Bloomberg News

Wheat Surges on Russian Drought Concerns: Commodities at Close

August 29, 2012

The Standard & Poor’s GSCI gauge of 24 raw materials rose less than 0.1 percent to settle at 668.71 at 4 p.m. in New York, led by wheat.

The UBS Bloomberg CMCI index of 26 prices advanced 0.1 percent to 1,591.45.

GRAINS, OILSEEDS

Wheat futures surged, snapping the longest slump in 11 months, on concern that a drought in Russia will erode global supplies.

Russian Deputy Prime Minister Arkady Dvorkovich will lead a meeting on Aug. 31 with government and agriculture industry experts to discuss crop data and exports, according to his press service. The country, the world’s third-biggest exporter last year, may harvest 20 percent less grain in 2013. Russia imposed an export ban in 2010, following a drought.

On the Chicago Board of Trade, wheat futures for December delivery rose 3.5 percent to $9.0575 a bushel, the biggest gain since July 19. The most-active contract dropped in the previous five sessions, the longest slide since September.

Soybean futures for November delivery gained 1.8 percent to $17.53 a bushel.

Corn futures for December delivery rose 2.3 percent to $8.135 a bushel, the biggest advance since July 30.

NATURAL GAS

Natural gas gained for the first time in five sessions on forecasts for above-average temperatures that may boost demand for the power-plant fuel.

On the New York Mercantile Exchange, gas futures for September delivery rose 0.8 percent to $2.634 per million British thermal units.

U.K. l gas for within-day delivery pared earlier losses as r demand climbed.

Gas for today slid 0.7 percent to 56.6 pence a therm at 4:06 p.m. London time, after dropping as much as 2.8 percent. September gas rallied 0.5 percent to 57.05 pence a therm. That’s equivalent to $9.04 per million Btu. A therm is 100,000 Btu.

LIVESTOCK

Cattle futures rose the most in a month on mounting concern that the worst U.S. drought since 1956 is forcing livestock producers to shrink their herds after feed costs surged.

On the Chicago Mercantile Exchange, cattle futures for October delivery climbed 1.4 percent to $1.255 a pound, the biggest gain since July 27.

Feeder-cattle futures for October settlement gained 0.2 percent to $1.448 a pound.

Hog futures for October settlement increased 0.6 percent to 73.7 cents a pound.

SOFT COMMODITIES

Cocoa futures climbed to a nine-month high on concern that below-average rainfall may reduce output in West Africa.

On ICE Futures U.S. in New York, cocoa for December delivery rose 0.2 percent to $2,574 a metric ton. Earlier, the price reached $2,600, the highest since Nov. 10.

Raw-sugar futures for October delivery slid 1.8 percent to 19.76 cents a pound.

Arabica-coffee futures for December delivery fell 0.8 percent to $1.6665 a pound.

Cotton futures for December delivery increased 1.4 percent to 76.65 cents a pound.

Orange-juice futures for November delivery advanced 1.4 percent to $1.1565 a pound.

BASE METALS

Copper fell, capping the longest slump in 12 weeks, on speculation that the U.S. and China will refrain from new economic stimulus measures, undermining demand prospects.

On the Comex in New York, copper futures for December delivery slid 0.6 percent to $3.449 a pound.

On the London Metal Exchange, copper for delivery in three months fell 0.4 percent to $7,575 a ton ($3.44 a pound).

Tin slumped 5.2 percent to $19,620 a ton on the LME, the biggest drop since Dec. 14.

Zinc and aluminum also declined in London, while nickel and lead rose.

PRECIOUS METALS

Gold retreated for the second straight day on signs that the Federal Reserve faces less pressure to take steps to bolster the U.S. economy, eroding demand for the metal as an inflation hedge.

On the Comex, gold futures for December delivery declined 0.4 percent to $1,663 an ounce. Yesterday, the metal dropped 0.4 percent.

Silver futures for December delivery fell 0.1 percent to $30.922 an ounce.

On the New York Mercantile Exchange, platinum futures for October delivery dropped 10 cents to $1,520.30 an ounce. Palladium futures for December delivery slid 0.7 percent to $636.50 an ounce.

CRUDE OIL

Crude oil fell after U.S. petroleum stockpiles unexpectedly gained and Hurricane Isaac made landfall, reducing the threat to offshore platforms and rigs in the Gulf of Mexico.

On the Nymex, oil futures for October delivery declined 0.9 percent to $95.49 a barrel.

Brent oil for October settlement slid 4 cents to $112.54 a barrel on the London-based ICE Futures Europe exchange.

Mercuria Energy Trading SA and BP Plc failed to sell North Sea Forties crude at lower prices than yesterday. Vitol Group withdrew its offer for Russian Urals blend in northwest Europe.

Libya’s state-run National Oil Corp. increased its official selling price for benchmark Es Sider grade for September to a discount of 70 cents from $1.30 a barrel less than Dated Brent in August, according to a price list obtained by Bloomberg News.

OIL PRODUCTS

Gasoline fell as petroleum inventories climbed and on speculation that refineries escaped major damage from Isaac.

On the Nymex, gasoline futures for September delivery slid 0.8 percent to $3.1003 a gallon.

Heating-oil futures for September delivery dropped 0.1 percent to $3.1157 a gallon.

To contact the reporter on this story: Thomas Galatola in New York at tgalatola@bloomberg.net

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


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