Bloomberg News

Metals Decline as Wheat Rebounds: Commodities at Close

May 22, 2012

The Standard & Poor’s GSCI gauge of 24 commodities dropped 0.6 percent to 629.65 at 5:31 p.m. in London. The UBS Bloomberg CMCI index of 26 raw materials was down 0.7 percent at 1,490.406.

NATURAL GAS

Natural gas rose in New York for the second time in three days on speculation that warmer-than-normal weather heading into June will help drive demand from power plants and trim a supply surplus.

Natural gas for June delivery gained 7 cents, or 2.7 percent, to $2.679 per million British thermal units at 10:01 a.m. on the New York Mercantile Exchange. The futures have declined 10 percent this year. Prices climbed to $2.742 per million Btu on May 18, the highest settlement since Jan. 11.

U.K. natural gas for next-day delivery fell for a seventh day, the longest streak in more than two years, as warmer-than- usual weather cut demand for the heating fuel. Day-ahead power declined.

Next-day gas fell 0.9 percent, or 0.5 pence, to 53.3 pence a therm. That’s equivalent to $8.41 per million British thermal units and compares with $2.71 per million Btu for month-ahead U.S. gas.

U.K. natural gas: NI NUKMKT Gas market: NI GASMARKET Americas natural gas: NI AGASMARKET European natural gas: NI EGASMARKET

BASE METALS:

Copper may rise for a second day after a report showed sales of previously owned homes gained in the U.S., the world’s second-biggest user of the metal.

Copper futures for July delivery slid less than 0.1 percent to $3.5015 a pound on the Comex in New York. Before today, prices fell 8.6 percent this month on concern that faltering economies in Europe, along with slowing growth in the U.S. and China, would crimp demand.

On the LME, copper for delivery in three months rose 0.2 percent to $7,743.75 a metric ton ($3.52 a pound).

Lead, zinc and tin rose in London, while aluminum and nickel fell.

Base metals markets: NI BMMKTS

GRAINS, OILSEEDS

Wheat fell for the first time in seven sessions on speculation that rain in parts of Ukraine and Russia will ease concern about crop damage from dry weather.

Wheat futures for July delivery dropped 1.2 percent to $6.9525 a bushel on the Chicago Board of Trade. The price gained 18 percent in the previous six sessions as hot, dry weather curbed production in the U.S. southern Great Plains and in the Black Sea region that includes parts of Russia and Ukraine.

Corn fell for a second day on speculation that rain will improve prospects for newly planted crops in the U.S., the world’s biggest producer and exporter. Soybeans also declined.

Corn futures for July delivery declined 0.8 percent to $6.28 a bushel on the Chicago Board of Trade, heading for the biggest drop since May 11. Last week, the most-active contract jumped 9.4 percent on speculation that hot, dry weather reduced production in Argentina and Brazil. Corn for December delivery, after the harvest, fell 0.8 percent to $5.3625.

Soybean futures for July delivery slipped 0.6 percent to $14.0425 a bushel in Chicago, after yesterday rising 0.5 percent. The contract for delivery in November, after the harvest, fell 0.9 percent to $12.945.

Grain markets: NI GRMKTS

PRECIOUS METALS

Gold fell for a second straight day as physical demand declined and a stronger dollar crimped purchases from investors seeking an alternative asset.

Gold futures for June delivery fell 0.5 percent to $1,581.30 an ounce on the Comex in New York. Yesterday, prices touched $1,599, the highest since May 10.

Silver futures for July delivery slid 0.2 percent to $28.275 an ounce on the Comex.

Precious metal markets: NI PCMKTS

SOFT COMMODITIES

Cotton futures fell for a second day on concern that slowing world economies will erode textile production and demand for the fiber. Orange juice rose.

Cotton for July delivery retreated 1.2 percent to 76.62 cents a pound on ICE Futures U.S. in New York. The price, which slid 0.6 percent yesterday, has tumbled 16 percent this year.

