Bloomberg News

Corn Rebounds on U.S. Drought Concern: Commodities at Close

July 25, 2012

The Standard & Poor’s GSCI gauge of 24 commodities fell 0.6 percent to 626.36 at 4:53 p.m. in London. The UBS Bloomberg CMCI index of 26 raw materials was little changed at 1,532.616.

GRAINS, OILSEEDS

Corn and soybean futures rebounded on speculation that rain will miss many growing areas in the U.S. Midwest, heightening concerns that supplies will decline amid the most-severe drought since 1956. Wheat also gained.

Corn futures for December delivery gained 1.2 percent to $7.875 a bushel on the Chicago Board of Trade. The price fell 2.2 percent in the past two days after rising to a record $8 on July 23.

Soybean futures for November delivery jumped 2.3 percent to $16.06 a bushel. The price tumbled 6.9 percent in the past two days after surging to an all-time high of $16.915.

Wheat futures for September delivery advanced 2.6 percent to $9.0175 a bushel. Through yesterday, the price jumped 40 percent since mid-June.

Grain markets: NI GRMKTS

NATURAL GAS

U.K. natural gas gained as imports from Norway declined, tightening supplies into the network.

Within-day gas rose for a second day, climbing as much as 2.5 percent to 54.8 pence a therm in London, according to broker prices compiled by Bloomberg. August gas added 0.6 percent to 53.7 pence a therm. That’s equivalent to $8.31 per million British thermal units and compares with $3.072 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

SOFT COMMODITIES

Sugar rebounded in London and New York on speculation prices fell too far as dry weather in India, the world’s second- biggest producer, may help reduce a forecast surplus for next season. Robusta coffee fell.

White, or refined, sugar for October delivery rose 0.3 percent to $640.40 a metric ton on NYSE Liffe in London. Raw sugar for October delivery climbed 0.1 percent to 23.52 cents a pound on ICE Futures U.S. in New York, after dropping as much as 2.9 percent yesterday.

Robusta coffee for September delivery slid 1.1 percent to $2,134 a ton in London. Arabica coffee for September delivery was up 0.5 percent to $1.763 a pound in New York, after falling as much as 6.2 percent yesterday.

Cocoa for December delivery was unchanged at 1,531 pounds ($2,371) a ton on NYSE Liffe. Cocoa for September delivery climbed 0.5 percent to $2,221 a ton on ICE.

Soft commodities markets: NI SOMKTS

CRUDE OIL

Oil declined after an Energy Department report showed U.S. stockpiles unexpectedly climbed as production surged to the highest level in 13 years.

Crude oil for September delivery declined $1.28, or 1.4 percent, to $87.22 a barrel on the New York Mercantile Exchange. Futures touched $86.84, the lowest level since July 16. Oil traded at $88.48 a barrel before release of the inventory report at 10:30 a.m.

Brent oil for September settlement fell 84 cents, or 0.8 percent, to $102.58 a barrel on the London-based ICE Futures Europe exchange.

Oil markets: NI OILMARKET

OIL PRODUCTS

Gasoline extended its decline after the U.S. Energy Department reported an unexpected increase in stockpiles of the fuel.

August-delivery gasoline dropped 5.82 cents, or 2.1 percent, to $2.7666 a gallon on the New York Mercantile Exchange. The price was $2.7824 before the report was released.

Heating oil for August delivery fell 1.68 cents, or 0.6 percent, to $2.8076 a gallon. The price was $2.8188 before the report was released.

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

BASE METALS

Copper rose in New York for the first time in four sessions on speculation that European leaders will step up efforts to tackle the region’s debt crisis.

Copper futures for September delivery increased 0.6 percent to $3.3735 a pound on the Comex in New York. The metal slid 5.1 percent in the previous three sessions.

On the London Metal Exchange, copper for delivery in three months was 0.3 percent higher at $7,438 a ton ($3.37 a pound).

Zinc and nickel advanced in London, while aluminum, tin and lead fell.

Base metals markets: NI BMMKTS

PRECIOUS METALS

Gold gained the most in more than a week on speculation that European leaders may take further steps to tame the worsening debt crisis.

Gold futures for December delivery rose 1.5 percent to $1,604.60 an ounce on the Comex in New York, heading for the biggest gain for a most-active contract since July 13.

Silver futures for September delivery climbed 1.3 percent to $27.155 an ounce.

Precious metal markets: NI PCMKTS

LIVESTOCK

Hog futures rose, heading for the biggest gain in a week, as persistent heat through the U.S. Midwest slowed weight gains in animals being raised for slaughter, limiting pork output. Cattle prices dropped.

Hog futures for October settlement rose 2.1 percent to 79.65 cents a pound on the Chicago Mercantile Exchange. A close at that level would mark the biggest gain for a most-active contract since July 18. Prices through yesterday slumped 7.4 percent this year.

Cattle futures for October delivery fell 0.2 percent to $1.231 a pound in Chicago. Prices are up 1.5 percent this year through yesterday.

Feeder-cattle futures for August settlement slumped 0.8 percent to $1.3655 a pound on the CME.

Livestock markets: NI LVMKTS

EUROPEAN CARBON PERMITS

European Union carbon for December fell 35 cents, or 5 percent, to 6.85 euros ($8.30) 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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