Bloomberg News

Gold Declines; Rubber Falls; Copper Slides: Commodities at Close

April 05, 2013

The Standard & Poor’s GSCI gauge of 24 commodities rose 0.1 percent to 633.63 at 4:46 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials dropped 0.1 percent to 1,506.123.

CRUDE OIL

Crude in New York traded near a two-week low and headed for its biggest weekly drop since September after U.S. inventories climbed to a 22-year high, raising concern slower economic growth may be weakening fuel demand.

WTI for May delivery was at $93.09 a barrel in electronic trading on the New York Mercantile Exchange, down 17 cents, at 2:07 p.m. Singapore time. It fell 1.3 percent to $93.26 yesterday, the lowest settlement since March 21. The volume of contracts traded was 42 percent below the 100-day average.

Brent for May settlement on the London-based ICE Futures Europe exchange was at $106.38 a barrel, up 4 cents. It declined 0.7 percent to $106.34 yesterday, the lowest close since Nov. 2. The futures have fallen 11 percent from this year’s peak of $118.90 on Feb. 8. The volume was 44 percent lower than the 100- day average.

The European benchmark grade was at a $13.29 premium to WTI, from $13.08 yesterday. The spread shrank to $12.66 on April 3, the narrowest since July.

OIL PRODUCTS

East-West naphtha spread widens to the most in four weeks, signaling rising profit from shipping the light distillate product to Asia. Gasoil’s premium to Dubai crude rises this week.

• Light Distillates • Singapore naphtha’s discount to London Brent crude at $10.23/bbl as of 10:50 a.m. Singapore time, according to data compiled by Bloomberg. The crack sets to widen this week, a fourth time in five • May Japan naphtha swaps at $860.94/mt, down $36.34 this week • May East-West naphtha spread at $17.09/mt, highest in four weeks. The spread widens for a third week

• Middle Distillates • Gasoil’s premium to Dubai crude at $17.61/bbl. The crack is set for the first weekly increase in six • May gasoil swaps at $120.73/bbl, down $1.68 this week • May gasoil swap trades at 7 cents/bbl below June contract. The contango narrows first time in three weeks • May East-West gasoil spread at minus $1/mt • Jet fuel regrade at 5 cents premium to gasoil, reverting from a discount last week • May kerosene swap trades 11 cents/bbl below June contract

• Fuel Oil • Fuel oil’s discount to Dubai crude at $5.73/bbl. The crack is poised to narrow this week for the first time in three • May 180-cst fuel oil swaps at $618.70/mt, down $19.93 this week • May fuel oil swap trades at 5 cents/mt below June contract, in contango for a third day • Viscosity spread at $5.25/mt, poised for a third weekly decline • May East-West fuel oil spread at $29.15/mt

BASE METALS

Copper traded near an eight-month low, poised for a third weekly drop, on concern that growth is slowing in China, the biggest user, and as global inventories continued to climb.

Metal for delivery in three months fell 0.2 percent to $7,424 a metric ton on the London Metal Exchange at 2:55 p.m. in Seoul. Prices are down 1.5 percent this week and yesterday touched the lowest since Aug. 3. Futures for May delivery were down 0.2 percent at $3.344 a pound on the Comex in New York. Markets in China are closed today for a national holiday.

PRECIOUS METALS

Gold fell for a fourth day, nearing its first bear market since 2008, as investors reduced asset holdings amid optimism a global economic recovery will curb haven demand. Silver traded near an eight-month low.

Gold for immediate delivery declined as much as 0.3 percent to $1,549.62 an ounce and was at $1,551.08 at 2:10 p.m. in Singapore. Prices touched $1,540.29 yesterday, the lowest since May 30, and are set for a second weekly drop. Bullion tumbled 18.4 percent from a record close of $1,900.23 in September 2011, nearing the 20 percent that typically defines a bear market.

Spot silver fell as much as 0.6 percent to $26.7925 an ounce, set for a fourth weekly slump, and was at $26.8188. Prices touched 26.6488 yesterday, the cheapest since July 24.

Platinum was little changed at $1,522.50 an ounce, poised for a fourth weekly decline. Palladium gained 0.3 percent to $729.05 an ounce, set for a weekly drop.

GRAINS, OILSEEDS, SOFT COMMODITIES

Soybeans traded near the lowest level since January as the death toll from a new strain of bird flu in China rose, boosting concern poultry-meat consumption and feed use in the largest buyer of the oilseed may slow.

The May contract dropped as much as 0.8 percent to $13.615 a bushel on the Chicago Board of Trade, after falling to $13.61 yesterday, the cheapest for the most-active contract since Jan. 11. Futures traded at $13.655 at 3:45 p.m. Singapore time, headed for a 2.8 percent loss this week.

The May contract for corn, which can be used in poultry feed also, was little changed at $6.305 a bushel, set for a 9.3 percent loss this week, the deepest decline for the most-active contract since the five days ended June 15. Wheat for May delivery was unchanged at $6.94 a bushel.

Rubber declined for a fourth week as Europe’s lingering debt crisis and a high level of stockpiles in China raised concern that demand will remain weak.

The contract for delivery in September lost 2 percent to close at 253.5 yen a kilogram ($2,635 a metric ton) on the Tokyo Commodity Exchange. Futures declined 7.5 percent this week, a fourth weekly decline. Financial markets in China are closed for a national holiday.

Palm oil fell, set for a second weekly drop, as the Malaysian currency gained against the dollar, reducing the appeal of ringgit-denominated futures.

The contract for delivery in June dropped as much as 1.7 percent to 2,351 ringgit ($768) a metric ton on the Malaysia Derivatives Exchange, before trading at 2,362 ringgit at the midday break in Kuala Lumpur. Futures are heading for a 0.7 percent loss this week after a 4.6 percent decline in the previous five sessions.

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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