Bloomberg News

Wheat, Corn, Coffee Fall; Oil, Gold Gain: Commodities at Close

June 12, 2012

The Standard & Poor’s GSCI gauge of 24 commodities fell 0.2 percent to 581.02 at 3:44 p.m. New York time. The UBS Bloomberg CMCI index of 26 raw materials dropped 0.2 percent to 1,429.073.

CRUDE OIL

Oil rose from an eight-month low on speculation that policy makers will do more to stimulate the economy and on expectations that U.S. inventories dropped.

Prices gained 0.8 percent after Federal Reserve Bank of Chicago President Charles Evans said he would support a variety of measures to generate faster job growth. Oil supplies fell the most in almost five months last week as refineries boosted output, a government report may show tomorrow.

Oil for July delivery gained 62 cents to settle at $83.32 a barrel on the New York Mercantile Exchange after dropping to $81.07, the lowest intraday level since Oct. 6. Prices are down 16 percent this year.

NATURAL GAS

Natural gas futures rose from a six-week low after the U.S. cut its 2012 production estimate by 1 percent and set odds on how much output from the Gulf of Mexico might be closed this hurricane season.

Gas increased 0.6 percent following the Energy Department report that U.S. marketed production will average 68.47 billion cubic feet a day this year, down from 69.14 billion estimated in May. There is a 70 percent probability that 5.8 billion to 16.2 billion cubic feet of Gulf of Mexico output will shut during the storm season that began June 1, the department said.

Natural gas for July delivery gained 1.4 cents to settle at $2.232 per million British thermal units on the Nymex. Yesterday’s close of $2.218 yesterday was the lowest since April 27. Gas, which touched a 10-year intraday low of $1.902 on April 19, is down 25 percent this year.

OIL PRODUCTS

Gasoline fell to the lowest level this year as Brent crude weakened, reducing the cost to produce some U.S. motor fuel, and on speculation some members of the Organization of Petroleum Exporting Countries will push for an increase in output limits.

Gasoline for July delivery fell 0.64 cent to settle at $2.6502 a gallon on the Nymex. Prices are down 1.3 percent this year after being up 27 percent through March 26.

Heating oil for July delivery fell 1.42 cents, or 0.5 percent, to $2.6215 a gallon on the exchange, a 16-month low.

PRECIOUS METALS

Gold gained for the third straight session in New York on speculation that policy makers will announce additional stimulus measures to boost growth, increasing demand for bullion as a hedge against inflation.

Gold futures for August delivery advanced 1.1 percent to settle at $1,613.80 an ounce on the Comex. Prices gained 0.6 percent in the previous two sessions.

Silver futures for July delivery jumped 1.2 percent to $28.949 an ounce in New York, advancing for the second straight day.

Platinum futures for July delivery rose 0.4 percent to $1,454.40 an ounce on the Nymex. Palladium futures for September delivery slipped 0.1 percent to $624.25 an ounce.

BASE METALS

Copper declined for the third time in four sessions after Fitch Ratings downgraded 18 Spanish banks, increasing concern that Europe’s financial crisis will be a drag on global growth.

Copper futures for July delivery slipped 0.2 percent to settle at $3.3355 a pound on the Comex in New York, extending this year’s fall to 2.9 percent.

GRAINS, OILSEEDS

Wheat dropped the most in a week after the U.S. Department of Agriculture said that global stockpiles in the 12 months that end May 31 will be larger than analysts expected.

Wheat futures for July delivery fell 2.3 percent to settle at $6.16 a bushel on the Chicago Board of Trade, the biggest drop since June 5. The price has lost 21 percent in the past year.

Soybeans rose to a one-week high after the U.S. forecast a 20 percent plunge in domestic inventories.

Soybean futures for November delivery advanced 0.4 percent to close at $13.37 a bushel on the CBOT.

Corn fell the most in two weeks after the U.S. government forecast global inventories will rise to the highest in 11 years.

Corn futures for July delivery fell 1.4 percent to $5.84 a bushel on the CBOT, the biggest loss since May 29.

SOFT COMMODITIES

Orange juice fell the most in almost three weeks after a U.S. government forecast for the Florida crop exceeded estimates by analysts.

Orange-juice futures for July delivery tumbled 2.7 percent to settle at $1.1005 a pound on ICE Futures U.S. in New York, the biggest drop for a most-active contract since May 23. The price has plunged 52 percent from a record $2.2695 on Jan. 23.

Coffee futures fell for the third straight session on speculation that demand will ebb because of the faltering global economy and ample supplies.

Arabica coffee for September delivery slid 0.9 percent to settle at $1.5535 a pound on ICE Futures U.S. in New York. The contract dropped 1.1 percent in the previous two sessions.

Cocoa futures for September delivery climbed 2.4 percent to settle at $2,231 a metric ton in New York.

Raw-sugar futures for October delivery fell 0.8 percent to 19.98 cents a pound on ICE.

In London’s NYSE Liffe, refined sugar slid, cocoa rose, while robusta coffee was unchanged.

Cotton futures for December delivery, the contract with the highest open interest, declined 0.6 percent to 68.84 cents a pound in New York. The price has tumbled 48 percent in the past 12 months.

To contact the reporter on this story: Moming Zhou in New York at mzhou29@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net


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