Copper at 20-Week High on China Housing: Commodities at Close
February 08, 2012, 6:24 PM ESTBy Gene Laverty
Feb. 8 (Bloomberg) -- The Standard & Poor’s GSCI Spot Index of 24 raw materials rose 0.3 percent to 674.96 at 3:43 p.m. in New York as copper, oil and sugar climbed.
The UBS Bloomberg CMCI index of 26 prices increased 0.1 percent to 1,615.6.
BASE METALS
Copper futures rose to a 20-week high after the government pledged to support first-time homebuyers in China, the world’s biggest consumer of the metal used in pipes and wires.
Officials will boost support for affordable-housing construction, the People’s Bank of China said yesterday. The Copper Development Association estimates that builders account for more than 40 percent of the metal’s use.
On the Comex in New York, copper futures for March delivery advanced 0.9 percent to close at $3.9095 a pound at 1:19 p.m., the highest settlement for a most-active contract since Sept. 16. The price has gained 14 percent this year.
On the London Metal Exchange, copper for delivery in three months rose 1.2 percent to $8,580 a metric ton ($3.89 a pound).
Tin, aluminum, nickel, lead and zinc fell on the LME.
Base metals markets: NI BMMKTS <GO>
CRUDE OIL
Oil in New York climbed to the highest level this month after the U.S. Energy Department reported that supplies increased less than analysts forecast and refineries bolstered fuel production.
Futures rose 0.3 percent after the report showed crude stockpiles gained 304,000 barrels, less than the 2.5 million barrels estimated in a Bloomberg News survey. Refiners ramped up gasoline output on the East Coast, and Brent crude traded in London jumped more than West Texas Intermediate oil in New York.
Crude oil for March delivery rose 30 cents to settle at $98.71 a barrel on the New York Mercantile Exchange. Prices are up 14 percent from a year ago.
Brent oil for March settlement increased 97 cents, or 0.8 percent, to settle at $117.20 a barrel on the London-based ICE Futures Europe exchange.
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 futures fell for a second day in New York on speculation that a government report tomorrow will show a widening surplus of the furnace fuel as mild weather last week crimped demand.
Gas dropped 1 percent after swinging between gains and losses for most of the day. The Energy Department report tomorrow may show a below-average decline in U.S. inventories, analyst estimates show. Supplies reported last week were 25.4 percent above the five-year average, the biggest weekly surplus since April 2007, according to department data.
Natural gas for March delivery fell 2.4 cents to $2.448 per million British thermal units on the New York Mercantile Exchange after rising to $2.508. Gas has dropped 18 percent this year.
U.S. natural gas: NI NUSMKT <GO>
OIL PRODUCTS
Gasoline surged to the highest level since August on speculation that refinery shutdowns in Europe and the U.S. will trigger a supply crunch during the spring and summer driving season.
Futures rose 1.6 percent as Petroplus Holdings AG said it’s halting production at its German refinery within two weeks. The refiner shut three other plants and is operating a fifth in the U.K. at reduced rates. Plants in the Virgin Islands and Pennsylvania that supply the U.S. East Coast have also closed.
Gasoline for March delivery rose 4.77 cents to $2.9752 a gallon on the New York Mercantile Exchange, the highest settlement since Aug. 31 and largest gain since Jan. 27.
March-delivery heating oil fell 0.14 cent to settle at $3.1895 a gallon a gallon on the exchange. Heating oil’s premium to gasoline narrowed to 21.43 cents from 26.34 cents.
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
Sugar futures rose to the highest price in more than a week on speculation that supply disruptions in exporting countries and accelerating global consumption will trim a surplus. Coffee and cocoa declined.
Demand for sugar will rise 2.7 percent to 170.6 million metric tons in the 12 months starting Oct. 1, faster than the 2.2 percent annual gains of the past decade, Kingsman SA, an industry researcher and broker, said yesterday. Frost has delayed the cane harvest in Brazil, drought reduced the crop in Mexico, and Thailand reported today that sugar production fell
Raw sugar for March delivery advanced 0.3 percent to settle at 24.48 cents a pound at 2 p.m. on ICE Futures U.S. in New York, after reaching 24.77 cents, the highest for a most-active contract since Jan. 27.
