Bloomberg News

Hogs, Cattle Futures Rise; Crude Oil Gains: Commodities at Close

February 15, 2012

Feb. 15 (Bloomberg) -- The Standard & Poor’s GSCI gauge of 24 commodities climbed 0.7 percent to 683.03 at 5:18 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials rose 0.6 percent to 1,614.389.

CRUDE OIL

Oil rose after China pledged to help resolve Europe’s debt crisis, easing concern that economic growth will slow and curb fuel demand. Brent crude may advance to $120 a barrel, according to Goldman Sachs Group Inc.

Oil for March delivery rose as much as $1.02 to $101.76 a barrel in electronic trading on the New York Mercantile Exchange and was at $101.53 at 4:13 p.m. Singapore time. It fell 17 cents to $100.74 yesterday, the lowest close since Feb. 10. Prices are 20 percent higher the past year.

Brent oil for April settlement gained 61 cents to $117.96 a barrel on the ICE Futures Europe exchange. The European benchmark contract’s premium to New York-traded West Texas Intermediate for the same month was at $16.14, compared with $17.42 yesterday. Crude markets: NI CRMKTS <GO>

NATURAL GAS

Natural gas rose as much as 1 percent, climbing for a second day.

Natural gas for March delivery rose 2.2 cents to $2.554 per million British thermal units on the New York Mercantile Exchange. Gas has declined 15 percent this year and dropped to $2.231 on Jan. 23, the lowest intraday price since February 2002. U.S. natural gas market: NI NUSMKT <GO>

OIL PRODUCTS

Singapore fuel oil’s discount to Dubai crude, a measure of refining losses from the fuel in Asia, widened 61 cents, or 15 percent, to $4.73 a barrel at 2:13 a.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. The discount is at the widest since Dec. 15. High-sulfur fuel oil swaps for March fell $1, or 0.1 percent, to $719.25 a ton.

Singapore gasoil’s premium to Dubai crude oil rose 56 cents, or 3.4 percent, to $16.93 a barrel, PVM data showed. Yesterday, this crack spread dropped to $16.37, the lowest since Oct. 19, on concern that slower growth in Europe will reduce fuel demand.

Japan naphtha swaps for March climbed $2.75, or 0.3 percent, to $1,022.50 a ton, PVM data showed. The benchmark naphtha’s premium to London-traded Brent crude futures rose to $132.73 a ton at 2:40 p.m. Singapore time from $129.53 yesterday, according to data compiled by Bloomberg. Oil products market: NI OPAMKT <GO>

PRECIOUS METALS

Gold climbed as a pledge by China to help resolve Europe’s sovereign-debt crisis weakened the dollar against the euro, and holdings in exchange-traded funds approached a record. Silver, platinum and palladium advanced.

Spot gold rose as much as 0.6 percent to $1,729.66 an ounce, and traded at $1,729 at 3:31 p.m. in Singapore. Holdings in exchange-traded products advanced to 2,390.729 metric tons yesterday, within 0.1 percent of the Dec. 13 all-time high, according to data tracked by Bloomberg.

Silver for immediate delivery gained 0.5 percent to $33.7325 an ounce, after falling 0.5 percent yesterday. Cash platinum rose 0.5 percent to $1,640 an ounce after yesterday’s 1.2 percent decline, the most in two weeks. Spot palladium advanced 0.7 percent to $691.54 an ounce, after dropping 1.7 percent yesterday, the most since Jan. 6. Precious metal markets: NI PCMKTS <GO>

BASE METALS

Copper advanced for the first time in four days after China said it will help Europe resolve its debt crisis, boosting the region’s growth outlook. Aluminum, tin and zinc gained.

Metal for delivery in three months rose as much as 1.2 percent to $8,517.50 a metric ton, and traded at $8,475 by 3:09 p.m. Shanghai time. The May-delivery contract on the Comex increased 1 percent to $3.86 a pound.

On the LME, aluminum gained 0.9 percent to $2,235 a ton, zinc increased 1.4 percent to $2,060 a ton and lead climbed 1.2 percent to $2,099 a ton. Nickel advanced 0.9 percent to $20,340 per ton and tin rose 1.9 percent to $24,801 per ton. Base metals markets: NI BMMKTS <GO>

GRAINS, SOFT COMMODITIES

Soybeans fell for the first time in four days on speculation the rally to a four-month high may reduce its appeal for importers and as U.S. crushing declines.

May-delivery soybeans lost as much as 0.5 percent to $12.565 a bushel on the Chicago Board of Trade, before trading at $12.60 at 3:38 p.m. in Singapore. The price climbed as high as $12.69 yesterday, the most expensive for the most-active contract since Oct. 17.

Corn for May delivery was unchanged at $6.38 a bushel on the Chicago Board of Trade. Wheat for the same month increased 0.3 percent to $6.4075 a bushel.

Palm oil declined from the highest level in more than a month as exports slowed from Malaysia, the second-largest producer after Indonesia. The April-delivery contract fell as much as 0.7 percent to 3,182 ringgit ($1,047) a metric ton on the Malaysia Derivatives Exchange, and traded at 3,191 ringgit at 3:49 p.m. in Kuala Lumpur. Futures rose 1.2 percent yesterday, climbing for a second day, to the highest close since Jan. 11.

Orange juice futures for March delivery fell 0.1 percent to settle at $1.8395 a pound yesterday on ICE Futures U.S. in New York. The price dropped for the sixth straight session, the longest slump since mid-November. The commodity has declined 19 percent from a record $2.2695 on Jan. 23.

Cotton futures for May delivery rose 0.3 percent to 92.84 cents a pound in New York, the third straight gain.

Arabica coffee for May delivery fell 3.9 percent to close at $2.0615 a pound at yesterday on ICE Futures U.S. in New York, the biggest loss for a most-active contract since Oct. 25. Earlier, the price slipped to $2.053, the lowest for a most- active contract since Dec. 10, 2010.

Raw-sugar futures for May delivery declined 1.9 percent to 22.83 cents a pound on ICE, the first decline for the contract in a week and the biggest since Jan. 27. The commodity has slumped 21 percent in the past year.

Cocoa futures for May delivery rose 3.6 percent to $2,270 a metric ton in New York, the biggest gain for a most-active contract since Jan. 24.

Cattle futures for April delivery advanced 0.9 percent to close at $1.2925 a pound yesterday on the Chicago Mercantile Exchange, after reaching $1.2945, the highest for a most-active contract since Jan. 25, when the commodity jumped to a record $1.29675. Prices have gained 6.4 percent this year and almost 14 percent from a year ago. Feeder-cattle futures for March settlement increased 1 percent to $1.5625 a pound in Chicago, after reaching a record $1.568.

Hog futures for April settlement gained 1.9 percent to settle at 89.625 cents a pound in Chicago. Prices are up 6.3 percent this year. Soft commodity markets: NI SOMKTS <GO> Grain markets: NI GRMKTS <GO>

--Editor: Christian Schmollinger

To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net

To contact the editor responsible for this story: Christian Schmollinger at christian.s@bloomberg.net


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