Bloomberg News

Palm Oil Climbs; Wheat Gains; Metals Rise: Commodities at Close

January 22, 2013

The Standard & Poor’s GSCI gauge of 24 commodities rose 0.2 percent to 661.97 at 5:26 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials increased 0.2 percent on the same day to 1,594.507.

CRUDE OIL

Oil traded near a four-month high in New York as Japan’s central bank said it will expand asset purchases to lift the world’s third-biggest crude consumer out of its third recession in five years. Brent prices advanced.

WTI for February delivery, which expires today, was at $95.60 a barrel, up 4 cents, in electronic trading on the New York Mercantile Exchange at 3:21 p.m. Singapore time. The more active March contract was unchanged at $96.04. Yesterday’s transactions will be booked with today’s trades for settlement purposes. Front-month futures rose 7 cents to $95.56 on Jan. 18, the highest close since Sept. 17.

OIL PRODUCTS

Asia’s jet fuel regrade rose to the highest in almost two months, signaling increased profit for refiners making aviation fuel over diesel. The fuel oil crack widened.

• Middle Distillates • Gasoil’s premium to Dubai crude up 17 cents at $20.21/bbl at 10:25 a.m. Singapore time, according to PVM Oil Associates Ltd. • February gasoil swaps up 45 cents at $127.60/bbl • Jet fuel regrade up 25 cents to 70 cents/bbl, highest since Nov. 28

• Fuel Oil • Fuel oil’s discount to Dubai crude widens 36 cents to $6.25/bbl, according to PVM • February swaps down 50 cents at $642.25/ton, a $1.50 discount to March contract • Viscosity spread down 25 cents at $7/ton

• Light Distillates • Naphtha’s premium to London Brent crude up 84 cents to $104.47/ton at 11:22 a.m. Singapore time, according to data compiled by Bloomberg • February naphtha swaps up $2.50, or 0.3%, at $947.75/ton, PVM says • Gasoline reforming margin rose 15 cents to close at $15.31/bbl yesterday, data compiled by Bloomberg show

BASE METALS

Copper climbed with other industrial metals in London as the dollar fell after the Bank of Japan announced open-ended asset purchases and adopted a 2 percent inflation target.

Copper for delivery in three months climbed as much as 0.8 percent to $8,120 a metric ton on the London Metal Exchange before trading at $8,107 at 2:26 p.m. Shanghai time. Futures for delivery in April on the Shanghai Futures Exchange added 0.8 percent to 58,640 yuan ($9,428) a ton.

PRECIOUS METALS

Gold extended its advance toward a one-month high after the Bank of Japan set a 2 percent inflation target and shifted to Federal Reserve-style open-ended asset purchases in an attempt to end two decades of deflation.

Spot gold increased as much as 0.3 percent to $1,694.88 an ounce and traded at $1,694.34 at 3:18 p.m. in Singapore. Bullion reached a one-month high of $1,696.29 on Jan. 17 on concern global growth may slow. Gold for February delivery gained 0.4 percent to $1,693.70 on the Comex in New York.

GRAINS, OILSEEDS, SOFT COMMODITIES

Wheat advanced to the highest level in more than a month as winter-kill hit grains in Russia, last year’s third-largest shipper, deepening concerns about global supply amid a persistent U.S. drought.

The grain for March delivery gained as much as 1.1 percent to $7.9975 a bushel on the Chicago Board of Trade, the highest price for the most-active contract since Dec. 20. Futures traded at $7.99 a bushel by 2:23 p.m. Singapore time.

Corn for March delivery gained as much as 0.9 percent to $7.34 a bushel and last traded at $7.3375 a bushel. Soybeans for March delivery climbed as much as 1.3 percent to $14.4725 a bushel. Futures last traded at $14.4225 a bushel.

Rubber dropped for a second day as the Japanese currency strengthened after the Bank of Japan (8301) announced open-ended asset purchases and adopted a 2 percent inflation target.

Rubber for delivery in June lost 0.1 percent to end at 311.3 yen a kilogram ($3,497 a metric ton) on the Tokyo Commodity Exchange. Futures have advanced 2.9 percent this year.

Palm oil rallied for a third day, advancing to the highest level in two weeks, on expectations that zero-rate export taxes will reduce record stockpiles in Malaysia, the world’s second- biggest producer.

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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