Harvest Disturbance Crutch Commodity Prices

JAKARTA: The price of commodities throughout October to increase along with the high demand. However, at the same time there was failure of harvest in some producing countries due to bad weather, thus weakening the supply
Jobes Dow commodity index-UBS Commodity Index, an index of 19 commodity contract, rising 3.24% the period of October.

Based on the release of Business received the largest increase noted during the last month noted that the sugar price index rising 20.19% compared to the actual period of August 2010.

The second largest increase recorded price index of cotton and zinc which each rose 17.45% and 14.18%. The increase in sugar prices was triggered some supply constraints in Brazil, a leading producer of sugar in the world, due to crop failure in some areas.

Throughout October, the number of traders raise the bid above the price of sugar up to its highest level since February 2010.

International sugar organization data (International Sugar Organization) indicates an increase in demand for sugar by 1.7% this year.

This shows that the ratio between supply and consumption fall to the lowest two decades of the 32%. For the period throughout 2010 until the end of October, the Dow Jones Commodity-UBS rose 4.06%.

The largest increase was contributed cotton price index, which climbed 58.07% triggered an increasingly limited supply. U.S. Department of Agriculture, USDA, lowering the estimated supply of cotton for the 2010/2011 period amounted to 772,000 bales.

This supply shortfall triggered reduced production in some producer countries are estimated to minus 273,000 bales of 117 million bales to 116.7 million bales. On the other side of the world consumption is predicted to go up 239,000 bales from 120.5 million to 120.8 million bales bales.

`With world cotton consumption is increased when the supply decreases, causing the stock to consumption ratio decreased to 37% from 37.7%, its lowest level since 1993/1994,` said Dow Jones Indexes Public Relations Christine Marie Nielsen.

By : Elisabeth S. Berliana Source : Bisnis.com