel prices stood at $5,110 a ton on Friday afternoon, down from $5,230 a week earlier.

The excerpt has been taken from the weekly report of the London Commodity Exchange issued on June 15, 200x, taking into account nickel. The market for the metal was easy closed at $51 10, a ton on Friday. The metal had closed at $5230, the previous week. The negative difference of $120 on Friday over the last week shows the troubled nickel market. The news from Norilsk Nickel, a Russian giant corporation that shares 20% of the world supply of nickel, that the company is undergoing a modernization plan over the next two year, did bring good impact on the market for a while and then prices started falling.

 

The reason to the situation was suspicion of the market players about the truth of the news. If the Russian nickel giant really goes under modernization the supply will fall short pushing the prices substantially high. The players finally unheeded to news, continued offloading their holdings, pushing the price downward.

 

SPECIMEN #3

New York, Jan 5: Palladium prices shot up this week amid signs of health in the US auto sector and the first flickers of concern over Russian exports over the traditionally volatile New Year period.

Palladium was quoted at $415 an ounce from $338 the previous week.

 

This excerpt has been taken from the weekly report issued by the Commodity Exchange.New Yorkon January 5, 200x, describing the tendency and performance of COMEX,New York. The report paints cheerful conditions in the trade of palladium which is precious metal heavily used in American auto industry and hence theUSAis the largest buyer of this metal. Since reports are pouring in on the healthy signs in theUSauto industry, the car production is destined to soar. The greater production volume will need more palladium. As such, the prices are up. There is another governing count. It is Russian car industry whose exports are likely to fall which is the common case at the start of New Year. The poor export from Russian means a greater market for American cars that will result in their greater production. Thus there will be additional demand for palladium, hence, its prices are heavily moving up.

 

Palladium closed at $ 415 an ounce while it closed at $338 the last week showing a steep rise of $77 an ounce over the last week.

 

SPECIMEN # 4London, Dec 2: Sugar prices held on to recent gains amid concern about a weak harvest of sugar beet inEurope, but struggled to push higher for technical reasons.

 

On the LIFFE market inLondon, a tonne of white sugar for March delivery stood at $244.50 on Thursday from $244.00 a week earlier.

 

The passage tinder consideration has been quoted from the report issued by London Financial Futures exchange dealing with sugar. The report mentions that LIFFE on December 2, 200x has been witnessing upward tendency in sugar prices for the last many sessions. It is the expected poor harvest of sugar beet inEuropethat has sent the prices higher. Poor harvest will result in decline in supply and hence rise in prices. Prices also shot up for technical reasons which, refers to buying to settle short sates. Sort sales are futures sales, under which first sales are made then purchases after sometime in future or at the time of settlement. So, the technical reasons prompted the prices to move upward. On Thursday, the sugar prices on the LIFFE stood at $244.50 while it had closed at £244.00 a ton a week ago. The market shows consistent increase in prices.

 

SPECIMEN # 5

Australian wool prices rallied to the highest level since early October as buyers stocked up ahead of the Christmas break. The Eastern Index gained to 750 cents a kilo from 713 cents the previous week.

 

The excerpt belongs to the weekly report issued by Australian Wool Exchange on April 10, 200x. The report depicts a bright picture of the wool as it shot up to 750 American cents a kilo from 713 cents the previous week The 750 cents a kilo was the highest price quoted since early October. The rising price is the upshot of heavy purchases of wool before the market is closed tong for Christmas and New Year holidays. The Eastern Index, a standard used to measure the performance of the Australian Wool Exchange rose by 37 cents which is a substantial increase.

 

SPECIMEN # 6

Chicago, Oct 1: Wheat prices held steady despite better than expected export figures. In Chicago a bushel of wheat for December delivery stood at 273 cents on Thursday against 273.25 cents the previous week.

 

This excerpt has been taken from the report of Chicago Wheat Exchange issued on October 1, 200x. According to the report the prices of futures wheat did not show any significant change and showed stable tendency. The market players were hopeful of an increase owing to far higher export figures than expected. Their hopes, however, did not materialize, the prices for December delivery stuck at 273 cents a bushel against 273.25 cents over the previous week.

 

SPECIMEN # 7

Chicago, Oct 15: A bushel of maize in Chicago for December delivery rose to 205.5 cents from 199.75 cents a week earlier.

 

This extract has been taken from the report issued by Chicago Maize Exchange on October 15, 200x. The report suggests that the maize futures prices went up because of high demand arising out of heavy export orders. The prices moved up from 199.75 a bushel to 205.5 cents for December delivery over the last week.

