Bloomberg News

Cocoa Surges After Olam Forecasts Rally: Commodities at Close

February 15, 2012

Feb. 15 (Bloomberg) -- The Standard & Poor’s GSCI Spot Index of 24 raw materials rose 0.6 percent to settle at 682.84 at 3:43 p.m. in New York, led by cocoa.

The UBS Bloomberg CMCI index of 26 prices advanced 0.1 percent to 1,607.26.

SOFT COMMODITIES

Cocoa surged the most in three weeks after Olam International Ltd., a Singapore-based commodity trader, said the price has “more upside” with global demand forecast to outpace supplies.

Processing has been “stronger than expected,” and the market will swing to a deficit in the 12 months that started Oct. 1 from a surplus a year earlier, Sunny Verghese, Olam’s chief executive officer, said yesterday. Prices also rose on concern that adverse weather may hurt crops in Ivory Coast and Ghana, the world’s biggest producers.

On ICE Futures in New York, cocoa for May delivery jumped 5.3 percent to $2,391 a metric ton, the biggest gain for a most- active contract since Jan. 24.

Arabica-coffee futures for May delivery fell 1.7 percent to $2.0255 a pound. The price dropped for the sixth straight session, the longest slump since late November.

Raw-sugar futures for May delivery rose 0.8 percent to 23.57 cents a pound.

Orange-juice futures for March delivery rose 1.2 percent to $1.861 a pound.

Cotton futures for May delivery rose 0.7 percent to 93.48 cents a pound, the fourth straight gain.

Soft commodities markets: NI SOMKTS <GO>

CRUDE OIL

Crude oil rose to a one-month high after reports that Iran halted shipments to Europe and U.S. inventories declined for the first time in four weeks.

On the New York Mercantile Exchange, oil futures for March delivery rose 1.1 percent to $101.80 a barrel, the highest settlement since Jan. 10.

Statoil ASA bought North Sea Forties crude at the highest price in more than four months. Vitol Group sought to sell Russian Urals blend in the Mediterranean without finding a buyer.

Statoil bought a Forties cargo for loading on March 5 to March 7 from Vitol at $1.05 a barrel more than dated Brent, the highest since Sept. 27, according to a Bloomberg survey of traders monitoring the Platts trading window. The company, Norway’s largest producer, bought a shipment at a premium of 80 cents on Feb. 13.

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>

OIL PRODUCTS

Heating oil advanced as U.S. factory production increased in January, indicating stronger economic growth and greater fuel demand.

On the Nymex, heating-oil futures for March delivery advanced 0.8 percent to $3.1916 a gallon.

Gasoline futures for March delivery increased 0.8 percent to $3.0067 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>

PRECIOUS METALS

Gold rose, ending the longest slump this year, as China’s pledge to help resolve Europe’s debt crisis boosted demand for commodities.

On the Comex in New York, gold futures for April delivery rose 0.6 percent to $1,728.10 an ounce, the biggest gain for a most-active contract since Feb. 7. The metal dropped 1.3 percent in the previous three sessions, the longest slump since late December.

Silver futures for March delivery advanced 0.2 percent to $33.408 an ounce. The price has gained 20 percent this year.

On the Nymex, palladium futures for March delivery fell 0.5 percent to $683.65 an ounce. The price fell for the fifth straight session, the longest slump since early October.

Platinum futures for April delivery rose 0.6 percent to $1,638.20 an ounce, ending a four-session slide.

Precious metal markets: NI PCMKTS <GO>

GRAINS, OILSEEDS

Wheat futures fell for the second straight day on signs of increasing supplies from India and Australia.

On the Chicago Board of Trade, wheat futures for May delivery dropped 0.8 percent to $6.34 a bushel.

Soybean futures for May delivery rose 0.5 percent to $12.6875 a bushel.

Corn futures for May delivery fell 1.1 percent to $6.31 a bushel, the biggest drop since Jan. 30.

Grain markets: NI GRMKTS <GO>

BASE METALS

Copper fell, capping the longest slump in two months, on signs that European plans to stem the Greek debt crisis may have hit a snag, dimming prospects for growth and metal demand in the region.

On the Comex, copper futures for May delivery fell 0.3 percent to $3.81 a pound. The metal fell for the fourth straight session, the longest slide since mid-December.

On the London Metal Exchange, copper for delivery in three months declined 0.5 percent to $8,370 a metric ton ($3.80 a pound).

Nickel, zinc, lead and aluminum also fell in London. Tin rose for the first time in six sessions.

Base metals markets: NI BMMKTS <GO>

NATURAL GAS

Natural gas declined the most in two weeks as forecasts for warmer-than-normal weather in the eastern U.S. through the end of February signaled reduced demand.

On the Nymex, gas futures for March delivery fell 4.2 percent to 2.425 per million British thermal units.

U.K. gas for delivery tomorrow gained 0.5 pence to 58 pence a therm at 5 p.m. London time, according to broker prices compiled by Bloomberg. That’s equivalent to $9.11 per million Btu. A therm is 100,000 Btu.

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

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

LIVESTOCK

Cattle futures fell from a record on concern that consumer demand for beef will slow because of the rally in prices. Hogs also dropped.

On the Chicago Mercantile Exchange, cattle futures for April delivery fell 0.3 percent to close at $1.289 a pound, after reaching $1.29875, the highest for a most-active contract since the commodity started trading in 1964.

Hog futures for April settlement fell 0.8 percent to close at 88.9 cents a pound.

Livestock markets: NI LVMKTS <GO>

--With assistance from Matthew Brown, Rachel Morison and Sherry Su in London; Barbara Powell in Dallas; Whitney McFerron and Elizabeth Campbell in Chicago; and Debarati Roy, Mark Shenk, Christine Buurma, Marvin G. Perez and Joe Richter in New York. Editor: 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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