Natural Gas Drops Most in Eight Months: Commodities at Close
The Standard & Poor’s GSCI Spot Index (SPGSCI) of 24 commodities fell 0.7 percent to close at 663.49 at 3:44 p.m. in New York, led by natural gas.
The UBS Bloomberg CMCI index of 26 raw materials fell 0.3 percent to 1561.795.
NATURAL GAS
Natural gas futures posted their biggest one-day decline in eight months as revised forecasts showed milder weather across much of the U.S. through late January, crimping demand for the furnace fuel.
Natural gas for February delivery fell 16.7 cents to $2.774 per million British thermal units on the New York Mercantile Exchange, the lowest settlement price since Sept. 4, 2009.
U.K. natural gas for next month advanced as cooler weather was forecast to boost heating demand.
Gas for next month gained as much as 1.3 pence to 55.7 pence a therm. It was at 55.4 pence at 4:30 p.m. in London, according to broker data compiled by Bloomberg. That’s equal to $8.52 a million British thermal units.
BASE METALS
Copper futures rose to a four-week high on speculation that China may loosen monetary policy to stimulate its economy, boosting prospects for metal demand.
Copper futures for March delivery rose 0.9 percent to settle at $3.546 a pound at 1:17 p.m. on the Comex in New York. Earlier, the price reached $3.5565, the highest for a most- active contract since Dec. 12.
On the London Metal Exchange, copper for delivery in three months gained 0.5 percent to $7,780 a metric ton ($3.53 a pound). Zinc, tin and lead also rose, while nickel fell.
SOFT COMMODITIES
Coffee futures rose the most in six weeks on speculation that record output forecast in Brazil, the world’s top grower, isn’t keeping pace with gains in domestic demand and exports. Cocoa and sugar gained, while cotton slid.
Arabica coffee for March delivery advanced 4 percent to settle at $2.349 a pound at 2 p.m. on ICE Futures U.S., the biggest increase since Nov. 30. Earlier, the price reached $2.352, the highest since Dec. 7. The contract was the biggest gainer today among the 24 commodities tracked by the Standard & Poor’s GSCI Spot Index.
Cocoa futures for March delivery advanced 0.7 percent to close at $2,350 a metric ton in New York, after touching $2,388, the highest since Nov. 28. Prices have jumped 16 percent in three days. A strike in Nigeria, the fourth-largest producer, has added to supply concerns as adverse weather threatens crops in West Africa.
Raw-sugar futures for March delivery climbed 1.6 percent to 23.69 cents a pound on ICE, the biggest gain since Jan. 3. The sweetener plunged 27 percent last year as expanding crops in Asia and Europe more than offset a decline in production in Brazil, the top producer.
Cotton futures for March delivery dropped 0.1 percent to 96.87 cents a pound in New York, the first drop in four sessions.
CRUDE OIL
Oil fell as U.S. crude and fuel supplies climbed more than expected and concern mounted that a contracting German economy will drag Europe into recession.
Crude oil for February delivery declined $1.37, or 1.3 percent, to settle at $101.87 on the New York Mercantile Exchange. Prices are up 11 percent from a year earlier.
Brent oil for February settlement fell 90 cents, or 0.8 percent, to $112.38 a barrel on the London-based ICE Futures Europe exchange.
Royal Dutch Shell Plc sold a 12th cargo of North Sea Forties crude for January loading. Eni SpA failed to buy Russian Urals on the Mediterranean even after raising its bid. North Sea
Shell sold a Forties cargo for Jan. 22 to Jan. 24 loading to Morgan Stanley at 50 cents a barrel less than Dated Brent, according to a Bloomberg News survey of traders monitoring the Platts trading window. Yesterday, Shell sold two shipments at discounts of 40 and 60 cents.
OIL PRODUCTS
Heating oil futures fell after the Energy Department reported distillate demand slid 7.1 percent last week and inventories rose to the highest level in 12 weeks.
February-delivery heating oil fell 3.68 cents, or 1.2 percent, to settle at $3.0646 a gallon on the New York Mercantile Exchange.
Gasoline for February delivery fell 0.95 cent, or 0.3 percent, to $2.7633 a gallon on the exchange after touching $2.7328 following the report’s release.
Chicago gasoline and diesel fell after a government report showed refiners in the Midwest processed the most crude last week since July 2000.
Jet fuel premiums climbed in Europe as BP Plc bought a barge for a second day. Benchmark gasoil dropped on London’s ICE Futures Europe exchange.
PRECIOUS METALS
Gold futures rose to a four-week high as China’s physical demand surged to a record and Europe’s debt woes spurred demand for a haven.
Gold futures for February delivery advanced 0.5 percent to settle at $1,639.60 an ounce at 1:55 p.m. on the Comex in New York. Earlier, the metal reached $1,648, the highest for a most- active contract since Dec. 13.
Silver futures for March delivery gained 0.3 percent to $29.89 an ounce on the Comex.
Platinum rose to a four-week high, and palladium climbed for the third day in a row.
Palladium futures for March delivery advanced 1.6 percent to $645.65 an ounce. The price gained 3.5 percent in the previous two days.
GRAINS, OILSEEDS
Soybeans fell the most in seven weeks and corn dropped as the threat of crop damage from dry weather in South America eased following rain in Argentina and forecasts for precipitation in Brazil.
Soybean futures for March delivery dropped 2.4 percent to close at $12.03 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest drop for a most-active contract since Nov. 23. The price has declined 11 percent in the past year.
Corn futures for March delivery fell 0.1 percent to $6.515 a bushel. The price climbed 6.3 percent last month.
LIVESTOCK
Hog futures fell to the lowest in more than three weeks on speculation that demand for U.S. pork is slowing. Cattle rose.
Hog futures for February settlement dropped 1.7 percent to close at 82.9 cents a pound at 1 p.m. on the Chicago Mercantile Exchange, after reaching 82.775 cents, the lowest for a most- active contract since Dec. 16. The price has dropped 2.6 percent in the past year.
Cattle futures for February delivery rose 0.1 percent to settle at $1.21325 a pound on the CME. Prices have climbed 12 percent in the 12 months.
Feeder-cattle futures for March settlement dropped 0.4 percent to $1.50875 a pound in Chicago.
To contact the reporter on this story: Paul Burkhardt in New York at pburkhardt@bloomberg.net
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net
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