Bloomberg News

Wheat Rises to 14-Month High, Grains Surge: Commodities at Close

July 09, 2012

The Standard & Poor’s GSCI gauge of 24 commodities added 1.8 percent to 615.94 at 3:54 p.m. New York time. The UBS Bloomberg CMCI index of 26 raw materials added 1.7 percent to 1,522.9225.

GRAINS

Wheat futures rose to a 14-month high as hot, dry weather in the past two weeks curbed prospects for the spring crop in the northern portion of the U.S. Great Plains.

No rain has fallen in 14 days in areas of North Dakota, the biggest U.S. wheat producer, National Weather Service data show. About 71 percent of the spring crop was in good or excellent condition as of July 1, down from 77 percent a week earlier, U.S. Department of Agriculture data show.

Wheat futures for September delivery gained 2.7 percent to close at $8.2825 a bushel on the Chicago Board of Trade. Earlier, the price reached $8.4475, the highest for a most- active contract since April 27, 2011.

Corn futures for December delivery, after the harvest, jumped 5.3 percent to close at $7.30 a bushel on CBOT. Earlier, the price soared by the exchange limit of 40 cents to $7.33, the highest level for a most-active contract since Sept. 13.

Soybean futures for November delivery gained 2.8 percent to $15.4775 a bushel after reaching $15.7125, the highest level since July 15, 2008.

SOFT COMMODITIES

Sugar rose, entering a bull market, as supply concern mounted after dry weather threatened crops in India and rain delayed the harvest in Brazil, the world’s top producer. Cocoa, coffee, cotton and orange juice also gained.

Raw sugar for October delivery climbed 2 percent to settle at 22.7 cents a pound on ICE Futures U.S. in New York. The price has surged 20 percent from this year’s closing low of 18.9 cents on June 4, entering a bull market.

Cocoa futures for September delivery rose 3 percent to $2,319 a metric ton, the biggest gain since June 27.

Arabica-coffee futures for September delivery advanced 3.3 percent to $1.8235 a pound.

Cotton futures for December delivery advanced 0.1 percent to 70.69 cents a pound.

Orange-juice futures for September delivery gained 1.5 percent to $1.29 a pound. The price rose for the fourth straight session, the longest rally since mid-April.

CRUDE OIL

Oil rose for the first time in three days as a labor strike threatened to halt all offshore oil and gas production in Norway, Western Europe’s biggest exporter.

Oil for August delivery rose $1.54, or 1.8 percent, to settle at $85.99 a barrel on the New York Mercantile Exchange. Prices are down 13 percent this year.

Brent crude for August settlement gained $2.13, or 2.2 percent, to $100.32 a barrel on ICE.

OIL PRODUCTS

Gasoline rose on speculation that a struggling U.S. jobs market, Europe’s debt crisis and a slowdown in China will prompt more fiscal easing to stimulate growth.

August-delivery gasoline advanced 4.34 cents, or 1.6 percent, to settle at $2.7594 a gallon on the Nymex, the third gain in four days.

Heating oil for August delivery rose 3.91 cents, or 1.4 percent, to settle at $2.749 a gallon on the exchange.

NATURAL GAS

Natural gas futures in New York rose the most in three weeks as forecasts for hotter-than-normal weather in the northern half of the U.S. signaled increased demand from power plants to run air conditioners.

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 Nymex.

PRECIOUS METALS

Gold futures rose for the first time in three sessions on signs of increasing demand from China.

In May, imports by China from Hong Kong jumped sixfold to 75,635.7 kilograms (75.6 metric tons) from a year earlier, Hong Kong government data showed. The nation “remains the most important player on the global gold market,” Commerzbank AG said in a report.

Gold futures for August delivery rose 0.6 percent to settle at $1,589.10 an ounce on the Comex in New York. The price fell 2.6 percent in the previous two sessions.

Silver futures for September delivery jumped 1.9 percent to $27.444 an ounce.

On the Nymex, platinum futures for October delivery dropped 0.2 percent to $1,445.90 an ounce. Palladium futures for September delivery advanced 0.6 percent to $583.90 an ounce.

BASE METALS

Copper rose for the first time in three sessions on speculation that China will take more steps to spur its economy, bolstering the outlook for metals demand.

Copper futures for September delivery gained 0.6 percent to settle at $3.4315 a pound on the Comex in New York.

On the London Metal Exchange, copper for delivery in three months climbed 0.4 percent to $7,560 a ton ($3.43 a pound).

Nickel, aluminum, lead, zinc and tin also gained in London.

LIVESTOCK

Hog futures posted their biggest gain in more than a week on speculation that lower temperatures in the U.S. Midwest are easing a heat wave that slowed pork demand for outdoor grilling. Cattle prices dropped.

Hog futures for August settlement rose 0.7 percent to settle at 93.95 cents a pound on Chicago Mercantile Exchange, the biggest gain since June 29. Prices are up 11 percent this year.

Cattle futures for August delivery fell 0.1 percent to settle at $1.1905 a pound in Chicago, after reaching $1.184, the lowest level since June 28. The commodity has dropped 2 percent this year.

To contact the reporter on this story: Aaron Clark in New York at aclark27@bloomberg.net

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


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