Bloomberg News

Cotton Rises to 12-Week High on China Use: Commodities at Close

January 16, 2013

The Standard & Poor’s GSCI Spot Index of 24 raw materials rose 0.2 percent to settle at 653.31 at 3:52 p.m. New York time, led by agriculture.

The UBS Bloomberg CMCI gauge of 26 prices climbed less than 0.1 percent to 1,579.25.

SOFT COMMODITIES

Cotton futures jumped to the highest in 12 weeks on signs that demand is increasing in China, the world’s biggest consumer and importer.

To satisfy domestic mill demand, the government began selling from state reserves this week, the China National Cotton Exchange said yesterday. Imports rose 75 percent in December from a month earlier, another report showed. The U.S. Department of Agriculture on Jan. 11 boosted its forecast of Chinese imports this year by 8.7 percent to 12.5 million bales.

On ICE Futures U.S. in New York, cotton for March delivery rose 1.5 percent to 77.33 cents a pound. Earlier, the price reached 77.78 cents, the highest for a most-active contract since Oct. 19.

Orange-juice futures for March delivery surged 1.8 percent to $1.123 a pound, the biggest gain since Dec. 13.

Arabica-coffee futures for March delivery climbed 0.3 percent to $1.53 a pound.

Cocoa futures for March delivery slid 0.6 percent to $2,256 a metric ton.

Raw sugar for March delivery fell 0.9 percent to 18.45 cents a pound.

GRAINS, OILSEEDS

Soybeans rose to a three-week high and corn extended the longest rally in a year on speculation that warmer, drier weather may hurt crops in South America, increasing demand for U.S. supplies.

On the Chicago Board of Trade, soybean futures for March delivery advanced 1.6 percent to $14.365 a bushel. Earlier, the price reached $14.39, the highest since Dec. 26.

Corn futures for March delivery rose 0.1 percent to $7.3125 a bushel. The price climbed for the eighth straight sessions, the longest rally since December 2011.

Wheat futures for March delivery gained 0.3 percent to $7.85 a bushel. The grain increased for the fourth straight session, the longest rally since late November.

CRUDE OIL

Crude oil rose to the highest in almost four months on an unexpected drop in U.S. inventories as imports declined and petroleum consumption increased.

On the New York Mercantile Exchange, oil futures for February delivery climbed 1 percent to $94.24 a barrel, the highest settlement since Sept. 18.

Brent oil for February settlement gained 0.3 percent to $110.61 a barrel on the London-based ICE Futures exchange.

Phibro failed to sell North Sea Forties crude, its first offer in four months. Total SA bid unsuccessfully for the grade at a higher differential than yesterday’s trade.

Abu Dhabi National Energy Company PJSC, known as Taqa, said it is working to restore most of the oil production flowing through the Brent pipeline system that was halted after a platform leak two days ago.

BASE METALS

Copper fell to a two-week low as investment shrank in 2012 in China, the world’s biggest metals consumer, and the World Bank lowered its forecast for global economic growth.

On the Comex in New York, copper futures for March delivery slid 0.9 percent to $3.6065 a pound after touching $3.5995, the lowest since Dec. 31.

On the London Metal Exchange, copper for delivery in three months declined 0.6 percent to $7,946 a ton ($3.60 a pound). Lead, zinc, nickel and aluminum also dropped, while tin rose.

PRECIOUS METALS

Gold futures fell from a one-week high amid concern that demand is easing while global economic growth slows.

On the Comex, gold futures for February delivery slid 70 cents to $1,683.20 an ounce. Yesterday, the price reached $1,684.90, the highest since Jan. 3.

Silver futures for March delivery rose less than 0.1 percent to $31.542 an ounce.

On the Nymex, platinum futures for April delivery gained 0.2 percent to $1,694.10 an ounce, the highest settlement since Oct. 9.

Palladium futures for March delivery added 1.8 percent to $726.45 an ounce. Earlier, the price reached $727.90, the highest since Sept. 19, 2011.

OIL PRODUCTS

Heating oil declined as gasoil weakened in Europe, indicating less demand for distillate exports from the U.S. at a time when inventories are rising.

On the Nymex, heating-oil futures for February delivery dropped 0.4 percent to $2.9991 a gallon.

Gasoline futures for February delivery rose 0.5 percent to $2.7214 a gallon.

NATURAL GAS

Natural gas slipped for the first time in five sessions before a government report tomorrow that may show a below- average inventory decline.

On the Nymex, gas futures for February delivery fell 0.6 percent to $3.435 per million British thermal units.

U.K. gas for February advanced for the first time in three days amid freezing weather and a forecast for further declines in temperatures.

The price climbed 1.4 percent to 67.70 pence a therm as of 4:30 p.m. London time. That’s equivalent to $10.83 per million Btu.

LIVESTOCK

Cattle prices fell the most since November on signs of slack demand for beef.

On the Chicago Mercantile Exchange, cattle futures for April delivery retreated 1.3 percent to $1.327 a pound, the biggest slide since Nov. 30.

Feeder-cattle futures for March settlement slid 1.4 percent to close at $1.48225 a pound. The price has dropped for eight straight sessions, the longest slump since September 2009.

Hog futures for April settlement declined 0.2 percent to 87.425 cents a pound.

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

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net


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