Bloomberg News

Crude Falls; Silver, Gold Drop; Rice Gains: Commodities at Close

April 03, 2013

The Standard & Poor’s GSCI gauge of 24 commodities fell 0.3 percent to 650.05 at 4:51 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials dropped 0.3 percent to 1,521.723.

CRUDE OIL

West Texas Intermediate fell for the second time in three days after an industry report showed U.S. crude stockpiles increased the most in four weeks and a government order prevented the restart of a pipeline to the Texas Gulf Coast.

WTI for May delivery declined as much as 68 cents to $96.51 a barrel in electronic trading on the New York Mercantile Exchange and was at $96.62 at 3:18 p.m. Singapore time. The volume of all futures traded was 1.7 percent below the 100-day average. The contract settled at $97.19 yesterday, the highest since March 28. Futures have traded between $90 and $98 since the start of 2013.

Brent for May settlement was down for a second day on the London-based ICE Futures Europe exchange, dropping 48 cents to $110.21 a barrel. The contract decreased 0.4 percent to $110.69 yesterday. Trading volume was 54 percent above the 100-day average. The European benchmark grade was at a premium of $13.64 to WTI futures, up from $13.50 yesterday.

OIL PRODUCTS

Asia fuel oil’s discount to crude is at the widest in more than a month, indicating bigger losses from producing the residual fuel. Gasoil’s premium to crude, or crack, is narrowing.

• Middle Distillates • Gasoil’s premium to Dubai crude narrows 73 cents to $16.11/bbl as of 1:30 p.m. Singapore time, according to data compiled by Bloomberg • May gasoil swaps down 10 cents at $124.02/bbl • May gasoil swap trades 27 cents/bbl below June contract. Contango narrows for a third day • May East-West gasoil spread at minus $8.25/mt • Jet fuel regrade at 15 cents/bbl premium to gasoil • May kerosene swap trades 27 cents/bbl below June contract

• Light Distillates • Singapore naphtha’s discount to London Brent crude narrows 10 cents to $11.22/bbl • May Japan naphtha swaps down $2.22 to $892.06/mt • May East-West naphtha spread widens 16 cents to $14.05/mt

• Fuel Oil • Fuel oil’s discount to Dubai crude widens 88 cents to $7.40/bbl, the widest since Feb. 27 • May 180-cst fuel oil swaps down $1.32 at $638.50/mt • May fuel oil swap trades 15 cents/mt above June contract • Viscosity spread widens 4 cents at $6.51/mt • May East-West fuel oil spread narrows 7 cents to $29.44/mt

BASE METALS

Copper in London fell for a fourth day, slipping to the lowest price since August, as inventories expand. Lead slumped to a five-month low.

The three-month copper contract fell as much as 0.8 percent to $7,404.50 a ton, the lowest since Aug. 20, on the London Metal Exchange and traded at $7,425 a ton at 4:38 p.m. in Seoul. Copper for May delivery fell 0.8 percent to $3.3510 a pound on the Comex in New York, while the July-delivery contract lost 0.8 percent to close at 54,060 yuan ($8,716) a ton in Shanghai.

On the LME, lead fell as much as 0.8 percent to $2,034 a ton, the lowest level since Oct. 30. Tin and nickel lost 1 percent, while zinc was little changed. Markets in China will be closed April 4-5 for a holiday.

PRECIOUS METALS

Silver tumbled past the $27 an ounce level for the first time in more than eight months, exceeding losses in gold, platinum and palladium today, as investors sought higher returns in stock markets.

Spot silver lost as much as 1.3 percent to $26.92 an ounce, the cheapest since July 25, and traded at $26.025 by 3:33 p.m. in Singapore. Gold lost as much as 0.8 percent at $1,563.68 an ounce, the lowest level since March 8. Futures for June delivery fell 0.6 percent to $1,566.20 an ounce on the Comex.

Cash platinum lost as much as 0.8 percent to $1,559.50 a ton, the lowest since March 20, before trading at $1,562.38. That pared this year’s gains to 1.5 percent. Spot palladium dropped 0.4 percent at $763.30 an ounce, trimming the annual increase to 8.4 percent.

GRAINS, OILSEEDS, SOFT COMMODITIES

Rice advanced to the highest level in more than a month in Chicago, extending the biggest jump since June, as farmers in the U.S. plan to cut acreage to the smallest in more than two decades.

Rough rice for delivery in May climbed as much as 1.1 percent to $15.945 per 100 pounds on the Chicago Board of Trade, the highest for the most-active contract since March 1. Futures were at $15.925 at 2:57 p.m. in Singapore on volume that was almost four times above the average for that time of the day. The price rallied 3.3 percent yesterday, gaining 50 cents, the most allowed.

Wheat for delivery in May gained as much as 1 percent to $6.7725 a bushel in Chicago, extending yesterday’s 1 percent gain. The grain, which fell to $6.5975 on April 1, the cheapest for a most-active contract since June 20, was at $6.7625.

Corn for May delivery dropped 0.5 percent to $6.375 a bushel. The grain, which entered a bear market this week on prospects for increased supply, dropped to $6.34 yesterday, the lowest level in nine months.

Soybeans for May delivery dropped as much as 0.9 percent to $13.82 a bushel, the cheapest for the most-active contract since Jan. 14. The oilseed, which traded at $13.8425, fell for the second straight quarter in the three months to March.

Rubber rose from the lowest level in four months on better- than-expected factory orders in the U.S. and optimism for purchases from China, the biggest user.

The contract for delivery in September rose 0.2 percent to settle at 261.7 yen a kilogram ($2,800 a metric ton) on the Tokyo Commodity Exchange. Futures closed at 261.1 yen yesterday, the lowest in four months, after passing the threshold into a bear market on April 1.

June-delivery palm oil contract climbs 0.5 percnet to trade at 2,392 ringgit/ton on the Malaysia Derivatives Exchange at 4:37 p.m. in Kuala Lumpur. Futures earlier fell as much as 1.3%

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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