Arabica-coffee futures for March delivery fell 0.4 percent to close at $2.2005 a pound in New York, snapping a four-session rally.
Cocoa futures for May delivery slid 0.6 percent to $2,278 a ton, paring this year’s advance to 8 percent.
Soft commodities markets: NI SOMKTS <GO>
GRAINS, OILSEEDS
Corn futures rose for the first time this week on speculation that dry weather in Argentina and Brazil damaged crops. Soybeans fell as rain this week may boost yields in South America.
Global inventories of both crops will fall before the harvests in the Northern Hemisphere, and the U.S. Department of Agriculture probably will trim its output forecast for South America in a report tomorrow, a Bloomberg News survey showed. Argentina is the world’s second-biggest corn exporter, and Brazil is forecast to be the top soybean shipper this year, according to the USDA.
Corn futures for March delivery rose 0.25 cent to close at $6.425 a bushel on the Chicago Board of Trade. Soybean futures for March delivery fell 0.5 cent to $12.315 a bushel. Earlier, the price reached $12.4475, the highest for a most-active contract since Jan. 3.
Wheat fell to a one-week low on speculation that a U.S. government report tomorrow may show global stockpiles are at the highest in 12 years.
World inventories before the 2012 Northern Hemisphere harvest will total 208.69 million metric tons, 0.6 percent less than forecast last month while still the highest since 2000, according to a Bloomberg survey. The Department of Agriculture will release its forecasts at 8:30 a.m. tomorrow in Washington. start seeing it drift lower. There is no shortage of wheat.’’
Wheat futures for March delivery dropped 0.2 percent to settle at $6.6075 a bushel at 1:15 p.m. Earlier, the price touched $6.53, the lowest since Jan. 31. The most-active contract is up 1.2 percent this year.
Grain markets: NI GRMKTS <GO>
LIVESTOCK
Hog prices declined for the second time this week on signs of increasing U.S. supplies of pork. Cattle futures were little changed.
Slaughtered hogs in Iowa and southern Minnesota, the biggest U.S. pork-producing area, averaged 275.4 pounds (124.9 kilograms) in the week ending Feb. 4, up 1.6 pounds from a year earlier, U.S. Department of Agriculture data show.
Hog futures for April settlement fell 0.2 percent to 88.95 cents a pound on the Chicago Mercantile Exchange.
Cattle futures for April delivery rose 0.2 percent to $1.288 a pound in Chicago.
Feeder-cattle futures for March settlement rose 0.2 percent to $1.55275 a pound.
Livestock markets: NI LVMKTS <GO>
PRECIOUS METALS
Gold futures fell for the third time in four sessions as the dollar’s rebound eroded demand for the metal as an alternative investment. Silver dropped from a 12-week high.
The dollar was little changed against a basket of major currencies, recovering from an eight-week low, amid speculation that Greek Prime Minister Lucas Papademos and coalition party members would fail to agree on terms for a bailout.
Gold futures for April delivery fell 1 percent to settle at $1,729.30 an ounce on the Comex in New York.
Silver futures for March delivery fell 1.4 percent to $33.704 an ounce on the Comex. Earlier, the price reached $34.52, the highest for a most-active contract since Nov. 16.
On the New York Mercantile Exchange, platinum futures for April delivery jumped 0.8 percent to $1,668.10 an ounce. Palladium futures for March delivery rose 1 percent to $715.90 an ounce.
Precious metal markets: NI PCMKTS <GO>
--With assistance from Naureen S. Malik, Debarati Roy, Mark Shenk, Yi Tian, Joe Richter and Marvin G. Perez in New York, Barbara J Powell in Dallas, Nicholas Larkin, Maria Kolesnikova and Tony C. Dreibus in London, Lynn Doan in San Francisco and Jeff Wilson and Elizabeth Campbell in Chicago. Editors: Richard Stubbe, Bill Banker
To contact the reporter on this story: Gene Laverty in Calgary at glaverty@bloomberg.net
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net
