Bloomberg News

Tin Falls; Copper Gains; Gold Declines: Commodities at Close

March 26, 2013

The Standard & Poor’s GSCI gauge of 24 commodities fell 0.1 percent to 649.58 at 4:31 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials climbed 0.1 percent to 1,542.650.

CRUDE OIL

West Texas Intermediate oil traded near the highest level in five weeks. U.S. crude inventories probably rose as domestic output stayed near the strongest in two decades, a Bloomberg News survey showed.

WTI for May delivery was at $94.98 a barrel, up 17 cents, in electronic trading on the New York Mercantile Exchange at 4:09 p.m. in Singapore. The volume of all futures traded was 41 percent below the 100-day average for the time of day. The contract rose $1.10 to $94.81 yesterday, the highest close since Feb. 19. Prices have advanced 3.5 percent this year.

Brent oil for May settlement was down 40 cent at $107.77 a barrel on the London-based ICE Futures Europe exchange. The volume of all futures traded was 61 percent below the 100-day average. Prices are down 2.9 percent in 2013. The European benchmark crude’s premium to WTI was at $12.85. It closed at $13.36 yesterday, the least since July.

OIL PRODUCTS

Asia’s April gasoil swap traded at a discount to May for a fourth day. Market is in longest period of contango, or when prompt contracts trade below later-dated supplies, since November.

• Fuel Oil • Fuel oil’s discount to Dubai crude narrows 3 cents to $6/bbl at 11:15 a.m. Singapore time, according to data compiled by Bloomberg • April 180-cst fuel oil swaps down 47 cents at $628.26/mt • April fuel oil swap trades 45 cents/mt above May contract • Viscosity spread narrows 8 cents to $5.75/mt. The gap is the narrowest since Feb. 28 • April East- West fuel oil spread at $28.52/mt, narrowest gap since Feb. 27

• Light Distillates • Singapore naphtha’s discount to London Brent crude increases 2 cents to $9.59/bbl • April Japan naphtha swaps down 50 cents at $897.03/mt • April East-West naphtha spread widens 35 cents to $11.96/mt

• Middle Distillates • Gasoil’s premium to Dubai crude rises 43 cents to $16.33/bbl • April gasoil swaps up 33 cents at $121.28/bbl • April gasoil swap trades 16 cents/bbl below May contract. Market now in contango for a fourth day • April East- West gasoil spread at minus $1/mt. Asia prices are below European prices for a second day • Jet fuel regrade at minus 50 cents/bbl • April kerosene swap trades 26 cents/bbl below May contract

BASE METALS

Tin fell the most in a week as inventories in London Metal Exchange warehouses are close to the highest level in almost 10 months. Copper gained as a strike at a main export terminal in Chile continued.

Tin for delivery in three months lost as much as 1.4 percent, the most since March 19, to $22,866 a metric ton on the London Metal Exchange and was at $22,999 at 2:35 p.m. Shanghai time. Copper rose as much as 0.5 percent to $7,655 a ton.

PRECIOUS METALS

Gold fell for a third day, poised for the worst run in three weeks, as Cyprus’s bailout damped haven demand even amid concern that its bank-restructuring plan may be used as a template for other European nations.

Gold for immediate delivery lost as much as 0.3 percent to $1,600.14 an ounce and was at $1,602.53 at 3 p.m. in Singapore. Prices touched $1,589.87 yesterday, the lowest since March 15, as the rescue ensured Cyprus averted default. The last time gold fell for at least three days was the period to March 4. amid signs that the U.S. recovery is gaining traction.

Gold for June delivery lost 0.2 percent to $1,603.30 an ounce on the Comex in New York. Platinum dropped 0.6 percent to $1,576.50 an ounce even as holdings in ETPs gained to an all- time high of 52.144 tons.

Spot silver dropped 0.2 percent to $28.78 an ounce, while palladium was little changed at $757.85 an ounce.

GRAINS, OILSEEDS, SOFT COMMODITIES

Corn dropped, as the CME Group raised the initial margins for futures contracts for the new crop, adding to disincentives for investors already concerned that supplies may rise as farmers in the U.S. boost planting.

The grain for delivery in May lost as much as 0.4 percent to $7.3025 a bushel on the Chicago Board of Trade and was at $7.3125 at 2:11 p.m. Singapore time. Trading volume was 44 percent lower than the 100-day average for that time of day.

The margin for speculative traders will rise to $2,700 at the end of business today from $2,025, the CME said in a statement. For hedgers and members the margin would be $2,000, up from $1,500, it said.

Soybeans for May delivery fell 0.2 percent to $14.35 a bushel, while wheat futures were little changed at $7.2675.

Rubber fell as Japan’s currency gained, cutting the appeal of yen-denominated contracts, amid concern Cyprus’s bank- restructuring plan will be a template for other European nations, imperiling bondholders and depositors.

The contract for delivery in August lost 1.2 percent to end at 276.1 yen a kilogram ($2,930 a metric ton) on the Tokyo Commodity Exchange, extending this year’s retreat to 8.7 percent.

Palm oil fell for a second day on speculation that stockpiles in Malaysia, the world’s second-biggest producer after Indonesia, may climb as exports decline.

The contract for delivery in June dropped as much as 1.1 percent to 2,436 ringgit ($787) a metric ton on the Malaysia Derivatives Exchange, and ended the morning session at 2,438 ringgit in Kuala Lumpur. Futures gained 3.3 percent last week, closing at 2,493 ringgit, the highest price since Feb. 22.

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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