Commodities Rise to Two-Week High on `Positive' Global Economic Reports
Commodities jumped to a two-week high as higher-than-estimated job growth in the U.S. private sector and expanding Chinese and European manufacturing bolstered optimism in the global economy.
The Reuters/Jefferies CRB Index of 19 raw materials jumped 1.7 percent to 306.63 at 11:45 a.m. New York time, the highest level since Nov. 12. Grains and industrial prices led the rally. Wheat soared as much as 7.9 percent, and cotton rose more than 3 percent.
“The positive economic reports around the world are supporting the market pretty strongly,” said Adam Klopfenstein, a senior strategist at Lind-Waldock, a commodity broker in Chicago.
U.S. companies added 93,000 jobs in November, ADP Employer Services said. That topped the 70,000 median estimate of 40 economists surveyed by Bloomberg News. China’s manufacturing expanded at the fastest pace in seven months, while Europe’s grew the most in four months.
Before today, the CRB index rose 18 percent since July 1 as the U.S. moved to bolster the economy.
Wheat futures in Chicago headed for the biggest gain in seven weeks as excessive rainfall threatened to reduce grain quality and delay the harvest in Australia, the world’s third- largest exporter.
Cotton climbed to a two-week high as India, the world’s second-largest grower, announced yarn-export limits.
Corn rose as much as 4.3 percent on speculation that China will increase imports of agricultural goods to damp inflation.
Among CRB components, only cocoa posted a decline.
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