Bloomberg News

Corn, Copper, Crude Oil, Natural Gas Drop: Commodities at Close

May 30, 2012

The Standard & Poor’s GSCI gauge of 24 commodities fell 1 percent to 611.56 at 5:18 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials decreased 1.1 percent to 1,455.874.

CRUDE OIL

Oil fell for a second day, heading for the biggest monthly drop in more than three years, before a report that may show stockpiles climbed to the highest level since 1990 in the U.S., the world’s biggest crude user.

Crude for July delivery decreased as much as $1.01 to $89.75 a barrel in electronic trading on the New York Mercantile Exchange and was at $89.96 at 8:58 a.m. London time. The contract yesterday slid 10 cents to $90.76, the lowest close since May 24. Prices are down 14.2 percent this month, the biggest drop since December 2008.

NATURAL GAS

Natural gas futures fell, sliding as much as 12 percent in four days, on forecasts for cooler weather in the U.S. Northeast that may cut power-plant demand.

Gas for July delivery declined as much as 3.3 cents, or 1.3 percent, to $2.452 per million British thermal units in electronic trading today on the New York Mercantile Exchange. That followed yesterday’s decline of 5.4 percent, the biggest drop since March 1, as Commodity Weather Group LLC in Bethesda, Maryland, predicted normal or below-normal temperatures in the Northeast from June 3 through June 12 as a heat wave dissipates. The June contract expired yesterday.

OIL PRODUCTS

Singapore fuel oil’s discount to Dubai crude, a measure of refining losses from making the fuel, widened to $1.86 a metric ton from $1.47 yesterday, PVM data showed. The spread is at the widest since May 16.

High-sulfur fuel-oil swaps for June fell $6.25, or 1 percent, to $645 a metric ton at 10:21 a.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker.

Singapore gasoil swaps for June fell 55 cents, or 0.5 percent, to $118.30 a barrel, PVM data showed. The premium of gasoil to Dubai crude was at $14.87 a barrel, up 5 cents from yesterday.

PRECIOUS METALS

Gold declined for a second day in London as concern about Europe’s debt crisis strengthened the dollar and curbed the metal’s appeal as an alternative asset.

Bullion for immediate delivery fell 0.5 percent to $1,548.22 an ounce by 9:29 a.m. in London. Prices reached a one- week low of $1,545.88 today and are 7 percent lower in May for a fourth monthly decline, the longest losing run since 1999. August-delivery futures were little changed at $1,549.30 on the Comex in New York.

BASE METALS

Copper, poised for the biggest monthly drop since September, fell for a second day in London as a reduction of Spain’s credit rating revived concern the euro-region debt crisis may threaten demand.

Copper for three-month delivery declined 1.2 percent to $7,577 a metric ton by 9:40 a.m. on the London Metal Exchange. Prices are down 9.8 percent this month. July-delivery copper fell 1.2 percent to $3.422 a pound on the Comex in New York.

GRAINS, SOFT COMMODITIES

Corn traded near a 17-month low and wheat declined for a second day as investors shunned riskier assets on concern that the European debt crisis is deepening and as China damped speculation of a large-scale stimulus.

Corn for July delivery slipped as much as 0.7 percent to $5.5875 a bushel on the Chicago Board of Trade. Futures yesterday declined as much as 3.7 percent to $5.57, the lowest level since December 2010. They traded at $5.5925 a bushel at 3:35 p.m. Singapore time, set for an 11.9 percent decline this month, and a 13.5 percent loss this year.

July-delivery wheat fell as much as 1.5 percent to $6.4675 a bushel, the lowest for the most-active contract since May 17. Prices are down 1.1 percent this month and 0.8 percent lower this year as crop conditions improved in the U.S.

Rubber declined, snapping a three-day advance, amid expectations that production in Thailand will increase seasonally, adding to a supply glut in China.

November-delivery rubber lost as much as 2.2 percent to 265.8 yen a kilogram ($3,350 a metric ton) before settling at 271.7 yen on the Tokyo Commodity Exchange. The most-active contract has lost 13.2 percent this month, the largest drop since September, paring this year’s advance to 3.2 percent.

Palm oil fell for the first time in five days, heading for the biggest monthly loss since September 2009, on concern that demand for cooking oil in China, the biggest buyer, may weaken in the absence of stimulus measures.

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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