Bloomberg News

Copper Rises on Signs of Economic Recovery: Commodities at Close

March 13, 2012

The Standard & Poor’s GSCI Spot Index of 24 raw materials rose 0.7 percent to 708.93 at 3:48 p.m. in New York, led by industrial metals.

The UBS Bloomberg CMCI index of 26 prices advanced 0.8 percent to 1,640.07

BASE METALS

Copper climbed to a one-week high on speculation that an accelerating economic recovery in the U.S., the world’s second- biggest consumer of the metal, will boost demand.

February retail sales rose 1.1 percent, the largest gain in five months. Copper inventories monitored by the London Metal Exchange have dropped 26 percent this year to the lowest since July 2009.

Copper futures for May delivery advanced 1.7 percent to $3.9025 a pound on the Comex in New York,

On the London Metal Exchange, copper for delivery in three months rose 1.3 percent to $8,558 a metric ton ($3.88 a pound).

Aluminum, zinc, lead, tin and nickel also increased in London.

CRUDE OIL

Crude oil rose after U.S. retail sales increased, signaling economic growth and higher fuel demand.

On the New York Mercantile Exchange, oil futures for April delivery climbed 0.3 percent to $106.71 a barrel.

Brent crude for April settlement on the London-based ICE Futures Europe exchange gained 0.7 percent to $126.22 a barrel, the highest settlement in 11 months.

BP Plc failed to sell Russian Urals blend in northwest Europe at a lower price. No bids or offers were made for North Sea Forties crude for the second day.

OAO Rosneft issued a tender to sell Urals crude for loading from April to September from two ports, according to three traders who participate in the market.

NATURAL GAS

Natural gas rose as demand rebounded after prices slumped to the lowest in 10 years.

On the Nymex, gas futures for April delivery climbed 1.3 percent to $2.299 per million British thermal units. Earlier, the price touched $2.204, the lowest since February 2002.

U.K. gas for next-day delivery rose, snapping a two-session decline, as temperatures climbed less than forecast, boosting demand for heating.

Gas rose as much as 0.6 pence to 59.2 pence a therm at 4:50 p.m. London time, according to broker data compiled by Bloomberg. That’s equal to $9.32 per million Btu. A therm is 100,000 Btu.

OIL PRODUCTS

Gasoline surged to a 10-month high as U.S. retail sales rose, increasing optimism on the economy and bolstering prospects for fuel demand.

On the Nymex, gasoline futures for April delivery rose 1 percent to $3.3546 a gallon, the highest settlement since May 10.

Heating-oil futures for April delivery advanced 0.9 percent to $3.2712 a gallon.

GRAINS, OILSEEDS

Soybeans rose the most in two weeks on speculation that China, the world’s largest user, will boost purchases from the U.S. after drought cut yields in Brazil and Argentina.

On the Chicago Board of Trade, soybean futures for May delivery advanced 1.1 percent to $13.4875 a bushel, the biggest gain since Feb. 27.

Corn futures for May delivery rose 0.4 percent to $6.62 a bushel, capping a three-day gain of 4.2 percent.

Wheat futures for May delivery slid 0.3 percent to $6.49 a bushel.

SOFT COMMODITIES

Cotton futures rose, snapping a five-session slump, on signs that demand is picking up in China, the world’s biggest user.

On ICE Futures U.S. in New York, cotton for May delivery advanced less than 0.1 percent to 88.04 cents.

Arabica-coffee futures for May delivery advanced 0.7 percent to $1.8615 a pound, the biggest gain since Feb. 28.

Raw-sugar futures for May delivery climbed 1.5 percent to 24.13 cents a pound, the largest increase since Feb. 21.

Cocoa futures for May delivery slid 0.5 percent to $2,372 a metric ton.

Orange-juice futures for May delivery rose 0.1 percent to $1.858 a pound.

LIVESTOCK

Cattle prices climbed for the second straight day on signs of increasing domestic demand for U.S. beef.

On the Chicago Mercantile Exchange, cattle futures for June delivery advanced 0.9 percent to $1.248 a pound, the biggest gain since March 8.

Feeder-cattle futures for May settlement climbed 0.9 percent to $1.59025 a pound.

Hog futures for June settlement rose 0.2 percent to 95.025 cents a pound, the first gain since March 2.

PRECIOUS METALS

Gold fell to the lowest price since January after Federal Reserve policy makers raised their assessment of the economy, signaling that monetary stimulus won’t be expanded.

Gold for immediate delivery dropped 1.6 percent to $1,674.20 an ounce at 4:43 p.m. New York time. Earlier, the price touched $1,663.13, the lowest since Jan. 25.

On the Comex, gold futures for April delivery dropped 0.3 percent to $1,694.20. In electronic trading after the close, the most-active contract fell as much as 2.2 percent to $1,662.10.

Silver futures for May delivery rose 0.5 percent to settle at $33.581 an ounce.

On the New York Mercantile Exchange, platinum futures for April delivery gained 0.4 percent to $1,701.80 an ounce. Palladium futures for June delivery climbed 0.7 percent to $708.85 an ounce.

-- With assistance from Matthew Brown, Sherry Su and Agnieszka Troszkiewicz in London; Whitney McFerron and Elizabeth Campbell in Chicago; and Moming Zhou, Christine Buurma, Yi Tian and Joe Richter in New York. 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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