Bloomberg News

Crude, Metals Fall on Manufacturing Report: Commodities at Close

September 04, 2012

The Standard & Poor’s GSCI gauge of 24 commodities slipped 0.4 percent to 672.55 at 4:32 p.m. in New York as oil, sugar and cotton futures fell. The UBS Bloomberg CMCI index of 26 raw materials dropped 0.3 percent to 1604.097.

SOFT COMMODITIES

Cotton futures fell the most in more than a week as improved crop prospects in India, the world’s second-largest exporter, add to the global supply outlook. Orange juice rose.

India’s biggest-growing areas will get rain until Sept. 10 as a revival in the monsoon eases drought conditions and boosts plants, the country’s Meteorological Department said today. The fiber, down 18 percent in 2012, may extend its slump as the global surplus rises in the year started Aug. 1, according to the average of 20 analyst and merchant estimates in a Bloomberg survey.

Cotton for December delivery tumbled 2 percent to settle at 75.68 cents a pound at 2:45 p.m. on ICE Futures U.S. in New York, the biggest decline since Aug. 24.

Orange-juice futures for November delivery increased 1.8 percent to $1.2115 a pound on ICE. The price rose for the fifth straight session, the longest rally in six months.

Also in New York, raw sugar futures for October delivery dropped 2.2 percent to 19.34 cents a pound on ICE.

Arabica coffee for December delivery rose 0.3 percent to close at $1.653 a pound on signs of limited supply from Brazil, the world’s largest producer. Farmers in Brazil are hoarding part of their production to wait for price increases, the National Coffee Council said in a report last week.

Cocoa futures for December delivery slumped 2.3 percent to $2,551 a metric ton in New York.

Soft commodities markets: NI SOMKTS

CRUDE OIL

Oil fell as U.S. and euro-area manufacturing contracted in August, raising concern that slower economic growth will reduce demand.

Prices dropped 1.2 percent after the Institute for Supply Management’s U.S. factory index declined more than analysts forecast. Manufacturing slipped more than initially estimated in the euro area, London-based Markit Economics reported yesterday.

Oil for October delivery decreased $1.17 to settle at $95.30 a barrel on the New York Mercantile Exchange. Prices are down 3.6 percent this year.

The U.S. manufacturing index decreased to 49.6 in August from 49.8 a month earlier, the Tempe, Arizona-based ISM said today. Economists in a Bloomberg survey projected an August reading of 50, which is the dividing line between expansion and contraction.

Oil markets: NI OILMARKET

OIL PRODUCTS

Gasoline and heating oil futures fell as U.S. Gulf Coast refineries came back online after Hurricane Isaac, boosting supply, and the contraction in U.S. manufacturing indicated oil demand may shrink.

Futures sank after Valero Energy Corp. (VLO:US) and Phillips 66 started three refineries, the last three plants remaining shut because of Hurricane Isaac.

October-delivery gasoline fell 2.06 cents, or 0.7 percent, to settle at $2.9522 a gallon on the Nymex. Prices climbed 6.6 percent last month.

Futures touched $3.0032 a gallon earlier on speculation the refinery outages would persist, reducing fuel supplies. Gasoline inventories probably declined 3 million barrels last week, the median of nine estimates in a Bloomberg survey.

Heating oil for October delivery fell 3.34 cents, or 1.1 percent, to settle at $3.1468 a gallon on the exchange. Futures gained 12 percent in August, the biggest monthly rise since September 2010.

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

NATURAL GAS

Natural gas futures climbed for a fourth day in New York, the longest winning streak since July 24, on speculation that a government report this week will show a smaller-than-normal stockpile increase.

Gas gained 2 percent. The report, scheduled for release Sept. 6, may show stockpiles rose 38 billion cubic feet in the week ended Aug. 31, according to Tim Evans, an energy analyst at Citi Futures Perspective in New York. The five-year average change is a gain of 60 billion. A surplus to average supplies has been declining since March.

Natural gas for October delivery rose 5.5 cents to settle at $2.854 per million British thermal units on the Nymex. The futures have climbed 9.2 percent from a two-month low of $2.614 on Aug. 28.

Gas inventories totaled 3.374 trillion cubic feet in the week ended Aug. 24, 12 percent above the five-year average, the Energy Department said Aug. 30 in a weekly stockpile report. The supply surplus over the five-year average has shrunk since reaching a six-year high of 61 percent on March 30.

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

PRECIOUS METALS

Gold futures topped $1,700 an ounce for the first time since March on speculation that a sluggish global economy will spur central bankers to boost monetary stimulus, increasing demand for the metal as an inflation hedge.