Orange-juice futures for July delivery rose 2.1 percent to $1.09 a pound in New York, heading for the second consecutive advance. Before today, the commodity sank 37 percent this year.

Raw-sugar futures fell to a 20-month low as a global surplus weighs on prices and a weakening Brazilian currency accelerates sales from the world’s top producer and exporter. Cocoa and coffee also slid.

Raw sugar for July delivery fell 2.4 percent to 19.89 cents a pound on ICE Futures U.S., after reaching 19.83 cents, the lowest for a most-active contract since Sept. 1, 2010.

Cocoa futures for July delivery retreated 2.7 percent to $2,177 a metric ton in New York, heading for a second straight decline.

Arabica-coffee futures for July delivery slipped 0.1 percent to $1.7495 a pound on ICE. Prices fell the previous two sessions.

In London futures trading, refined sugar and cocoa also fell on NYSE Liffe, while robusta coffee rose.

Soft commodities markets: NI SOMKTS

LIVESTOCK

Cattle prices climbed on speculation that supplies in the U.S. are shrinking amid increasing demand for beef. Hog futures dropped.

Cattle futures for August delivery rose 0.3 percent to $1.2115 a pound on the Chicago Mercantile Exchange. Before today, the commodity slipped 0.5 percent this year.

Feeder-cattle futures for August settlement advanced 0.3 percent to $1.5955 a pound in Chicago.

Hog futures for July settlement fell 0.3 percent to 86.75 cents a pound in Chicago. Before today, the commodity was up 3.3 percent this year.

Livestock markets: NI LVMKTS

CRUDE OIL

Crude slipped as Iran agreed to let Western nuclear inspectors into the country, easing concern that the conflict over its atomic energy program would disrupt Mideast supplies.

Oil for June delivery slid $1.07, or 1.2 percent, to $91.50 a barrel at 12:09 p.m. on the New York Mercantile Exchange. The contract expires today. The more actively traded July contract fell $1.08 to $91.78. Front-month futures are down 7.4 percent this year.

Brent oil for July settlement fell 51 cents to $108.30 a barrel on the London-based ICE Futures Europe exchange.

Crude oil futures: NI CRMKTS

European Carbon Permits

European Union carbon permits for December jumped 3.7 percent to 6.97 euros a metric ton on ICE Futures Europe, after climbing 4.2 percent yesterday.

EU Carbon Emissions: NI ECBMKT

OIL PRODUCTS

Gasoline for northwest Europe rose as Gunvor Group Ltd. bought. The fuel’s crack spread, or premium to Brent crude, increased for a fifth day.

Gasoil gained for a second day on the ICE Futures Europe exchange. Naphtha’s crack, a measure of refining profitability, widened to the most in almost six months.

Gasoline barges for loading in the Amsterdam-Rotterdam- Antwerp area changed hands from $1,011 to $1,020 a metric ton, according to a survey of traders and brokers monitoring the Argus Bulletin Board. That is more than yesterday’s range of $1,004 to $1,011 a ton.

Gasoline fluctuated as Japan’s sovereign-credit rating was lowered and the Organization for Economic Cooperation and Development said Europe’s debt crisis risks damaging the global economy.

Gasoline for June delivery fell 0.03 cent to $2.9398 a gallon on the New York Mercantile Exchange, after touching $2.9589.

Regular gasoline at the pump, averaged nationwide, fell 0.9 cent to $3.68 a gallon yesterday, according to AAA. It was the lowest level since Feb. 24. Gasoline is down 6.5 percent since reaching a 2012 high of $3.936 on April 4.

Diesel and heating oil supplies probably also sank 500,000 barrels, according to the survey.

June-delivery heating oil increased 0.69 cent to $2.8672 a gallon on the exchange.

Oil Products Europe: NI OPEMKT Gasoline: NI GASOLINE Heating oil: NI HEATOIL

To contact the reporter on this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net


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