Bloomberg News

Copper Cuts Weekly Loss; Crude Set to Drop: Commodities on Close

December 16, 2011

Dec. 16 (Bloomberg) -- The Standard & Poor’s GSCI gauge of 24 commodities rose 0.2 percent to 619.73 as of 4:37 p.m. in Singapore. The UBS Bloomberg CMCI index of 26 raw materials rose 0.5 percent to 1,473.326.

CRUDE OIL

Crude for January delivery traded near a six-week low and headed for a second weekly decline in New York while remaining above moving averages that tend to support buying. Futures for January delivery rose 0.1 percent to $93.99 a barrel in electronic trading on the New York Mercantile Exchange at 4:39 p.m. Singapore time. The contract yesterday declined to $93.87, the lowest close since Nov. 2.

Brent oil for February settlement was at $104.13 a barrel, up 53 cents, on the London-based ICE Futures Europe exchange. The European benchmark contract’s premium to West Texas Intermediate for the same month was at $9.91, compared with a record $27.88 on Oct. 14. Crude markets: NI CRMKTS <GO>

NATURAL GAS

Futures rose in New York. Gas for January delivery gained 0.6 percent to $3.147 per million British thermal units on the New York Mercantile Exchange. Prices are 29 percent lower this year. U.S. natural gas: NI NUSMKT <GO>

OIL PRODUCTS

Asia fuel-oil’s discount to crude is poised to narrow this week, signaling reduced refining losses for residual products. Gasoil’s crack spread declined over the same period.

Fuel oil’s discount to Asian marker Dubai crude narrowed 95 cents to $4.73 a barrel at 12:30 p.m. Singapore time, according to PVM Oil Associates Ltd., a broker in London. The difference is poised to shrink for a second week.

The premium of gasoil, or diesel, to Dubai crude rose $1.23 to $18.35 a barrel, reducing losses so far this week to 2.8 percent, according to PVM. This crack spread, a measure of profit for making the distillate fuel, is set to narrow for the fourth week in five.

Japan’s open-specification naphtha forward contracts for second-half January delivery were bid at $879.50 a ton against offers at $882.50, based on data from Ginga Petroleum Singapore Pte, a broker. Yesterday, the petrochemical feedstock closed at $891.50, ending a three-day advance. Asia oil products: NI OPAMKT <GO>

BASE METALS

Copper for three-month delivery gained as much as 2.1 percent to $7,359.75 a metric ton on the London Metal Exchange before trading at $7,349 at 3:58 p.m. Shanghai time, heading for a 6 percent weekly decline.

Copper for March-delivery on the Shanghai Futures Exchange closed 2.4 percent higher at 54,300 yuan ($8,552) a ton. The metal for March-delivery on the Comex in New York gained 1.8 percent to $3.325 per pound.

Aluminum rose 1.5 percent to $2,005.25 a ton in London, zinc gained 2.3 percent to $1,887.75 a ton and lead climbed 1.8 percent to $2,010 a ton. Tin advanced 1.3 percent to $18,850 a ton and nickel rose 0.6 percent to $18,010 a ton. Base metals markets: NI BMMKTS <GO>

GRAINS, OILSEEDS, LIVESTOCK

Soybeans for March delivery climbed 0.5 percent to $11.265 a bushel on the Chicago Board of Trade at 2:13 p.m. Singapore time. Futures have gained 1.8 percent this week and are set for a 20 percent decline this year.

Wheat for March delivery climbed 0.2 percent to $5.8025 a bushel, trimming the weekly loss to 2.6 percent. Futures earlier fell to $5.7725 a bushel equaling the lowest price in more than 16 months reached yesterday. Futures are set for a 27 percent slump this year.

Corn for delivery in March gained 0.2 percent to $5.8025 a bushel, set for a 2.4 percent loss this week. The commodity has declined 8 percent this year, heading for the first annual loss in three years.

Cattle futures for February delivery rose 0.3 percent to settle at $1.1915 a pound at 1 p.m. on the Chicago Mercantile Exchange, the biggest advance for the most-active contract since Nov. 30. The commodity has gained 10 percent in 2011.

Hog futures for February settlement fell 1 percent to settle at 85.425 cents a pound. The price touched 85.35 cents, the lowest since Nov. 8. The price is up 7.1 percent in 2011.

Feeder-cattle futures for January settlement rose 0.2 percent to $1.43975 a pound. Grain markets: NI GRMKTS <GO> Livestock markets: NI LVMKTS <GO>

PRECIOUS METALS

Immediate-delivery gold gained for the first day in five, gaining as much as 1.6 percent to $1,595.86 an ounce and trading at $1,594.61 at 3:22 p.m. in Singapore. This week, the metal has lost 6.9 percent, the biggest drop since Sept. 23. February- delivery gold gained 1.2 percent to $1,596.20 on the Comex.

Spot silver rose as much as 2.3 percent to $29.6825 an ounce, extending yesterday’s 0.9 percent advance. The price dropped to $28.13 yesterday, the lowest level since Sept. 26. This week, silver’s fallen 7.9 percent.

Spot platinum climbed 1.1 percent to $1,423.38 an ounce, rising for the first day in five. It’s down 6.1 percent this week, also the worst five-day showing since September. The price fell to $1,378.50 yesterday, the lowest since Nov. 13, 2009.

Palladium gained 1.5 percent to $628.50 for a decline of 8.3 percent this week, the worst loss since the period to Nov. 18. The price touched $600.50 on Dec. 14, the lowest level since Nov. 30. Precious metal markets: NI PCMKTS <GO>

SOFT COMMODITIES

Cotton futures for March delivery gained 1.4 percent to settle at 86.29 cents a pound yesterday on ICE Futures U.S. in New York. The fiber has plunged 40 percent this year. The commodity touched 84.35 cents yesterday, the lowest since Aug.

Orange-juice futures for January delivery slid 0.8 percent to close yesterday at $1.664 a pound on ICE. The commodity has advanced 1.7 percent this year, heading for a third straight annual gain. Cocoa fell for a second day on speculation that global supplies will be enough to meet demand as European consumption slows. Cocoa for March delivery slid 1.3 percent to settle yesterday at 2,151 a metric ton on ICE Futures U.S. in New York. The price dropped 2.8 percent yesterday and is down 29 percent this year.

Raw-sugar futures for March delivery slid 0.2 percent to 22.75 cents a pound on ICE. The sweetener is down 29 percent this year. Arabica-coffee futures for March delivery slipped 0.1 percent to $2.1775 a pound in New York. Price have slumped 9.5 percent this year. Soft commodities markets: NI SOMKTS <GO>

--Editor: Mike Anderson.

To contact the reporters on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net; Ramsey Al-Rikabi in Singapore at ralrikabi@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net


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