Bloomberg News

Oil, Copper Drop on Outlook for Economy: Commodities at Close

September 26, 2012

The Standard & Poor’s GSCI gauge of 24 commodities fell 0.6 percent to 654.97 at 5:34 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials dropped 0.5 percent to 1,613.079.

CRUDE OIL

Oil fell to the lowest level in seven weeks after a report showed rising U.S. stockpiles and the Federal Reserve Bank of Philadelphia President Charles Plosser said a new stimulus plan probably won’t boost economic growth.

Crude for November delivery fell as much as $1.04 to $90.33 a barrel in electronic trading on the New York Mercantile Exchange and was at $90.35 at 9:20 a.m. London time. Futures slid 56 cents to $91.37 yesterday, the lowest close since Aug. 2. They are up 6.3 percent this quarter and down 8.6 percent this year.

OIL PRODUCTS

Japan naphtha’s premium to London-traded Brent crude futures fell $8.39, or 8.3 percent, to $92.98 a metric ton at 11:15 a.m. Singapore time, according to data compiled by Bloomberg. This spread narrowed for the first time since Sept. 20, signaling refining profits from making the fuel have fallen. Naphtha swaps for October dropped $10.50, or 1.1 percent, to $923 a ton, according to data from PVM Oil Associates Ltd., a broker.

Gasoil’s premium to Dubai crude was at $19.49 a barrel, up 3 cents at 10:21 a.m. Singapore time, according to PVM. The spread fell to $19.46 yesterday, the lowest since Sept. 17. Gasoil swaps for October fell 20 cents, or 0.2 percent, to $126.55 a barrel, PVM data showed.

BASE METALS

Copper dropped on concern that stimulus measures announced by central banks from the U.S. to Japan, won’t be enough to bolster global economic growth, curbing demand prospects for industrial metals.

Copper for delivery in three months lost as much as 1.1 percent to $8,185 a metric ton on the London Metal Exchange and traded at $8,200 at 4:15 p.m. in Tokyo. The metal is up 7.7 percent this month, the most since January. December-delivery metal lost 0.6 percent to $3.7375 a pound on the Comex.

January-delivery copper closed little changed at 59,150 yuan ($9,381) a ton on the Shanghai Futures Exchange, set for a quarterly advance. Financial markets in China, the biggest consumer, will be closed next week for the National Day holiday.

PRECIOUS METALS

Gold gained in London on signs demand is strengthening in euros and Indian rupees.

Gold in euros jumped 0.4 percent today and in Indian rupees climbed 0.3 percent, the first increase in a week. Prices in dollars have gained 10 percent this quarter, the most in two years, as the Federal Reserve took more steps to boost growth. The Fed said its third quantitative easing, started Sept. 13, is open-ended until employment improves. The U.S. unemployment rate probably rose this month, economists said before the Oct. 5 report.

Gold for immediate delivery rose 0.1 percent to $1,762.85 an ounce by 10:12 a.m. in London. The futures declined 0.1 percent to $1,765.20 an ounce on the Comex in New York.

GRAINS, OILSEEDS, SOFT COMMODITIES

Soybeans dropped, paring a fourth quarterly advance in Chicago, as rainfall improved planting conditions in Brazil and the harvest in the U.S. accelerated, boosting global supplies of the oilseed.

The November-delivery contract fell as much as 0.8 percent to $15.99 a bushel on the Chicago Board of Trade and was at $16.0225 at 12:54 p.m. in Singapore. Prices, which touched a record this month as drought hurt the U.S. crop, have risen 12 percent since June 30. The May-delivery contract fell as much as 0.7 percent to 4,916 yuan ($779) a metric ton on China’s Dalian Commodity Exchange, and was at 4,923 yuan.

Corn for December delivery was little changed at $7.44 a bushel in Chicago, set to gain 17 percent this quarter after reaching an all-time high last month on the U.S. drought. Wheat for December delivery was also little changed at $8.855 a bushel in Chicago, set to advance 17 percent this quarter.

Corn for January delivery fell as much as 0.3 percent to 2,344 yuan a ton in Dalian, and traded at 2,346 yuan. January- delivery wheat dropped as much as 0.8 percent to 2,510 yuan a ton on the Zhengzhou Commodity Exchange, and was at 2,513 yuan.

Rubber dropped for a third day as concerns grew that stimulus measures by central banks around the world may not be enough to boost global growth, sapping investor appetite for the commodity used to make tires.

March-delivery rubber, the contract with the largest volume, fell to end at 253.4 yen a kilogram ($3,266 a metric ton) on the Tokyo Commodity Exchange. The most-active contract has risen 5.5 percent this quarter, trimming this year’s loss to 3.8 percent.

Palm oil fell, heading for the biggest quarterly loss since 2008, on concern that stimulus measures will fail to revive global economic growth, potentially boosting stockpiles in the biggest producing countries.

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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