COMMODITIES : Platinum Prices Soar on Big Buying in Japan

Prices of platinum futures leaped more than $12 an ounce Tuesday on the New York Mercantile Exchange in a rise that analysts said was driven by heavy buying by Japanese investors.

On other markets, other precious metals retreated slightly while copper gained, cattle futures slid lower, pork futures were mostly higher, grains and soybeans were mixed, energy futures were mixed and stock index futures advanced.

Platinum’s price is quoted in dollars on world markets, so the dollar’s relative weakness against the yen has made platinum more affordable in Japan, where the metal is highly prized in jewelry and growing in popularity as an investment metal.

Japanese buying of platinum and platinum futures was heavy Tuesday as the dollar lost ground against the Japanese yen and European currencies.

“It’s like they’re parking some of their money in platinum,” said Bette Raptopoulos, metals analyst with Prudential-Bache Securities Inc. in New York. “Since the dollar is soft, it makes it a bargain.”

Platinum for delivery in January settled $12.60 higher at $563.20 an ounce. Concerns about tight supplies have lifted platinum’s price by more than 12% since Sept. 30, when the January contract settled at $502.50.

Gold, Silver Ease

Gold and silver futures retreated in lackluster trading on New York’s Commodity Exchange. European markets were closed Tuesday for All Saints Day, a religious holiday, which contributed to the quiet tone on a number of U.S. commodities markets.

Gold settled $1.10 to $1.40 lower, with December at $414 an ounce; silver was 1 cent to 1.4 cents lower, with December at $6.335 an ounce.

Comex copper futures finished only moderately higher but posted new life-of-contract highs for several delivery months and reached a new all-time high of $1.485 a pound for spot delivery before pulling back slightly before the close.

Copper settled 0.40 cent to 1 cent higher, with December at $1.419 a pound and the spot November contract at $1.484 a pound.

Live cattle futures prices fell sharply on the Chicago Mercantile Exchange, reversing Monday’s strong gains on speculation that demand for beef was weakening. Feeder cattle also finished lower.

Hog and pork belly futures ended mostly higher, reflecting speculation that the cash hog market had reached a seasonal bottom, said Thomas Morgan, president of Sterling Research Corp., Arlington Heights, Ill.

Soybeans Steady

Live cattle were 0.35 to 1 cent lower, with December at 73.30 cents a pound; feeder cattle were 0.15 to 0.53 cent lower, with November at 81.67 cents a pound; live hogs were 0.22 cent lower to 0.27 cent higher, with December at 41.42 cents a pound, and frozen pork bellies were unchanged to 0.23 cent higher, with February at 46.57 cents a pound.

Wheat and corn futures finished modestly higher on the Chicago Board of Trade, but soybeans were little changed after a dull session.

Wheat settled 1.75 to 8 cents higher, with December at $4.185 a bushel; corn was 2.25 to 3 cents higher, with December at $2.845 a bushel; oats were 1.5 to 4.25 cents lower, with December at $2.325 a bushel, and soybeans were 0.75 cent lower to 5 cents higher, with November at $7.7675 a bushel.

Crude oil and gasoline futures ended moderately lower in thin trading on the New York Mercantile Exchange while heating oil futures advanced.

West Texas Intermediate crude oil settled 12 to 18 cents lower, with December at $13.44 a barrel; heating oil was 0.11 to 0.42 cent higher, with December at 43.17 cents a gallon, and unleaded gasoline was 0.45 to 0.71 cent lower, with December at 43.62 cents a gallon.

Stock index futures rose moderately on the Chicago Mercantile Exchange, with the December contract of the Standard & Poor’s 500 up 1.05 points at 280.15.