Bloomberg News

Cotton Futures Advance Most in 12 Months: Commodities at Close

June 06, 2012

The Standard & Poor’s GSCI gauge of 24 raw materials rose 1.3 percent to settle at 593.06 at 3:55 p.m. New York time, led by cotton and sugar.

SOFT COMMODITIES

Cotton gained the most in a year as demand rebounded after the price slump this week to a 31-month low.

On June 4, cotton touched the lowest price since October 2009 on concern that the faltering world economy would expand a surplus of the fiber.

On ICE Futures U.S. in New York, cotton for December delivery by the exchange limit of 3 cents, or 4.6 percent, to 68.36 cents a pound, the largest increase for a most-active contract since May 31, 2011.

Raw-sugar futures for July delivery jumped 4.4 percent to 19.9 cents a pound.

Cocoa futures for July delivery climbed 1.8 percent to $2,203 a metric ton.

Orange-juice futures for July delivery rose 1.6 percent to $1.166 a pound.

Arabica-coffee futures for July delivery slid 0.2 percent to $1.559 a pound.

BASE METALS

Copper advanced the most since February on speculation that policy makers will take steps to revive economic growth as Europe’s debt crisis threatens commodity demand.

On the Comex in New York, copper futures for July delivery climbed 2.7 percent to $3.379 a pound, the biggest gain since Feb. 21.

On the London Metal Exchange, copper for delivery in three months rose 0.7 percent to $7,410 a metric ton ($3.36 a pound).

PRECIOUS METALS

Gold rose to a four-week high on speculation that the Federal Reserve will take steps to stimulate growth and as the European Central Bank said it will extend offerings of unlimited cash into 2013.

On the Comex, gold futures for August delivery gained 1.1 percent to $1,634.40 an ounce.

Silver futures for July delivery jumped 3.8 percent to $29.488 an ounce, the biggest gain since Feb. 28.

On the New York Mercantile Exchange, platinum futures for July delivery rose 2 percent to $1,469.20 an ounce, the biggest gain since Feb. 22. Palladium futures for September delivery increased 2.1 percent to $632.80 an ounce.

CRUDE OIL

Crude oil rose for the third straight day on speculation that monetary policy makers will act to spur growth, boosting fuel demand.

On the New York Mercantile Exchange, oil futures for July delivery climbed 0.9 percent to $85.02 a barrel.

Brent oil for July settlement gained 1.8 percent to $100.64 a barrel on the London-based ICE Futures Europe exchange.

Trafigura Beheer BV sold North Sea Forties crude at a higher price than the previous session. Gunvor Group Ltd. sold Russian Urals at a bigger discount than the last trade in the Mediterranean.

Exports of North Sea Brent, Forties, Oseberg and Ekofisk crudes, which make up the Dated Brent benchmark, in July will drop to the lowest in at least five years, loading programs obtained by Bloomberg News show.

OIL PRODUCTS

Heating oil had the biggest gain in almost eight weeks after European Central Bank President Mario Draghi said officials stand ready to act as the growth outlook for the euro region worsens.

On the Nymex, heating-oil futures for July delivery climbed 1.4 percent to $2.6717 a gallon, the largest gain since April 12.

Gasoline futures for July delivery rose 0.2 percent to $2.6903 a gallon.

NATURAL GAS

Natural gas declined for the first time in three days as hot weather forecast for the eastern U.S. next week will be followed by below-normal temperatures, crimping fuel demand from electricity generators to run air conditioners.

Gas futures for July delivery dropped 2.5 cents to $2.421 per million British thermal units on the Nymex.

U.K. gas rose as lower-than-normal temperatures boosted demand for the fuel, and imports from Norway and the Netherlands dropped.

Gas climbed to as much as 56.6 pence a therm and was at 56 pence at 4:31 p.m. London time. That’s equivalent to $8.66 per million Btu. A therm is 100,000 Btu.

GRAINS, OILSEEDS

Corn and soybeans rose the most in three weeks on signs that dry, warm weather will hamper developing crops in the U.S., the world’s biggest producer.

On the Chicago Board of Trade, corn futures for July delivery rose 3.3 percent to $5.8625 a bushel, the biggest gain since May 16.

Soybean futures for November delivery jumped 1.7 percent to $12.9925 a bushel.

Wheat futures for July delivery rose 1.8 percent to $6.2425 a bushel.

LIVESTOCK

Hog futures rose to a seven-week high on speculation that U.S. producers are withholding offers to meatpackers in anticipation of higher prices.

On the Chicago Mercantile Exchange, hog futures for July settlement advanced 1.2 percent to 92.7 cents a pound, the highest for a most-active contract since April 13.

Cattle futures for August delivery climbed 0.1 percent to $1.193 a pound.

Feeder-cattle futures for August settlement fell 0.8 percent to $1.5795 a pound.

-- With assistance from Matthew Brown and Sherry Su in London; Tony C. Dreibus and Jeff Wilson in Chicago; Debarati Roy, Moming Zhou, Naureen S. Malik, Marvin G. Perez and Joe Richter in New York; and Barbara J. Powell in Dallas. Editors: Thomas Galatola, Patrick McKiernan

To contact the reporter on this story: Thomas Galatola in New York at tgalatola@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net


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