Bloomberg News

Commodities Drop on Greece, China Slowdown: Commodities at Close

July 23, 2012

The Standard & Poor’s GSCI gauge of 24 commodities fell 2.3 percent to 636.82 at 5:07 p.m. in London. The UBS Bloomberg CMCI index of 26 raw materials was down 1.7 percent at 1,545.989.

CRUDE OIL

Oil plunged on concern that Europe’s sovereign-debt crisis is deepening and as a Chinese central-bank adviser said the country’s economic expansion may slow further.

Crude oil for September delivery fell $2.84, or 3.1 percent, to $88.99 a barrel on the New York Mercantile Exchange. Futures dropped to as low as $87.94. Prices are down 10 percent this year.

Brent oil for September settlement declined $3.12, or 2.9 percent, to $103.71 a barrel on the London-based ICE Futures Europe exchange.

Oil markets: NI OILMARKET

OIL PRODUCTS

Gasoline sank the most since December on renewed concern that Europe’s debt crisis is deepening and China’s economic growth is slowing, reducing global demand for fuel.

August-delivery gasoline declined 8.33 cents, or 2.8 percent, to $2.8597 a gallon on the New York Mercantile Exchange, the largest decline since Dec. 14. This follows a gain of 4.5 percent last week.

August-delivery heating oil slid 8.79 cents, or 3 percent, to $2.8364 a gallon, after climbing 4.9 percent last week.

Regular gasoline at the pump, averaged nationwide, increased 0.4 cent to $3.471 a gallon, according to AAA. Prices are the highest since June 20 after rising every day but two since July 1, gaining 14.5 cents. Gasoline reached a year-to- date high of $3.936 on April 4.

Oil Products Europe: NI OPEMKT Gasoline: NI GASOLINE Heating oil: NI HEATOIL

GRAINS, OILSEEDS

Corn fell from a record and soybeans declined on speculation slowing economic growth will curb demand for commodities.

Corn for December delivery fell 2.9 percent to $7.73 a bushel on the Chicago Board of Trade after rising to a record $8 a bushel. Soybeans fell 2.7 percent to $16.425 a bushel.

Wheat for September delivery dropped 2.7 percent to $9.2925 a bushel, after climbing to $9.4725, the highest price for a most-active contract since August 2008. Milling wheat for November delivery traded on NYSE Liffe in Paris slipped 1.3 percent to 266.25 euros a metric ton.

Grain markets: NI GRMKTS

SOFT COMMODITIES

Sugar prices fell from a 16-week high on concern that the crisis in Europe will crimp demand for commodities, including the sweetener. Coffee, cotton and orange juice also declined, while cocoa gained.

Raw sugar for October delivery fell 0.4 percent to 23.83 cents a pound on ICE Futures U.S. in New York, after reaching 24 cents, the highest since March 29.

Also on ICE, arabica-coffee futures for September delivery dropped 1 percent at $1.85 a pound, while cotton futures for December delivery fell 0.7 percent to 72.44 cents a pound.

Orange-juice futures for September delivery slid 1.7 percent to $1.0815 a pound in New York, the lowest since June 14.

Cocoa futures for September delivery jumped 1.2 percent to $2,256 a metric ton on ICE, erasing an earlier loss of 1.8 percent.

Soft commodities markets: NI SOMKTS

BASE METALS

Copper futures fell to a three-week low on concern that the deepening debt crisis in Europe will diminish prospects for demand.

Copper futures for September delivery declined 2.3 percent to $3.367 a pound on the Comex in New York. Earlier, the price touched $3.342, the lowest for a most-active contract since June 29.

On the London Metal Exchange, copper for delivery in three months fell 1.7 percent to $7,419 a metric ton ($3.37 a pound).

Aluminum, zinc, lead, tin and nickel also dropped in London.

Base metals markets: NI BMMKTS

PRECIOUS METALS

Gold futures fell to the lowest price in more than a week as concern that Europe’s debt crisis is deepening boosted the dollar and curbed demand for the metal as an alternative investment.

Gold futures for August delivery fell 0.7 percent to $1,571 an ounce on the Comex in New York, after touching $1,562, the lowest for a most-active contract since July 12. The price fell 0.6 percent last week and was up 1 percent this year through July 20.

Silver futures for September delivery dropped 1.8 percent to $26.81 an ounce in New York.

Precious metal markets: NI PCMKTS

LIVESTOCK

Hog futures dropped the most in almost a week on signs of increasing supplies and weak demand. Cattle prices rose.

Hog futures for October settlement fell 0.8 percent to 79.2 cents a pound on the Chicago Mercantile Exchange. A close at that level would be the biggest loss since July 17. As of July 20, prices were down 5.3 percent this year.

Cattle futures for October delivery increased 0.5 percent to $1.2375 a pound in Chicago. The commodity has increased 1.4 percent this year through July 20.

Feeder-cattle futures for August settlement climbed 0.6 percent to $1.3695 a pound.

Livestock markets: NI LVMKTS

NATURAL GAS

Natural-gas futures climbed to the highest price in almost seven months on forecasts for hotter-than-normal weather heading into August that may boost fuel demand from power plants.

Gas for August delivery rose 2.7 cents, or 0.9 percent, to $3.108 per million British thermal units on the New York Mercantile Exchange after rising to $3.13, the highest intraday price since Dec. 29. Gas is up 4 percent this year.

U.K. natural gas for winter fell to a 17-month low as warmer-than-average weather cut demand and oil declined the most in a month. Power for tomorrow slumped.

Gas for the six months from October dropped as much as 2 percent to 61.85 pence a therm, the least since February 2011, according to broker prices compiled by Bloomberg. August gas was 1.4 percent lower at 53.15 pence a therm. That’s equivalent to $8.25 per million British thermal units and compares with $3.04 per million Btu for front-month U.S. gas.

U.K. natural gas: NI NUKMKT Gas market: NI GASMARKET Americas natural gas: NI AGASMARKET European natural gas: NI EGASMARKET

European Carbon Permits

European Union carbon for December fell 1 cent, or 0.1 percent, to 7.13 euros ($8.64) on the ICE Futures Europe exchange in London.

EU Carbon Emissions: NI ECBMKT

To contact the reporter on this story: Tom Metcalf in London at tmetcalf7@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net


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