Bloomberg News

Gold Rises to One-Month High; Copper Gains: Commodities at Close

January 18, 2013

The Standard & Poor’s GSCI gauge of 24 commodities rose 0.1 percent to 654.16 at 5:08 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials increased 0.02 percent to 1,579.270.

CRUDE OIL

Oil traded near the highest price in four months in New York and headed for the longest weekly winning streak in 14 months after economic growth accelerated in China, the world’s second-biggest crude consumer.

Crude for February delivery was at $95.47 a barrel, down 2 cents, in electronic trading on the New York Mercantile Exchange at 4:34 p.m. Singapore time. The contract advanced 1.3 percent to $95.49 yesterday. That’s the biggest gain since Jan. 2 and the highest close since Sept. 17. Prices are up 2 percent this week for a sixth straight advance, the longest winning streak since November 2011.

Brent for March settlement rose 3 cents to $111.13 a barrel on the London-based ICE Futures Europe exchange. The European benchmark contract was at a premium of $15.66 to West Texas Intermediate futures for the same month. The gap was $15.16 yesterday, the narrowest since July 24.

OIL PRODUCTS

Asia fuel oil’s discount to crude is poised for the biggest weekly increase in three months, signaling widening losses for refiners making residual products. Gasoil and naphtha swaps increase.

• Fuel Oil • Fuel oil’s discount to Dubai crude widens $1.62 to $7.43/bbl at 11 a.m. Singapore time, according to PVM Oil Associates • Crack spread has widened 34 percent since last week • February swaps down $4, or 0.6%, at $632.25/ton, at 75 cent discount to March contract • Viscosity spread unchanged for fourth day at $7.25/ton, set for second weekly loss

• Middle Distillates • Gasoil’s premium to Dubai crude down 49 cents at $19.30/bbl at 11 a.m. Singapore time, according to PVM • Crack spread narrows most so far this year, set for third weekly loss in four weeks • February gasoil swaps up 50 cents, or 0.4%, at $126.30/bbl • Jet fuel regrade at premium of 50 cents/bbl, heads for second weekly gain

• Light Distillates • Naphtha’s premium to London Brent crude up $9.53 at $99/ton at 11.45 a.m. Singapore time, according to data compiled by Bloomberg • Crack spread set for second weekly gain • February naphtha swaps up $9, or 1%, at $935.50/ton, PVM said • Gasoline reforming margin yesterday rose 45 cents to close at $15.97/bbl, data compiled by Bloomberg show

BASE METALS

Copper gained, set for a weekly advance as better-than- expected data from China, the largest user, indicated demand will improve.

Metal for delivery in three months rose 0.2 percent to $8,070 a metric ton on the London Metal Exchange at 1:21 p.m. Shanghai time, adding 0.3 percent this week. Copper for delivery in April gained 0.8 percent to 58,180 yuan ($9,353) a ton on the Shanghai Futures Exchange.

PRECIOUS METALS

Gold advanced toward a one-month high on speculation that the central banks around the world will sustain stimulus even as economic growth in China accelerated for the first time in two years.

Gold for immediate delivery rose 0.3 percent to $1,692.15 an ounce at 4:05 p.m. in Singapore after climbing to $1,696.28 yesterday, the highest since Dec. 18. Prices are poised to gain 1.8 percent this week. Bullion for February was little changed at $1,691.80 an ounce on the Comex in New York.

Gold futures advanced 2.4 percent to a record 4,911 yen a gram ($1,696 an ounce) on the Tokyo Commodity Exchange. Bullion of 99.99 percent purity rose as much as 0.7 percent to 339.65 yuan a gram ($1,699 an ounce) on the Shanghai Gold Exchange.

Cash silver gained as much as 0.6 percent to $31.9287 an ounce, the highest level since Dec. 18, and was set to climb 4.7 percent this week for the biggest gain since Nov. 23. Sales of 2013 American Eagle silver coins are suspended after temporarily selling out, the U.S. Mint said yesterday.

Spot platinum rose 0.4 percent to $1,699.24 an ounce, up 4.1 percent this week. Holdings in exchange-traded products backed by platinum climbed to a record 52.9816 metric tons yesterday, data tracked by Bloomberg showed.

GRAINS, OILSEEDS, SOFT COMMODITIES

Wheat was headed for the biggest weekly gain since July as a drought persisted in the U.S., threatening this year’s harvest in the world’s largest shipper.

The contract for delivery in March was little changed at $7.8175 a bushel on the Chicago Board of Trade by 10:48 a.m. Singapore time, after climbing as much as 0.7 percent. Futures are set for a 3.6 percent gain this week, the most since the five days ended July 20.

Soybeans for delivery in March traded little changed $14.3225 a bushel, on course for a 4.3 percent increase this week, the biggest gain for the most-active contract the five days ended since Aug. 24. Corn for March delivery was little changed at $7.2425 a bushel, set for a 2.2 percent advance this week.

Palm oil gained on speculation that Malaysia may increase exports of refined oils to India after the world’s biggest buyer said it will tax unprocessed cooking oils for the first time since 2008.

The contract for delivery in April advanced as much as 1.4 percent to 2,412 ringgit ($801) a metric ton on the Malaysia Derivatives Exchange and ended the morning session at 2,405 ringgit in Kuala Lumpur. Futures are set to gain 1.4 percent this week, the first such advance in three weeks.

Rubber rose for a seventh week, the longest winning streak since November 2007, after data from China, the world’s top consumer, beat estimates and the yen traded near a 30-month low, boosting demand.

Rubber for delivery in June surged 3.6 percent, the biggest gain at close since Oct. 25, to end at 316.3 yen a kilogram ($3,503 a metric ton) on the Tokyo Commodity Exchange. The price climbed 1.3 percent this week.

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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