Bloomberg News

Crude Oil, Natural Gas Fall; Corn Rallies: Commodities at Close

July 02, 2012

The Standard & Poor’s GSCI gauge of 24 commodities fell 0.5 percent to 596.5 at 4:21 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials rose 4.12 percent to 1486.717 as of June 29.

CRUDE OIL

Oil fell in New York as investors sold contracts to profit from the biggest price surge in three years before reports today that may signal Europe’s economic slump is deepening.

Crude for August delivery dropped as much as $1.34 to $83.62 a barrel in electronic trading on the New York Mercantile Exchange. It was at $83.76 at 2:51 p.m. Singapore time. The contract gained $7.27 on June 29 to $84.96, the highest close since June 6. Prices decreased 18 percent last quarter, the most since the final three months of 2008.

NATURAL GAS

Natural gas futures slid in New York after closing last week at the highest level since January.

Futures for August delivery dipped as much as 3.4 cents, or 1.2 percent, to $2.790 per million British thermal units on the New York Mercantile exchange and were at $2.802 at 12:30 p.m. Tokyo time.

OIL PRODUCTS

The premium of gasoil to Dubai crude fell $2.67, or 16 percent, to $14.21 a barrel, the lowest since Dec. 31, 2010, according to data from PVM Oil Associates Ltd., a broker.

Singapore gasoil swaps for August rose 57 cents, or 0.5 percent, to $108.57 a barrel at 10:10 a.m. Singapore time.

Jet fuel traded at a premium of 80 cents a barrel to gasoil, up 5 cents from June 29. This spread, also known as the regrade, has decreased 20 percent from a week earlier, signaling it is less profitable to make aviation fuel.

Oil in New York fell today as investors sold contracts to profit from the biggest price surge in three years. Futures declined as much as 1.5 percent after surging 9.4 percent on June 29.

Singapore fuel oil’s discount to Dubai crude was at $3.77 a metric ton, widening by $3.75 from June 29, PVM data showed. The discount is the biggest since May 16, signaling growing losses from making the fuel.

High-sulfur fuel-oil swaps for August fell $3.25, or 0.6 percent, to $575.25 a ton. The premium of 180-centistoke fuel oil to the 380-centistoke grade widened 25 cents to $10.75 a ton, meaning bunker fuel prices fell faster than power-station fuel oil today.

PRECIOUS METALS

Gold fell, trading below $1,600 an ounce, as some investors sold the metal after its biggest gain in a month and as the dollar’s rebound against the euro trimmed demand for alternative investments. Silver and platinum dropped.

Spot gold lost as much as 0.5 percent to $1,589.22 an ounce and was at $1,592.60 at 2:02 p.m. in Singapore, after climbing 2.9 percent on June 29. Commodities rallied that day after policy makers in Europe eased repayment rules for Spanish banks, relaxed conditions for possible aid to Italy and unveiled a 120 billion-euro ($152 billion) growth plan for the region.

August-delivery bullion fell as much as 0.9 percent to $1,589.30 an ounce on the Comex in New York, and was last at $1,592.70. Spot silver slid as much as 1 percent to $27.215 an ounce, before trading at $27.3075. The metal surged 4.2 percent on June 29, the most in four months.

BASE METALS

Copper declined as some investors weighed the effect of the European agreement to help contain the region’s debt crisis and as inventories in London expanded.

Copper for delivery in three months fell 0.5 percent to $7,647.75 a ton on the London Metal Exchange at 4:44 p.m. in Seoul after climbing 4.1 percent on June 29, the biggest gain in seven months. Futures for September delivery lost 0.8 percent to $3.47 a pound on the Comex in New York.

GRAINS, OILSEEDS, SOFT COMMODITIES

Corn for delivery after the next U.S. harvest rallied to the highest level in more than nine months on concern that a heat wave may hurt yields, cutting stockpiles in the world’s biggest exporter. Soybeans and wheat advanced.

Corn for December surged as much as 4.6 percent to $6.64 a bushel on the Chicago Board of Trade, the highest price for that contract since Sept. 12. Futures were at $6.4975 at 2:28 p.m. in Singapore. The price for the most-active contract jumped 15 percent last week, the most since December 2008.

Soybeans for November delivery rose as much as 2 percent to $14.5575 a bushel, the highest price since that contract first traded in June 2009, and the most expensive for the most-active contract since May 11. The oilseed, which traded at $14.39, has gained 19 percent this year as the drought sapped soil moisture in the Midwest, the largest U.S. growing region, after similar weather cut harvests in Brazil and Argentina.

September-delivery wheat climbed as much as 2.3 percent to $7.7475 a bushel, the highest price for the most-active contract since Sept. 2, and was at $7.64.

Rubber surged the most in seven months after European leaders agreed on measures to ease the region’s debt crisis, boosting speculation that demand will recover for the commodity used in tires.

The December-delivery contract climbed as much as 5 percent, the biggest gain for the most-active contract since Dec. 1, to 252.2 yen a kilogram ($3,167 a metric ton), before settling at 246.2 yen on the Tokyo Commodity Exchange. That pared this year’s losses to 6.5 percent this year.

Palm oil climbed to a one-month high on concern that hot, dry weather in the U.S. may curb soybean yields, reducing global cooking-oil supplies.

The September-delivery contract advanced as much as 1.5 percent to 3,066 ringgit ($968) a metric ton on the Malaysia Derivatives Exchange, the highest price for the most-active contract since June 1, and was at 3,063 ringgit at 12:12 p.m. in Kuala Lumpur. Futures climbed 2.3 percent last week, trimming the quarterly decline to 12 percent, the biggest loss since the three months ended March 2011.

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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