ISM’s U.S. factory index showed contraction for the third straight month, and manufacturing in the euro area shrank more than estimated, suggesting the region’s economy may struggle to avoid a recession in the third quarter. Last month, gold’s jumped 4.5 percent, the most since January.

Gold futures for December delivery gained 0.5 percent from Aug. 31 to settle at $1,696 at 1:36 p.m. on the Comex in New York. Earlier, the price reached $1,701.60, the highest for a most-active contract since March 13. Floor trading was closed yesterday for a U.S. holiday.

Silver futures for December delivery rose 3.1 percent to $32.411 an ounce on the Comex, after reaching $32.435, the highest since April 13.

On the New York Mercantile Exchange, platinum futures for October delivery advanced 2 percent to $1,567.50 an ounce. Palladium futures for December delivery gained 1.9 percent to $641.45 an ounce.

Precious metal markets: NI PCMKTS

BASE METALS

Copper fell for the first time in three sessions in London on ISM’s manufacturing report, which added to signs of a global economic slowdown that threatens metal demand.

In China, manufacturing last month contracted at the fastest pace since March 2009, a private survey showed yesterday.

Copper for delivery in three months slipped 0.6 percent to settle at $7,635 a metric ton ($3.46 a pound) at 5:50 p.m. on the London Metal Exchange. The metal gained 1.5 percent in the previous two sessions.

In New York, copper futures for December delivery rose 0.3 percent from Aug. 31 to close at $3.469 a pound on the Comex. Floor trading was closed yesterday for a U.S. holiday.

In London, zinc and aluminum rose, while tin, lead and nickel fell.

Base metals markets: NI BMMKTS

GRAINS, OILSEEDS

Wheat futures fell for the eighth time in nine sessions on speculation that cooler weather and rain in the U.S. southern Great Plains will boost soil moisture and allow farmers to seed winter varieties starting this month.

As much as 2 inches (5.1 centimeters) of rain may fall in parts of central and eastern Kansas in the next five days, Commodity Weather Group said. Temperatures will be lower on average in the next 10 days, the Bethesda, Maryland-based forecaster said. Little or no rain fell in the past week in Kansas, National Weather Service data show.

Wheat futures for December delivery slid 0.1 percent to settle at $8.8875 a bushel at 2 p.m. on the Chicago Board of Trade. Prices are up 36 percent this year after the worst U.S. drought since 1956 parched fields and eroded planting prospects.

Soybean futures for November delivery gained 0.7 percent to $17.6825 a bushel at 2 p.m. in Chicago after reaching a record $17.89 on signs that the U.S. drought has cut production more than the government forecast last month.

Soybean production may fall 15 percent to 2.602 billion bushels from a year earlier, Allendale Inc., a researcher and broker, said today after surveying farmers. That compares with the U.S. Department of Agriculture’s estimate of 2.692 billion on Aug. 10. Corn output will total 10.326 billion bushels, trailing the USDA’s forecast of 10.779 billion, according to Allendale. Both crops will be the smallest since 2003.

Soybean-meal futures for December delivery closed unchanged at $533.40 per 2,000 pounds in Chicago, after surging to an all- time high of $541.80.

Corn futures for December delivery climbed 0.7 percent to $8.05 a bushel on the CBOT. The most-active contract touched a record $8.49 on Aug. 10.

Grain markets: NI GRMKTS

LIVESTOCK

Cattle prices advanced to the highest in more than two weeks on signs of increasing U.S. beef demand. Hog futures were little changed.

Wholesale beef climbed 0.5 percent to $1.9057 a pound at midday, snapping a six-session slump, U.S. Department of Agriculture data show. In August, the price rose 6.6 percent, the most since February. Meat sales probably rose before the U.S. holiday weekend that ended yesterday as more people grilled outdoors.

Cattle futures for October delivery rose 0.1 percent to settle at $1.26175 a pound at 1 p.m. on the Chicago Mercantile Exchange. Earlier, the price reached $1.26325, the highest for the most-active contract since Aug. 16. The commodity is up 3.9 percent this year.

Feeder-cattle futures for October settlement advanced 0.2 percent to $1.4695 a pound.

Hog futures for October settlement rose less than 0.1 percent to 74.2 cents a pound after dropping as much as 1.2 percent. The price has declined 12 percent this year.

Livestock markets: NI LVMKTS

To contact the reporter on this story: Lynn Doan in San Francisco at ldoan6@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net


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Companies Mentioned

  • VLO
    (Valero Energy Corp)
    • $46.27 USD
    • -0.50
    • -1.08%
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