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Coffee Futures Surge on Supply Concerns: Commodities at Close

By Thomas Galatola

September 10, 2012

SOFT COMMODITIES

Arabica-coffee futures climbed the most since January 2009 on speculation that supplies will tighten in South America, the world’s top producing region.

Output in Colombia, the second-biggest grower of the variety, may reach 9 million bags this season, down from a previous forecast of 9.5 million, Agriculture Minister Juan Camilo Restrepo said in an interview on Radio Caracol. Exports from Brazil, the top grower, may drop as much 11 percent this year from 2011 after rains delayed the crop and hurt bean quality, an industry group said on Sept. 6.

On ICE Futures U.S. in New York, arabica coffee for December delivery surged 6.5 percent to $1.7365 a pound, the biggest gain for a most-active contract since Jan. 6, 2009.

Cocoa for delivery in December declined 0.9 percent to $2,653 a metric ton.

Cotton futures for December delivery fell 0.9 percent to 75.63 cents a pound.

Orange-juice futures for November delivery retreated 0.5 percent to $1.2685 a pound, the first drop in nine sessions.

Raw-sugar futures for October delivery advanced 0.3 percent to 19.43 cents a pound.

BASE METALS

Copper rose to a four-month high after weaker Chinese industrial production fueled bets that policy makers will take further steps to bolster growth in the world’s biggest consumer of the metal.

On the Comex in New York, copper futures for December delivery gained 1.2 percent to $3.6885 a pound. Earlier, the price reached $3.70, the highest since May 10.

On the London Metal Exchange, copper for delivery in three months rose 1.2 percent to $8,068 a ton ($3.66 a pound). Tin, lead, aluminum, zinc and nickel also gained.

NATURAL GAS

Natural gas climbed the most since July on speculation that government data will show a smaller-than-normal increase in stockpiles after production shutdowns from Hurricane Isaac.

On the New York Mercantile Exchange, gas futures for October delivery rose 4.8 percent to $2.812 per million British thermal units, the biggest gain since July 30.

U.K. gas for same-day delivery declined for the first time in four days as demand was predicted to approach a record low amid reduced Norwegian flows.

Gas for today fell 0.5 pence, or 0.8 percent, to 59.9 pence a therm at 4:45 p.m. London time. The October price dropped 1.3 percent to 59.2 pence a therm. That’s equivalent to $9.48 per million Btu. A therm is 100,000 Btu.

OIL PRODUCTS

Gasoline gained after a report that flooding and mechanical issues slowed the startup of Motiva Enterprises LLC’s Convent, Louisiana, refinery as it tries to return to production after Hurricane Isaac.

On the Nymex, gasoline futures for October delivery rose 0.1 percent to $3.024 a gallon.

Heating-oil futures for October delivery climbed 0.6 percent to $3.1668 a gallon.

LIVESTOCK

Hog futures rebounded from a 21-month low on speculation that the recent price slump will spur demand.

On the Chicago Mercantile Exchange, hog futures for October settlement rose 1.7 percent to 72.575 cents a pound, the biggest gain since Aug. 13. Prices touched 70.375 cents on Sept. 7, the lowest since Nov. 10, 2010.

Cattle futures for October delivery declined 0.6 percent to $1.2575 a pound in the biggest drop since Aug. 27.

Feeder-cattle futures for October settlement rose 0.3 percent to $1.46575 a pound.

CRUDE OIL

Crude oil was little changed as Greece struggled to qualify for aid payments and amid speculation that the Federal Reserve will announce measures this week to revive the economy.

On the Nymex, oil futures for October delivery rose 0.1 percent to $96.54 a barrel.

Brent oil for October settlement climbed 0.5 percent to $114.73 a barrel on the London-based ICE Futures Europe exchange.

Royal Dutch Shell Plc failed to sell a North Sea Forties crude cargo at a lower price than the previous trade. Glencore International Plc sold Russian Urals blend in northwest Europe at the lowest in five months.

Daily exports of the 12 main grades of North Sea crude for loading in October will climb to the highest in four months as fields return from planned maintenance.

PRECIOUS METALS

Gold retreated the most in three weeks as the dollar rose against the euro on Greece’s struggles to qualify for aid payments, curbing demand for the metal as an alternative investment.

On the Comex, gold futures for December delivery slid 0.5 percent to $1,731.80 an ounce, the biggest decline since Aug. 14.

Silver futures for December delivery fell 0.2 percent to $33.633 an ounce, the first drop in three sessions.

On the Nymex, platinum futures for October delivery increased 0.5 percent to $1,603.80 an ounce. Palladium futures for December delivery rose 2.7 percent to $672.75 an ounce, the biggest gain since Aug. 23.

GRAINS, OILSEEDS

Corn fell to the lowest in six weeks as the U.S. harvest accelerates following dry weather.

On the Chicago Board of Trade, corn futures for December delivery slid 2 percent to $7.8325 a bushel. The price earlier slumped to $7.81 a bushel, the lowest since July 27.

Soybean futures for November delivery declined 1 percent to $17.1875 a bushel in Chicago.

Wheat futures for December delivery fell 1.7 percent to $8.8975 a bushel on the CBOT.

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

To contact the editor responsible for this story: Patrick McKiernan at pmckiernan@bloomberg.net