Bloomberg News

Wheat Advances on Russian Supply Concerns: Commodities at Close

August 16, 2012

The Standard & Poor’s GSCI gauge of 24 raw materials rose 0.8 percent to settle at 667.67 at 3:57 p.m. in New York, led by wheat.

The UBS Bloomberg CMCI index of 26 prices gained 0.5 percent to 1,572.08.

GRAINS, OILSEEDS

Wheat posted the biggest gain in almost two weeks on speculation that a reduced harvest in Russia will boost demand for supplies from the U.S., the world’s top exporter.

Farmers in Russia, the third-biggest shipper last year, have harvested 27.9 million metric tons in 2012, 17 percent less than in 2011, as hot weather cuts yields, the government said today. In 2010, prices surged 47 percent after the nation’s most-severe drought in 50 years led to an export ban for 10 months.

Wheat futures for December delivery climbed 1.8 percent to $8.8175 a bushel on the Chicago Board of Trade, the biggest gain for a most-active contract since Aug. 3.

Corn futures for December delivery rose 0.4 percent to $8.075 a bushel.

Soybean futures for November delivery fell 0.6 percent to $16.2525 a bushel.

CRUDE OIL

Crude oil climbed above $95 a barrel for the first time in three months as U.S. building permits reached a four-year high and equities advanced, adding to optimism that faster economic growth will boost demand.

Oil futures for September delivery increased 1.3 percent to $95.60 a barrel on the New York Mercantile Exchange. Earlier, the price reached $95.75, the highest since May 14.

Brent crude for September settlement gained 0.6 percent to $116.90 on the London-based ICE Futures Europe exchange.

Morgan Stanley bought a cargo of Forties crude at a higher premium than the previous trade. Vitol Group failed to sell Russian Urals and Nigerian Escravos grades for a second day.

Angola, Africa’s second-largest oil producer, will increase its exports in October to 54 cargoes, three more than next month, according to a preliminary loading program obtained by Bloomberg.

OIL PRODUCTS

Heating oil rose to the highest in 15 weeks on speculation that U.S. inventories will be tight heading into the winter and that demand for diesel exports will increase.

On the Nymex, heating-oil futures for September delivery rose 1.2 percent $3.1229 a gallon on the New York Mercantile Exchange, the highest settlement since May 2.

Gasoline futures for September delivery were little changed at $3.0832.

BASE METALS

Copper rose the most in more than a week as U.S. building permits jumped to a four-year high, adding to signs of improvement in the housing market.

On the Comex in New York, copper futures for December delivery rose 1 percent to $3.3935 a pound, the biggest gain since Aug. 7. The metal has fallen 2.9 percent this quarter on concerns that the debt crisis in Europe and slowing growth in China would erode demand.

On the London Metal Exchange, copper for delivery in three months advanced 0.9 percent to $7,449 a metric ton ($3.38 a pound).

Aluminum, lead, tin and nickel also rose in London. Zinc fell.

PRECIOUS METALS

Gold posted the biggest gain in almost two weeks on mounting speculation that China will take additional steps to spur economic growth, boosting the appeal of the precious metal as an inflation hedge.

On the Comex, gold futures for December delivery rose 0.8 percent to $1,619.20 an ounce, the biggest gain since Aug. 3.

Silver futures for December delivery jumped 1.4 percent to $28.298 an ounce, the biggest gain since Aug. 3.

On the Nymex, platinum futures for October delivery climbed 2.8 percent to $1,435.20 an ounce Mercantile Exchange, the biggest gain June 29. After the close of floor trading, the metal reached $1,444.10, the highest since July 10.

Palladium futures for September delivery advanced 0.9 percent to $583.45 an ounce.

SOFT COMMODITIES

Coffee fell, capping the longest slump in 31 months, on signs of rising supplies in the U.S., the world’s biggest consumer and importer.

On ICE Futures U.S. in New York, arabica coffee for December delivery fell 1.9 percent to $1.618 a pound. The contract dropped for the eighth straight session, the longest slump since January 2010.

Raw-sugar futures for October delivery dropped 0.7 percent to 20.15 cents a pound. The price fell for the 13th straight session, the longest slump since at least January 1961.

Cocoa futures for December delivery declined 1.5 percent to $2,400 a ton.

Cotton futures for December delivery slid 0.7 percent to 72.59 cents a pound.

Orange-juice futures for November delivery fell 1.2 percent to $1.0805 a pound.

NATURAL GAS

Natural gas dropped for the second straight day amid forecasts for cooler-than-normal weather that may reduce fuel demand for electricity generation and add to a supply glut.

On the Nymex, gas futures for September delivery fell 0.9 percent to $2.724 per million British thermal units.

U.K. gas for the next day declined the most in five weeks as flows from the North Sea and liquefied-fuel terminals increased.

Gas fell as much as 3.15 pence to 51 pence a therm and traded at 51.35 pence at 4:50 p.m. London time. The September price was little changed at 55.6 pence a therm, equivalent to $8.75 per million Btu. A therm is 100,000 Btu.

LIVESTOCK

Cattle futures fell the most in two weeks on speculation that the highest beef prices since early July will trim demand.

on the Chicago Mercantile Exchange, cattle futures for October delivery fell 0.9 percent to $1.2555 a pound, the biggest loss since July 31.

Feeder-cattle futures for October settlement slid 1 percent to $1.44125 a pound.

Hog futures for October settlement rose less than 0.1 percent to 75.625 cents a pound.

To contact the reporter on this story: Patrick McKiernan in New York at pmckiernan@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net


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