Bloomberg News

Oil, Copper, Gold, Soybeans Set to Decline: Commodities at Close

June 12, 2012

The Standard & Poor’s GSCI gauge of 24 commodities fell 0.5 percent to 579.54 at 5:02 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials dropped 0.25 percent to 1428.671.

CRUDE OIL

Oil fell a fourth day after Saudi Arabian Oil Minister Ali al-Naimi said OPEC may need a higher output quota and the U.S. issued more exemptions from sanctions for buying Iran’s crude, reducing the risk of supply disruption.

Oil for July delivery dropped as much as $1.63 to $81.07 a barrel in electronic trading on the New York Mercantile Exchange and was at $81.55 at 8:58 a.m. London time. The contract declined 1.7 percent to $82.70 yesterday, the lowest close since Oct. 6. Prices are down 17 percent this year.

NATURAL GAS

Natural gas futures declined in New York for the second day to the lowest level since April on forecasts for cooler weather that may reduce power-plant demand for the fuel.

Natural gas for July delivery fell 3 cents to $2.188 per million Btu on the New York Mercantile Exchange at 10:59 a.m. Singapore time. The fuel is at the lowest intraday price since April 30. The contract yesterday dropped 3.5 percent to $2.218.

OIL PRODUCTS

Naphtha swaps for July fell $26.75, or 3.4 percent, to $753.25 a ton, PVM data showed. Japan naphtha’s premium to London-traded Brent crude futures fell $22.83 to $18.84 a ton, PVM data showed.

Singapore gasoil swaps for July fell $2.45, or 2.2 percent, to $110.30 a barrel, PVM data showed. The premium of gasoil to Dubai crude was at $15.63 a barrel, up 3 cents.

Jet fuel traded at a premium of 90 cents a barrel to gasoil, up 5 cents from yesterday. This spread, also known as the regrade, is 20 cents higher than a week earlier.

PRECIOUS METALS

Gold declined for the first time in three days, dropping with other commodities, on concern that a bailout of Spanish banks won’t stop the European debt crisis from spreading.

Immediate-delivery gold lost 0.4 percent to $1,590.80 an ounce by 9:14 a.m. in London. August-delivery bullion declined 0.4 percent to $1,591.20 an ounce on the Comex in New York.

BASE METALS

Copper declined to near the lowest level in more than five months on skepticism Spain’s 100 billion euro ($125 billion) bailout will halt Europe’s debt crisis, curbing demand for industrial metals.

GRAINS, OILSEEDS, SOFT COMMODITIES

Soybeans advanced as crop conditions in the U.S., the world’s largest grower and exporter, deteriorated on dry weather, potentially paring global supplies amid rising demand.

November-delivery soybeans increased as much as 0.7 percent to $13.41 a bushel on the Chicago Board of Trade, before trading at $13.38 at 3:20 p.m. Singapore time.

July-delivery corn advanced as much as 1 percent to $5.98 a bushel and last traded at $5.935. Wheat for July delivery gained 0.9 percent to $6.36 a bushel.

Soybean futures for November delivery, the contract with the highest open interest, slid 0.1 percent to settle at $13.3125 a bushel on the CBOT. The July contract declined 0.1 percent to $14.2475.

Rubber fell on concern that a bailout for Spain’s banks won’t tame Europe’s debt crisis, reducing demand for industrial commodities such as rubber and reversing gains that the assistance had spurred.

The November-delivery contract dropped as much as 3.7 percent to 235.5 yen a kilogram ($2,971 a metric ton) and traded at 238.8 yen on the Tokyo Commodity Exchange at noon local time. The commodity advanced 2.9 percent on June 11.

Palm oil dropped on speculation that output in Malaysia, the second-largest grower after Indonesia, will expand in the coming months as yields improve.

To contact the reporter on this story: Ee Chien Chua in Singapore at echua27@bloomberg.net

To contact the editor responsible for this story: Christian Schmollinger at christian.s@bloomberg.net


Steve Ballmer, Power Forward
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus