Bloomberg News

Oil Rebounds; Hogs Decline; Soybeans Gain: Commodities at Close

March 13, 2012

The Standard & Poor’s GSCI gauge of 24 commodities rose 0.5 percent to 707.61 at 5.56 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials climbed 0.5 percent to 1,634.819.

CRUDE OIL

Oil rebounded from the lowest price in almost a week as investors bet that fuel demand may increase amid signs the U.S. and Chinese economies are strengthening.

Oil for April delivery rose as much as 79 cents to $107.13 a barrel in electronic trading on the New York Mercantile Exchange. It was at $107.05 at 3:47 p.m. Singapore time. The contract yesterday fell $1.06 to $106.34, the lowest settlement since March 7. Prices are 8.3 percent higher this year.

NATURAL GAS

Natural gas futures declined in New York, settling at a 10- year low for the third time in four days, on concern that spring-like weather will do little to ease a glut of the furnace and power-plant fuel.

OIL PRODUCTS

The premium of gasoil, or diesel, to Asian marker Dubai crude fell 47 cents to $15.25 a barrel at 12:30 p.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. This crack spread, a measure of processing profit, narrowed the most in six days. Gasoil swaps for April rose 30 cents, or 0.2 percent, to $137.45 a barrel, PVM said.

April naphtha swaps advanced $5.25, or 0.5 percent, to $1,068 a metric ton, according to PVM. The petrochemical feedstock is at the highest since May 3. Naphtha’s premium to London-traded Brent crude futures added 13 cents to $118.57 a ton, according to data compiled by Bloomberg. This crack spread is the widest in a week.

PRECIOUS METALS

Gold may climb, gaining alongside equities and commodities, before a Federal Open Market Committee meeting and as Greece prepares to receive a second bailout. Platinum neared parity with gold.

Spot gold traded at $1,703.13 an ounce at 3:33 p.m. Singapore time, after earlier gaining 0.3 percent to $1,706.05. Assets in exchange-traded products rose to a record 2,408.981 metric tons yesterday, according to data compiled by Bloomberg.

Cash platinum was little changed at $1,694 an ounce, swinging between gains and losses, after climbing in the past four days. The price has gained 21 percent this year and has tied with silver as the best-performing precious metal.

BASE METALS

Copper rose as stockpiles monitored by the London Metal Exchange fell to the lowest in more than two years and as other commodities including oil gained before data forecast to show improving U.S. retail sales.

Metal for delivery in three months on the LME rose as much as 0.9 percent to $8,520 a metric ton and traded at $8,516 by 3:30 p.m. Seoul time. Inventories monitored by the world’s biggest metals bourse have tumbled 26 percent this year to 273,925 tons, the lowest level since July 2009. Orders to withdraw copper from LME warehouses, or canceled warrants, reached the highest level since 2004 at 99,150 tons on March 2, exchange figures showed.

GRAINS, SOFT COMMODITIES

Soybeans gained for the first time in three days on speculation China, the world’s largest user, may boost purchases from the U.S. after drought cut production in Brazil and Argentina. Wheat increased.

The May-delivery contract climbed as much as 0.8 percent to $13.4475 a bushel on the Chicago Board of Trade and traded at $13.445 at 3:44 p.m. Singapore time. Corn for May delivery rose 0.2 percent to $6.6075 a bushel, while wheat for delivery in the same month gained 0.4 percent to $6.5375 a bushel.

Palm oil advanced on concern that production in Malaysia, the second-largest grower, may decline for a fifth month in March, paring stockpiles.

The May-delivery contract climbed as much as 1.2 percent to 3,358 ringgit ($1,109) a metric ton on the Malaysia Derivatives Exchange and was at 3,349 ringgit at 4:34 p.m. in Kuala Lumpur.

Cotton for May delivery fell 0.9 percent to settle at 88 cents a pound at 2:40 p.m. on ICE Futures U.S. in New York, the fifth straight decline. Earlier the price touched 87.01 cents.

Orange-juice futures for May delivery tumbled 1.6 percent to $1.857 a pound on ICE. The price has dropped 18 percent from a record $2.2695 on Jan. 23.

Arabica coffee for May delivery dropped 0.7 percent to close at $1.8485 a pound yesterday on ICE Futures U.S. in New York. Raw-sugar futures for May delivery rose 0.5 percent to 23.77 cents a pound.

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

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net


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