Bloomberg News

Commodities Advance, Led by Gains in Wheat, Corn and Crude

July 09, 2012

Commodities rose for the third time in four days, driven by increases in corn and wheat as drought threatens Midwest crops.

The S&P GSCI Index of 24 raw materials climbed as much as 2.3 percent as hot, dry weather in the grain-rich Midwest erodes prospects for output in the world’s biggest grower of the crops. Separately, crude oil jumped as a labor strike may halt all offshore production in Norway, Western Europe’s top exporter.

“It’s more the fear factor than anything else,” said Dan Flynn, a trader at Price Futures Group in Chicago.

The S&P GSCI advanced 1.5 percent to 614.41 at 3:16 p.m. after earlier touching 618.86. Twenty-two of the commodities rose, led by corn, natural gas and coffee.

Corn for December delivery surged 37 cents, or 5.3 percent, to $7.30 a bushel on the Chicago Board of Trade. In intraday trading the price soared by the limit of 40 cents to $7.33.

Natural gas for August delivery gained 10.7 cents, or 3.9 percent, to settle at $2.883 per million British thermal units on the New York Mercantile Exchange. The futures tumbled 5.7 percent on July 6, the biggest one-day drop since June 7, after rising to a six-month high of $3.06.

Arabica-coffee futures for September delivery advanced 5.9 cents, or 3.3 percent to $1.8235 a pound on ICE.

Crude oil for August delivery increased $1.54, or 1.8 percent, to settle at $85.99 a barrel in New York. Futures have fallen 13 percent this year.

To contact the reporter on this story: Mario Parker in Chicago at mparker22@bloomberg.net

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


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