 

SPECIMEN # 8

Coffee prices inched higher but remained under pressure from the weight of surplus swamping the market. On the LIFFE, Robusta quality for .January delivery rose to $403 a ton from 392 a week earlier.

The extract belongs to the report of theLondoncoffee market, issued on October 1, 200x. The report hints at the prevailing condition affecting the cof1e market. Showing the oversupplied situation, the coffee managed to move up, although by a little margin. On the London Financial Future Exchange (LlFF1), the price of Robusta, a particular grade of coffee, moved u1 to $403 a ton for January delivery from $392 during the previous week.

 

SPECMEN # 9

New York, Sep: The dollar slid Friday in the wake of data showing the US jobless rate jumped to a four-year high in August, dashing hopes of a US economic recovery.

 

The Euro rose to 50.9074 from 50.8965 late Thursday. The dollar fell to 120.07 yen from 120.99 overnight in New York.

 

The US jobless rate surged to 4.9 per cent In August, well above market expectations and the highest since September 1997, official figures showed. The US economy dumped 113,000 non-farm payroll jobs in August.

 

The excerpt taken from the report of the money market, New York, suggests the fall of dollar both in terms of euro and yen in the perspective of cuts in the US in August 2001, the downturn in the American economy has resulted in the cut of 113,000 jobs relating to commerce and industry thus pulling the unemployment up at 4.9 per cent far above the expectations and highest since September 1997.

The Euro (the joint currency of the European Union) rose to $0.9074 from $0.8965 as quoted late Thursday, the dollar lost to yen at 120.07 from 120, 99 the same day.

 

SPECIMEN # 10

Concern over supply at major US aluminum smelter hit by a power cut meanwhile stoked the fires under the aluminum price, but now the market is comfortable that it will be a fairly minor loss of output. Aluminums prices fell to $1370 a ton from 1, 446 a week earlier.

 

The passage has been taken from the weekly report issued by COMEX,New York, February 12, 200x. The report deals in aluminium business at the exchange. It says that the market was under pressure from the likely cut in the production of the metal because the refinery (snicker) where it is refined was facing acute electricity shortage. The fact led to the passing increase in prices. According to the latest situation, the most of the production has been restored and hence the supply sending the prices low at $1370 a ton as against $1446 a ton the previous week.

 

SPECIMEN # 11

London, Dec 10: London FTSE 100 index fell to a new three year low point of 5068.5 points at one stage before closing at 5070.3 points, down 2.57 per cent on the day.

In Frankfurt, the DAX sank to a new two and a half year low, closing at 4730.67 points, down 2.7 per cent.

 

The Paris CAC 40 index meanwhile slid another 1.5 per cent to 4413.51 points, after falling earlier to 4396.6 points. The big fear was that concern over a weak job market could lead consumers to pull back on Spending, until now one of the strongest legs of the US economy.

 

There is a big disappointment among the investors about the outlook for corporate earnings, given fears about declining consumer spending amid the prolonged economic downturns.

 

The extract has been take from the combined report on London, Paris and Frankfurt Stock Exchanges issued on December 10, 200x. All the three stock exchanges suffered setbacks with the American weak job market being the main reason. Increased joblessness will bring down consumer spending that in turn will reduce the corporate profits affecting all countries economies around the world.

 

The FTSE 100 index first fell to as low as 5068.60 points but recovered 1.7 points at 5070.30 at the close. The closing points were down 2.57 per cent over yesterday. It may be noted that FTSE is the benchmark (standard) of the London Stock Exchange covering 100 blue chip companies.

The DAX index of the Frankfurt Stock Exchange dropped to 4730.67 points, the lowest in two and a half years. The total decline was 2.97 per cent.

It is to be noted that the DAX index is the benchmark containing 100 blue chips companies to monitor the average performance of the Frankfurt Stock Exchange.

 

The CAC index of the Paris Stock Exchange plunged 1.5 percent to 4413.5) points. Before closing it had dropped to as low as 4396.60 points but recovered 16.91 points during the day.

 

It is to be remembered that the CAC is the name of the Paris Stock Exchange’s index representing blue chips companies measuring the daily average working of all companies listed at the exchange.

