Commodity Capsule: Brent crude oil rise; gold hit a 3-month peak; copper slips

Commodity Capsule: Oil prices extended gains on Friday and were on track for a second week of increases.

Heightened fears that the Israel-Gaza conflict may spread in the Middle East and disrupt supplies pushed crude oil to three-week high levels.

Both contracts are on track to post a second weekly gain, with nearly 7 per cent gains since last Friday.

The U.S. Department of Energy is seeking to buy 6 million barrels of crude for delivery to the Strategic Petroleum Reserve in December and January.

Gold prices hit a three-month peak on Friday and were set for a second straight weekly gain.

Safe-haven demand in the yellow metal is bolstered by the Middle East conflict and expectations that the Federal Reserve may be done with rate hikes.

Gold has risen 2.2 per cent so far this week and 5 per cent since last Friday.

Swiss gold exports fell to their lowest in 15 months in September due to lower deliveries to India and Turkey, customs data showed on Thursday.

Copper prices edged lower on Friday as the U.S. dollar firmed, though hopes of more stimulus in China limited the fall.

The dollar was within a hair's breadth of the closely watched 150 yen level.

Commodities are also facing headwinds from a surge in U.S. 10-year Treasury yield which reached 5 per cent for the first time since 2007.

People's Bank of China pumped a record injection of short-term funding of CNY 733 billion into the financial system on Friday.

The Central Bank is trying to offer a boost for the economy amid a lack of demand and a prolonged downturn in the property market.

Chicago soybeans gained more ground on Friday, with the market on track for a second weekly gain.

Drought in Brazil supported prices, despite ample supplies from newly harvested U.S. crops entering the market.

China's soybean imports from Brazil rose in September by 23% y/y--General Administration of Customs.

China imported 6.88 million metric tons of oilseed from Brazil last month, the highest for September in three years.

CBoT Wheat was poised for 3rd weekly gain. Corn futures were set to post a weekly rise of over 2 per cent.

Arabica Coffee has surged past $1.68/lb, the highest level since 20th September.

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