Bloomberg News

Oil, Gold and Copper Slide; Corn Rallies: Commodities at Close

June 04, 2012

The Standard & Poor’s GSCI gauge of 24 commodities dropped 0.7 percent to 576.85 at 4:21 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials fell 0.1 percent to 1,413.233.

CRUDE OIL

Oil fell for a fifth day in New York to the lowest price in almost eight months on signs of an economic slowdown in the U.S. and China. London’s Brent crude dropped from the lowest close in one and a half years.

Futures dropped as much as 2.1 percent to the lowest intra- day price since Oct. 7, extending last week’s 8.4 percent decline after U.S. unemployment rose and payrolls increased less than the most-pessimistic forecasts.

NATURAL GAS

Natural gas rebounded after forecasts for cooler weather in the eastern U.S. pulled futures to a four-week low in New York.

OIL PRODUCTS

Singapore gasoil swaps for July declined $2.31, or 2.1 percent, to $110.55 a barrel, PVM data showed. The premium of gasoil to Dubai crude was at $15.80 a barrel, down 6 cents.

Jet fuel traded at a premium of 85 cents a barrel to gasoil, down 5 cents. This spread, also known as the regrade, increased threefold in May, signaling it is more profitable to make aviation fuel compared with a month earlier.

Naphtha swaps for July dropped $5, or 0.6 percent, to $785 a ton, PVM data showed. Japan naphtha’s premium to London-traded Brent crude futures rose $1.48, or 3.1 percent, to $49.91 a ton, according to data compiled by Bloomberg.

Singapore fuel oil’s discount to Dubai crude, a measure of refining losses from making the fuel, widened to $1.25 a metric ton at 10:13 a.m. Singapore time from $1.09 on June 1, according to data from PVM Oil Associates Ltd. The spread is at the widest since May 29.

PRECIOUS METALS

Gold declined, after rising the most in more than three years, as some investors sold the metal to raise cash following losses in equities and other commodities. Silver, platinum and palladium retreated.

Immediate-delivery gold fell as much as 0.6 percent to $1,614.88 ounce and was at $1,619.15 at 3:13 p.m. in Singapore. Bullion climbed 4.1 percent on June 1, the most since January 2009, after worse-than-expected U.S. jobs data increased speculation the Federal Reserve may take steps to boost growth.

Cash platinum fell for the first time in three days, dropping as much as 1 percent to $1,430.75 an ounce, before trading at $1,434.25. One ounce of platinum bought as little as 0.8807 ounce of gold today, the least since Jan. 10, according to data compiled by Bloomberg.

BASE METALS

Copper declined to the lowest in more than five months in New York after data from the U.S. and China fueled concern that demand was slowing in the two largest users.

GRAINS, SOFT COMMODITIES

Corn rallied on concerns that the dry weather in parts of the Midwest, the largest growing region in the U.S., may cut yields and derail efforts to boost production to a record in the world’s biggest exporter.

The July-delivery contract climbed as much as 2 percent to $5.625 a bushel on the Chicago Board of Trade and traded at $5.6225 at 3:52 p.m. Singapore time. Futures tumbled to an 18- month low of $5.51 on June 1 as economic data from Europe, Asia and the U.S. indicated commodity demand will ebb.

Soybeans for November delivery gained as much as 1 percent to $12.70 a bushel, before trading unchanged at $12.58. Wheat for July delivery added 0.5 percent to $6.155 a bushel.

Rubber dropped for a fourth day, tumbling to the lowest level since November 2009, as weak economic data from the U.S. and China raised concern that slowing global growth may cut demand for the commodity.

The November-delivery contract lost as much as 5.9 percent to 240.3 yen a kilogram ($3,074 a metric ton), the lowest level for the most-active contract since Nov. 30, 2009. Futures traded at 240.8 yen at 12:53 p.m. on the Tokyo Commodity Exchange, after falling 4.4 percent last week for a fourth weekly decline.

Palm oil dropped for a fourth day to the lowest in seven months on concern that demand may weaken as data showed signs of a slowdown in the U.S. and China.

To contact the reporter on this story: Sharon Chen in Singapore at schen462@bloomberg.net

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


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