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Nickel Will Decline till 2010; Wheat, Copper Advance

November 13, 2009 at 20:48 by Vladimir Vyun

Nickel will slid 8 percent by the end of this year as demand declines. Prices may fall to $16,000 per metric ton in the first half of 2010 before rising in the second half as demand from the steel industry increases, yet supply will remain greater then demand in the next year. Three-month delivery for nickel slid 5.9 percent to $16,325 per ton at 7:31 on LME.

Wheat went up on outlooks that larger share of the U.S. grain harvest will be used as livestock feed after the corn price rose. Approximately 190 million tons of the grain will be used as feed for animals in the year ending on May 31st. This figure may increase as corn futures rise, thus increasing appeal of wheat as a feed source. March futures for wheat delivery went up $0.0575 (1 percent) to $5.58 per bushel by 10:27 on the Chicago Board of Trade.

Copper advanced as the dollar fell, boosting appeal of the metal as an inflation hedge. Inventories monitored by LME increased for the ninth straight session, suggesting that demand may fall. March futures for copper delivery advanced $.017 (0.6 percent) to $2.99 per pound as of 12:05 NYMEX.

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