Bloomberg News

Crude, Gold Gain; Copper Prices Decline: Commodities at Close

September 04, 2012

The Standard & Poor’s GSCI gauge of 24 commodities climbed 0.8 percent to 680.6599 at 4:31 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials gained 0.9 percent to 1,616.196.

CRUDE OIL

Oil climbed to the highest intraday price in more than a week in New York on speculation central banks will take more steps to boost economic growth, spurring demand for raw materials.

Oil for October delivery increased as much as 88 cents to $97.35 a barrel in electronic trading on the New York Mercantile Exchange, the highest intraday price since Aug. 27, and was at $96.91 at 8:53 a.m. London time. There was no floor trading yesterday because of the U.S. Labor Day holiday, and transactions since the Aug. 31 close will be booked with today’s trades for settlement. Prices are 1.9 percent lower this year.

OIL PRODUCTS

The premium of gasoil, or diesel, to Asian marker Dubai crude was down 1 cent at $19.68 a barrel at 10:07 a.m. Singapore time, according to data from PVM Oil Associates Ltd. , a broker. This crack spread, a measure of processing profit, narrowed for the fourth time in five days. Gasoil swaps for October rose $1.33, or 1 percent, to $132.35 a barrel, PVM said. That’s the highest since Aug. 23.

Naphtha swaps for October climbed $13, or 1.3 percent, to $990.50 a metric ton, according to PVM. The petrochemical and gasoline feedstock was the highest since April 30. Naphtha’s premium to London-traded Brent crude futures gained $10.58 to $115.80 a ton, according to data compiled by Bloomberg at 12:32 p.m. Singapore time. The difference, also known as the crack spread, was the widest in six days.

BASE METALS

Copper declined for the first time in three days after the European Union’s outlook was cut to negative by Moody’s Investors Service ahead of meetings of the region’s policy makers today.

The metal for delivery in three months lost as much as 0.5 percent to $7,640 a metric ton before trading at $7,657.25 on the London Metal Exchange at 3:10 p.m. Shanghai time.

Zinc and tin declined in London, while aluminum gained. Lead and nickel were little changed.

PRECIOUS METALS

Gold gained to the highest level in more than five months as global data strengthened the case for more central-bank measures to boost growth, increasing demand for the metal. Silver climbed to the highest price since April.

Immediate-delivery gold rose as much as 0.3 percent to $1,697.20 an ounce, the most expensive since March 13, and was little changed at $1,694.18 at 2:26 p.m. in Singapore. Assets in gold-backed exchange-traded products, which reached a record 2,460.462 metric tons on Aug. 29, stood at 2,459.963 tons on Aug. 31, according to data tracked by Bloomberg.

Cash platinum rose for a third day, adding 0.5 percent to $1,555.93 an ounce. Palladium also advanced for a third day, increasing as much as 1.6 percent to $640.75 an ounce, and last traded at $638.50.

GRAINS, OILSEEDS, SOFT COMMODITIES

Soybeans and the meal that’s crushed from the oilseed gained to records in Chicago as drought in the U.S. cut global supplies, and after Federal Reserve Chairman Ben S. Bernanke hinted at extra stimulus. Corn and wheat advanced.

Soybeans for November-delivery rose as much as 1.9 percent to $17.89 a bushel on the Chicago Board of Trade, and traded at $17.84 at 1:48 p.m. in Singapore. Soybean-meal futures gained as much as 1.4 percent to $540.80 per 2,000 pounds, and were at $540.60. U.S. markets were closed for a holiday yesterday.

Corn for December delivery rose as much as 1.3 percent to $8.0975 a bushel in Chicago and traded at $8.075. The price reached a record $8.49 on Aug. 10. December-delivery wheat gained as much as 1 percent to $8.9875 a bushel, taking most- active gains this year to 38 percent.

Palm oil climbed to the highest level in more than a week on speculation that further monetary stimulus in the U.S. amid a rally in soybeans to a record due to a drought will boost demand for the tropical oil.

The November-delivery contract advanced as much as 0.9 percent to 3,100 ringgit ($999) a metric ton on the Malaysia Derivatives Exchange, the highest level since Aug. 27, and was at 3,079 ringgit at 11:38 a.m. in Kuala Lumpur.

Rubber retreated from a one-week high after the European Union’s economic outlook was cut by Moody’s Investors Service, deepening concern that the region’s debt crisis will weaken demand for the commodity used in tires.

To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net


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