Bloomberg News

Copper, Crude Oil Rise; Gold Prices Drop: Commodities at Close

May 29, 2012

The Standard & Poor’s GSCI gauge of 24 commodities fell 0.4 percent to 631.26 at 5:13 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials decreased 0.4 percent to 1,495.480.

CRUDE OIL

Oil rose for a third day in New York as speculation that economic growth will boost fuel demand in the U.S. and China, the world’s biggest crude consumers, countered concern Europe’s debt crisis will worsen.

Crude for July delivery climbed as much as $1.13 to $91.99 a barrel in electronic trading on the New York Mercantile Exchange and was at $91.36 at 2:08 p.m. Singapore time. Floor trading was closed yesterday for the U.S. Memorial Day holiday and transactions will be booked with today’s trades for settlement purposes. Front-month prices are down 7.6 percent this year.

NATURAL GAS

Natural gas extended its decline in New York amid forecasts that cooler weather will follow a heat wave, limiting demand for fuel at power plants.

Gas for June delivery fell as much as 3.4 percent from the settlement on May 25. Floor trading was closed yesterday for the U.S. Memorial Day holiday and transactions will be booked with today’s trades for settlement purposes.

OIL PRODUCTS

The premium of gasoil, or diesel, to Asian marker Dubai crude fell 2 cents to $14.92 a barrel at 2:18 p.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. This crack spread, a measure of processing profit, is the narrowest since March 26. Gasoil swaps for June declined 80 cents, or 0.7 percent, to $119.05 a barrel, PVM said.

High-sulfur fuel oil swaps for June were down $6, or 0.9 percent, at $654 a metric ton, according to PVM. Prices slid the most since May 18. Fuel oil was at a discount of $1.14 a barrel to Dubai crude, PVM data showed. That’s the biggest gap in five days, indicating widening losses for refiners turning crude into residual products.

Naphtha swaps for June dropped $12, or 1.4 percent, to $858 a ton, according to PVM. The petrochemical and gasoline feedstock ended a two-day advance.

PRECIOUS METALS

Gold declined for the first time in three days, set for the worst run of monthly losses since 1999, as concern that Europe’s fiscal turmoil is worsening boosted the dollar. Platinum fell.

Spot gold lost as much as 0.6 percent to $1,571.43 an ounce and was at $1,578.37 at 3:04 p.m. in Singapore. Bullion is 5.2 percent lower this month, the biggest drop since December and the fourth straight monthly decline. The dollar has gained 4.4 percent against a six-currency basket including the euro in May.

Spot silver rose as much as 0.8 percent to $28.6275 an ounce, and was last at $28.6225. Palladium climbed as much as 0.6 percent to $609.13 an ounce, extending yesterday’s 2.6 percent advance, and last traded at $608.25.

BASE METALS

Copper rose for a fourth day, paring the biggest monthly drop since September, on speculation that China will do more to boost growth in the world’s biggest user and as concern eased that Greece will exit the euro.

Copper for three-month delivery on the London Metal Exchange gained 0.8 percent to $7,747.75 a metric ton at 4:40 p.m. Seoul time. Prices are down 7.8 percent this month, heading for a third monthly loss and trimming this year’s gains to 1.9 percent, amid concerns that Europe’s debt crisis will crimp demand. The July-delivery contract rose 1.3 percent to $3.494 a pound on the Comex in New York.

Copper for September delivery on the Shanghai Futures Exchange fell 0.2 percent to close at 56,080 ($8,837) a ton.

GRAINS, SOFT COMMODITIES

Wheat declined on speculation that rain in parts of Russia and Australia, the world’s second biggest exporter, may boost production. Soybeans advanced.

Wheat for July fell as much as 1.1 percent to $6.7225 a bushel on the Chicago Board of Trade and was at $6.7675 at 3:31 p.m. in Singapore, paring gains for the most-active contract to 3.7 percent this year.

Soybeans for July delivery gained as much as 1.5 percent to $14.02 a bushel, the highest since May 22, and traded at $13.9875. Prices have climbed 16 percent this year after dry weather damaged crops in South America.

July-delivery corn advanced as much as 0.9 percent to $5.8375 a bushel and traded at $5.835. Prices are set for an 8 percent decline this month, the third successive such drop, taking this year’s loss to 9.7 percent.

Palm oil climbed for a fourth day to the highest level in almost two weeks as rising exports from Malaysia, the second- largest producer, signaled a surge in demand ahead of the Muslim fasting month of Ramadan.

The August-delivery contract advanced as much as 0.9 percent to 3,173 ringgit ($1,005) a metric ton, the highest price since May 16, and ended the morning session at 3,170 ringgit in Kuala Lumpur. Futures are heading for a 8.7 percent decline in May, the biggest monthly drop since June last year.

Rubber declined, poised for the worst monthly loss in eight, amid concern that Europe’s debt crisis may be worsening, sapping demand for the commodity used in tires.

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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