Bloomberg News

Gold Falls For Third Day; Palm Oil Rises: Commodities at Close

December 06, 2012

The Standard & Poor’s GSCI gauge of 24 commodities climbed 0.01 percent to 643.30 at 5:01 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials dropped 0.04 percent to 1,592.008.

CRUDE OIL

Oil traded near its lowest price in a week in New York after a government report showed U.S. gasoline inventories increased the most in 11 years.

Crude for January delivery was at $87.77 a barrel, down 11 cents, in electronic trading on the New York Mercantile Exchange at 4:25 p.m. Singapore time. Prices fell 62 cents yesterday to close at $87.88 a barrel, the lowest since Nov. 28. Futures have dropped 11 percent this year.

OIL PRODUCTS

Asia’s naphtha crack spread shrank, signaling reduced profit for refiners. Jet fuel extended losses versus gasoil.

• Light Distillates • Naphtha’s premium to London Brent crude down $12.65 at $92.82/ton at 11 a.m. Singapore time, according to data compiled by Bloomberg • Crack spread narrowest since Nov. 26 • January naphtha swaps down $12.50, or 1.4%, at $912.75/ton, according to PVM Oil Associates Ltd. • Gasoline reforming margin yesterday rebounded 26 cents to close at $13.86/bbl, data compiled by Bloomberg show

• Middle Distillates • Gasoil’s premium to Dubai crude down 22 cents at $20.30/bbl at 10:46 a.m. Singapore time, according to PVM • Crack spread narrowest so far this week • January gasoil swaps down $1.50, or 1.2%, at $125.05/bbl • Jet fuel regrade down 5 cents at 95 cents/bbl below gasoil

• Fuel Oil • High-sulfur fuel oil’s discount to Dubai crude narrows 22 cents to $7.94/bbl at 10:46 a.m. Singapore time, according to PVM • Crack spread gains for fourth day, longest rising streak since August • January HSFO swaps down $6.75, or 1.1%, at $614.75/ton • Viscosity spread unchanged for a second day at $11.50/ton

BASE METALS

Copper declined for the first time in six days, ending the longest winning streak in 15 months, on concern that China’s economic recovery may be slower than expected and as data may confirm a recession in Europe.

Metal for delivery in three months lost as much as 0.5 percent to $8,031 a metric ton on the London Metal Exchange and was at $8,032.75 at 1:57 p.m. in Shanghai. The contract touched $8,095.75 yesterday, the highest level since Oct. 19, and gained 4 percent in the five-day advance.

PRECIOUS METALS

Gold dropped for a third day to trade near a one-month low as a stronger dollar damped demand for commodities, overshadowing the highest ever holdings in exchange-traded products backed by bullion.

Spot gold slid as much as 0.4 percent to $1,687.15 an ounce, and was at $1,690.88 at 3:34 p.m. in Singapore. The metal fell to $1,684.93 yesterday, the least expensive since Nov. 6, as the dollar rallied on speculation that U.S. lawmakers will reach a budget agreement. Holdings in ETPs climbed to 2,627.59 metric tons yesterday, data compiled by Bloomberg show.

Gold for February delivery lost 0.2 percent to $1,691.20 an ounce on the Comex in New York. The most-active contract slipped to $1,686 yesterday, also the lowest level since Nov. 6.

GRAINS, OILSEEDS, SOFT COMMODITIES

Soybeans rallied for a fourth day to the highest level in almost a month on speculation that output in South America will be less-than-forecast by the U.S. Department of Agriculture after planting delays. Rice rose.

Soybeans for January delivery climbed as much as 0.8 percent to $14.91 a bushel on the Chicago Board of Trade, the highest price for a most-active contract since Nov. 9, and were at $14.86 at 3:37 p.m. in Singapore. A fourth day of gains would be the best run since July.

Corn for March delivery slipped 0.3 percent to $7.5575 a bushel in Chicago. Wheat for delivery in the same month declined 0.2 percent to at $8.5875 a bushel.

Rough rice for delivery in January increased 0.1 percent to $15.57 per 100 pounds, the highest price for the most-active contract since Aug. 30.

Rubber dropped from the highest level in more than seven weeks as decreasing crude oil prices outweighed optimism that demand from China, the world’s largest consumer, will increase.

Rubber for delivery in May fell 0.5 percent to end at 263.7 yen a kilogram ($3,199 a metric ton) on the Tokyo Commodity Exchange. The most-active contract earlier climbed to 266.2 yen, the highest price since Oct. 15.

Palm oil climbed to snap a seven-day losing streak on speculation that inventories in Malaysia, the biggest producer after Indonesia, will not expand to record levels as production declines.

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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