Jan. 4 (Bloomberg) -- Brazilian stocks fell for a second day, led by state-controlled oil company Petroleo Brasileiro SA, as a warmer-than-usual winter in the U.S. pushed crude prices lower.

The Bovespa index of the most-traded stocks on the Sao Paulo exchange fell 425.52, or 1 percent, to 44,019.77.

Crude oil fell 4.7 percent to $55.59 a barrel on the New York Mercantile Exchange, the lowest close since June 15, as mild U.S. weather curbed heating-fuel consumption. The U.K. government's weather forecasting division said the world is likely to experience its warmest recorded year in 2007 because of the effects of the El Nino weather pattern and global warming.

``Petrobras follows world oil prices,'' said Alexandre Pavan Povoa, who helps manage 450 million reais ($210 million) of stocks and bonds at Modal Asset Management in Rio de Janeiro. ``At some point, you would imagine they have to pass on these lower prices.''

Brazilian steelmakers and mining companies contributed to the market's decline as global commodity prices fell for a third day. The Commodity Research Bureau index of 19 commodities fell 1.5 percent today to 295.25, the lowest since May 2005.

Weaker-than-expected U.S. housing data propelled copper's slide to an eight-month low.

``When commodity stockpiles go up quickly, as was the case with copper because of U.S. housing numbers, it changes investors' positions,'' said Pedro Thomazoni, head of proprietary stock trading at Banco Votorantim in Sao Paulo.

In Mexico, shares fell for a second day after rising 4 percent last week. The Bolsa index fell 53.09, or 0.2 percent, to 26,566.28.

Shares fell on concern growth in the U.S., where Mexico sends about 80 percent of exports, is slowing more rapidly than expected, said Mauricio Brocado, director of equity research at Actinver SA in Mexico City.

``Factory orders and the service industries report were not very encouraging,'' Brocado said. The economic data could mean a longer wait for a cut in interest rates in the U.S., he said.

Argentine stocks fell for a second day as the drop in international oil prices hurt energy-related shares such as steelmaker Tenaris SA, and Petrobras Energia Participaciones SA, the Brazilian company's Argentine unit.

The Merval index of the most-traded stocks on the Buenos Aires exchange today fell 24.47 points, or 1.2 percent, to 2073.08. The index fell 1.9 percent yesterday.

Tenaris, the largest maker of seamless steel pipes for the oil and gas industry, makes up more than a quarter of the Merval index.

In other Latin American markets, the main stock indexes in Chile and Venezuela rose while those in Peru and Colombia fell. The Morgan Stanley Capital International Index of Latin American stocks fell 1.36, the most since November, to 2903.05.

The following are the most-active stocks in Latin American markets. In Brazil, the preferred share is usually a company's most-traded class of stock.

Argentina

Tenaris SA (TS AF) fell 2.20 pesos, or 3 percent, to 71.30 pesos.

Petrobras Energia Participaciones SA (PBE AF), the country's second largest energy company, fell 7 centavos, or 1.9 percent, to 3.58 pesos.

Brazil

Cia. Paranaense de Energia (CPLE6 BS) rose 52 centavos, or 2.1 percent, to 25.80 reais. Copel, as Brazil's second-biggest combined power distributor and generator is known, agreed to lease its Araucaria generating plant to Petroleo Brasileiro, the state- controlled oil company. The lease runs through the end of 2007, Copel said on its Web site.

Gerdau SA (GGBR4 BS) fell 99 centavos, or 2.8 percent, to 34.61 reais. Steel companies fell a second day on concerns that increased Asian production may cut profitability in European and U.S. markets. ``The excess production in Asia will tend to go to Europe,'' affecting prices, said Rogerio Poppe, who helps managed 4.5 billion reais in assets for Mellon Global Investments in Rio de Janeiro.

Arcelor Brasil SA (ARCE3 BS), the Brazilian unit of the Mittal Steel Co., the world's largest steelmaker, fell 1.19 reais, or 2.9 percent, to 40.51 reais. Cia. Siderurgica Nacional SA (CSNA3 BS), the third-largest Brazilian steelmaker, fell 1.47 reais, or 2.3 percent, to 62.30 reais. Usinas Siderurgicas de Minas Gerais SA (USIM5 BS), Brazil's second-largest steelmaker, fell 95 centavos, or 1.2 percent, to 77.05 reais.

Petrobras (PETR4 BS) fell 1.05 centavos, or 2.2 percent, to 47.65 reais. Home heating demand in northeastern U.S. will be 43 percent below normal through Jan. 10, forecaster Weather Derivatives said yesterday.

Mexico

Embotelladoras Arca SA (ARCA* MM), Mexico's second-largest Coca-Cola bottler, fell 1.01 pesos, or 2.4 percent, to 41.80 pesos. Analysts Reinaldo Santana, Juliana Rozenbaum and Marcella Martuscelli at Deutsche Bank downgraded the stock to ``hold'' after the share price rose 37 percent over the past three months.

Fomento Economico Mexicano SAB (FEMSAUBD MM), Mexico's second- largest beer company, fell 92 centavos, or 0.7 percent, to 125.94 pesos. The company, known as Femsa, said Jan. 2 it will raise beer prices by about the expected rate of inflation, forecast by the central bank at 3.5 percent.

Gruma SA (GRUMAB MM), the world's largest corn-flour producer, fell 1.61 pesos, or 4.3 percent, to 35.68 pesos, the lowest since October. Brocado said the shares fell on high prices for corn, which surged 81 percent last year. Corn futures on the Chicago Board of Trade fell from a four-week high yesterday, and declined 2.2 percent today.

Grupo Mexico SAB (GMEXICOB MM), Mexico's largest copper producer, fell 69 centavos, or 1.8 percent, to 37.43 pesos. Copper futures for March delivery fell 4.7 cents, or 1.8 percent, in New York after falling 7.7 percent yesterday.

Wal-Mart de Mexico SA (WALMEXV MM), Latin America's largest retailer, fell 97 centavos, or 2.1 percent, to 46.19 pesos. The shares rose more than 10 percent from Dec. 20 through the end of 2006. Some investors think the gains were overdone, trader Hector Chavez Rios of Santander in Mexico City said in an interview yesterday.

To contact the reporters on this story: Paulo Winterstein in Sao Paulo at at pwinterstein@bloomberg.net; William Freebairn in Mexico City wfreebairn@bloomberg.net.

Last Updated: January 4, 2007 17:14 EST