 

SPECIMEN # 12

Copper prices cased to S1491 a ton front 1,553 the previous week, as the market took a more level-headed view of recently announced production cutbacks. There bad been some supply side concerns particularly in copper where people were concerned with some further production cuts being announced, but they haven’t actually transpired

 

The extract has been taken from the weekly report dealing in copper issued by London Commodity Exchange on June 10, 200x. The report takes into account copper prices that fell to $1491 a ton from $1553 the previous week thus showing a negative difference of $62 over the previous week. Although, the market was filled with the news of cuts in the copper production, the dealers didn’t attach importance and raised doubt to it since the other day too such a rumor was circulating but the supply side remained intact. Unbelieving the news for the second time, they continued offloading their position sending the prices down by $62 over the last week.

 

SPECIMEN # 13

Three-month tin prices fell $128 to S4092 ton, zinc cased nine dollars to $775 from S790 the previous week in the aftermath of continuing steep economic slowdown the world over.

 

The piece has been taken from the weekly report of London International Financial Futures Exchange dealing in tin and zinc. Mentioning the 3-month futures it shows that the prices of both tin and zinc fell to $4092 and $775 respectively as the world is experiencing economics slump. Tin prices shed $ 128 while zinc $15 over the previous week1 both the declines are substantial.

 

SPECIMEN # 14

Hong Kong, Sept 19: Hong Kong gold prices closed higher on Wednesday at US $289.25 — $290.25 an ounce, against the previous day’s closing rate of $288.00 — $288.50. The market opened at $28750—$288.00

 

Explanation

The above extract has been taken from the report of September 19, 200x, issued by theHong Konggold market. According to the report, the market registered an upward movement of the gold prices. Although the market on Tuesday closed lower at $288.00 — 288.50, Wednesday showed a better performance with heavy demand being the sole reason. The market under reported day opened at $ 287.50 -. 288.00 And at the close had reached at $290.25 an ounce. The increase of around two dollars over yesterday is definitely significant.

 

Opening rate

$287.50 — 288.00 per ounce

 

Closing rate

$289.25 — 290.25

 

SPECIMEN # 15

Cocoa prices fell heavily this week after recent gains linked to weak shipment numbers in Ivory Coast, the world’s number one cocoa bean producer.

 

The excerpt has been derived from theLondoncocoa market report issued on April 3, 200x suggesting weak situation on the market. The prices of cocoa came down heavily as the supply fromIvory Coastgot restored. Earlier, the cocoa prices had heavily gone up on the pretext of fall in the number of shipments temporarily creating short supply that sent the prices heavily high. However, the prices steeply came down as the supply of cocoa fromIvory Coastrestored. It will not be out of place to mention that Ivory Coast an African country, is the largest producer of cocoa beans, and any hurdle in supply from it sends the cocoa prices extremely high.

 

SPECIMEN # 16

Rubber prices weakened again because of a sharp drop in the raw material prices in Thailand. In Kuala Lumpur, the RSS Index ended Thursday at 1.955 ringgit per kilo from 2.025 ringgit the previous week.

 

The cutting has been has been taken from the report issued by Kuala Lumpur Rubber Exchange for the week ending May I, 200x. The weekly report indicates that the Kuala Lumpur Rubber Exchange index known as RSS Index went down Thursday at 1.955 riuggit. The Malaysian currency, from 2.2025 ringgit per kilo over the previous week. The rubber continued to weaken as it did the last week. But when compared with the last week it further moved down on Thursday and hence previous week proves to be better. The factor operating behind the depression in prices is the sharp fall of rubber prices inThailandmarkets.

 

SPECIMEN # 17

Chicago Maize Exchange, October 15, 200x: US maize prices picked up thanks to a recent surge in US exports.

A bushel of maize in Chicago for December delivery rose to 205.5 cents from 199.75 cents a week earlier.

 

This extract has been taken from the report issued by Chicago Maize Exchange on October 15, 200x. The report suggests that maize futures prices went up because of high demand arising out of heavy export orders. The prices moved up from L99.75 a bushel to 205.5 cents for December delivery over the last week. The report is related to futures trading.

 

SPECIMEN # 18

Chicago Wheat Exchange, October 1, 200x: Wheat prices held steady despite better-than-expected export figures. In Chicago, a bushel of wheat for December delivery stood at 273 cents on Thursday against 273.25 the previous week.

 

This excerpt has been taken from the report of the Chicago Wheat Exchange issued on October 1, 200x. According to the report, the prices of futures wheat did not show any significant change and stayed displaying stable tendency. The market players were hopeful of an increase owing to far higher export figures than expected. Their hopes, however, did not materialize. The prices for December delivery stuck at 273 cents a bushel against 273.25 over the previous week.

 

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