Bloomberg News

Hogs Rise as China’s Pork Demand May Gain: Commodities at Close

February 01, 2012

Feb. 1 (Bloomberg) -- The Standard & Poor’s GSCI Spot Index of 24 raw materials rose less than 0.1 percent to close at 660.76 at 3:51 p.m. in New York, led by hogs and silver.

The UBS Bloomberg CMCI index of 26 prices climbed 0.4 percent to 1,592.56.

LIVESTOCK

Hogs rose to a two-month high on speculation that accelerating growth in China, the world’s biggest pork consumer, will boost demand for U.S. supplies.

The purchasing managers’ index in China topped analysts’ estimates last month, rising to 50.5 from 50.3 in December, the country’s statistics bureau said. Readings above 50 signal expansion. Prices also climbed after a private report showed U.S. manufacturing rose in January at the fastest pace in seven months.

Hog futures for April settlement climbed 1.7 percent to 90.35 cents a pound on the Chicago Mercantile Exchange. After the close of regular trading, the price climbed to 90.475 cents, the highest for a most-active contract since Dec. 2.

Cattle futures for April delivery gained 0.5 percent to $1.29225 a pound. The price has gained 13 percent in the past 12 months.

Feeder-cattle futures for March settlement increased 0.2 percent to $1.5585 a pound. Earlier, the price reached a record $1.562.

Livestock markets: NI LVMKTS <GO>

GRAINS, OILSEEDS

Wheat rose to a four-month high as subzero temperatures spread across Russia and parts of Europe, raising concern that winter crops may suffer damage where snow is insufficient to insulate fields.

On the Chicago Board of Trade, wheat futures for March delivery climbed 1.2 percent to $6.7425 a bushel. Earlier, the price reached $6.8375, the highest since Sept. 20.

Soybean futures for March delivery rose 1.4 percent to $12.1525 a bushel, capping a two-day gain of 2.5 percent.

Corn futures for March delivery gained 0.5 percent to $6.42 a bushel. Earlier, the grain reached $6.50, the highest since Jan. 12. Yesterday, the price advanced 1.1 percent.

Grains markets: NI GRMKTS <GO>

PRECIOUS METALS

Gold climbed to the highest price in almost eight weeks as Europe’s lingering debt crisis and a weaker dollar spurred demand for the precious metal as an alternative asset.

On the Comex in New York, gold futures for April delivery gained 0.5 percent to $1,749.50 an ounce, the highest settlement since Dec. 2.

Silver futures for March delivery rose 1.6 percent to $33.807 an ounce. Yesterday, the price reached $34.13, the highest since Nov. 16.

On the New York Mercantile Exchange, platinum futures for April delivery advanced 2.2 percent to $1,623.20 an ounce. Palladium futures for March delivery rose 1.5 percent to $696.70 an ounce.

Precious-metal markets: NI PCMKTS <GO>

BASE METALS

Copper rose, snapping a three-session slump, as manufacturing gains in Asia and the U.S. bolstered prospects for metal demand.

On the Comex, copper futures for March delivery climbed 1.4 percent to settle at $3.842 a pound. The metal dropped 2.9 percent in the previous three sessions.

On the London Metal Exchange, copper for delivery in three months gained 1.4 percent to $8,440 a metric ton ($3.83 a pound).

Aluminum, lead, nickel and zinc also rose in London. Tin fell.

Base-metal markets: NI BMMKTS <GO>

CRUDE OIL

Crude oil declined to a six-week low after an Energy Department report showed that U.S. inventories climbed more than expected and gasoline demand tumbled to a 10-year low.

Oil futures for March delivery fell 0.9 percent to $97.61 a barrel on the Nymex, the lowest settlement since Dec. 20.

Brent oil for March settlement climbed 0.5 percent to $111.56 a barrel on the London-based ICE Futures Europe exchange.

Statoil ASA failed to buy North Sea Forties crude even after it bid at the highest in almost a month. No bids or offers were made for Russian Urals after the grade’s differential to dated Brent rose to a six-week high yesterday in northwest Europe.

Statoil was unable to buy a shipment for Feb. 16 to Feb. 18 loading at 15 cents more than dated Brent, the highest since Jan. 6, according to a Bloomberg survey of traders monitoring the Platts trading window.

Crude oil futures: NI CRMKTS <GO>

Europe physical crude: NI CNSMKT <GO>

U.S. physical crude: NI CRGMKT <GO>

Asia physical crude: NI CRAMKT <GO>

NATURAL GAS

Natural gas fell for the third straight day after Exxon Mobil Corp., the largest U.S. producer, said it hasn’t curbed production after rising output and mild weather drove prices to a 10-year low.

On the Nymex, gas futures for March delivery fell 4.8 percent to $2.382 per million British thermal units.

U.K. gas for immediate delivery fell, reversing earlier gains, as deliveries rose to meet increased demand.

Gas slipped as much as 1 pence to 59 pence a therm, according to broker data compiled by Bloomberg. It was at 59.7 pence a therm, or $9.46 per million Btu, at 4:30 p.m. in London. A therm is 100,000 Btu.

U.S. natural gas: NI NUSMKT <GO>

U.K. natural gas: NI NUKMKT <GO>

OIL PRODUCTS

Gasoline futures pared gains after the Energy Department reported demand sank to the lowest since September 2001 and supplies rose more than projected last week.

On the Nymex, gasoline futures for March delivery rose 0.2 percent to 2.8922 a gallon.

Heating-oil futures for March delivery fell 0.6 percent to $3.0455 a gallon.

U.S. oil product futures: NI OPFMKT <GO>

U.S. oil products: NI OPUMKT <GO>

Asia oil products: NI OPAMKT <GO>

Europe oil products: NI OPEMKT <GO>

SOFT COMMODITIES

Cotton futures rose for the first time in three days on signs that the economy in China, the world’s biggest user, is weathering an export slowdown driven by Europe’s debt crisis.

Cotton for March delivery advanced 0.2 percent to 93.39 cents a pound on ICE Futures U.S. in New York. The price has fallen 46 percent in the past year.

Orange-juice futures for March delivery fell 2.3 percent to $2.052 a pound, the lowest settlement since Jan. 19. The commodity surged 24 percent last month.

Cocoa futures for March delivery fell 2.9 percent to $2,225 a metric ton. In January, the price jumped 8.6 percent.

Raw-sugar futures for March delivery fell 0.2 percent to 23.59 cents a pound. The price declined for the fourth straight session, the longest slump since early August.

Arabica-coffee futures for March delivery fell 0.4 percent to $2.141 a pound, the fourth consecutive drop.

Soft commodities markets NI SOMKTS <GO>

--Editors: Thomas Galatola, Patrick McKiernan

To contact the reporter on this story: Thomas Galatola in New York at tgalatola@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net


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