Gold Falls for Second Day Before Fed Meets: Commodities at Close

The Standard & Poor’s GSCI gauge of 24 commodities rose 0.2 percent to 660 at 4:51 p.m. in London. The UBS Bloomberg CMCI index of 26 raw materials was up 0.2 percent at 1,589.924.

PRECIOUS METALS

Gold retreated for a second day in New York as investors awaited the outcome of a Federal Reserve meeting and physical demand declined because of holidays in Asia.

Gold futures for February delivery slid $9.30, or 0.6 percent, to $1,655.20 an ounce on the Comex in New York. Prices dropped 0.8 percent yesterday, the most in more than a week.

Silver futures for March delivery in New York slumped 0.2 percent to $31.90 an ounce, heading for the first weekly fall in four.

Precious metal markets: NI PCMKTS

NATURAL GAS

Natural gas climbed for a fourth day in New York, the longest winning streak since November, on speculation a supply glut may ease as Chesapeake Energy Corp., the second-largest U.S. producer, cuts output.

Natural gas for February delivery rose 12.7 cents, or 5 percent, to $2.681 per million British thermal units on the New York Mercantile Exchange after rising as much as 8.7 percent. Gas, which is down 40 percent from a year ago, fell to $2.231 on Jan. 23, the lowest intraday price since February 2002.

U.K. natural gas for this summer advanced for a fifth day in the longest winning streak since June as colder weather may eat into storage stocks.

Gas for summer, the six months from April, gained as much as 0.65 pence to 54 pence a therm. The contract has gained 2.9 percent this week having fallen 15 percent since the winter heating season began on Oct. 1.

U.K. natural gas: NI NUKMKT Gas market: NI GASMARKET Americas natural gas: NI AGASMARKET European natural gas: NI EGASMARKET

OIL PRODUCTS

Gasoline rose to the highest level since October on speculation that refinery closures and unit shutdowns will reduce inventories of the motor fuel on the U.S. East Coast.

Gasoline for February delivery rose 4.65 cents, or 1.7 percent, to $2.8515 a gallon on the New York Mercantile Exchange. Prices touched $2.8556, the highest intraday level since Oct. 17.

February-delivery heating oil rose 1.51 cents, or 0.5 percent, to $3.0393 a gallon on the exchange.

European gasoline barge prices rose as Petroplus Holdings AG’s refineries in the U.K. and Germany were operating at reduced capacity.

Gasoil for February delivery dropped on the ICE Futures Europe exchange in London.

Gasoline barges for immediate loading in Amsterdam- Rotterdam-Antwerp traded from $970 to $973 a ton, according to a Bloomberg survey of traders and brokers monitoring the Argus Bulletin Board. That compares with deals at $962 to $967 yesterday.

Oil Products Europe: NI OPEMKT Gasoline: NI GASOLINE Heating oil: NI HEATOIL

SOFT COMMODITIES

Raw-sugar futures fell for a second day in New York as producers sold to capitalize on recent gains while a stronger U.S. dollar erodes the appeal of commodities as alternative investments. Coffee dropped, while cocoa rose.

Raw sugar for March delivery fell 1 percent to 24.62 cents a pound on ICE Futures U.S. in New York.

Arabica-coffee futures for March delivery slid 0.6 percent to $2.1905 a pound in New York. Before today, the price dropped 2.8 percent this month.

Cocoa futures for March delivery rose 0.3 percent to $2,421 a metric ton on ICE, the third consecutive increase. The chocolate ingredient climbed 14 percent this year through yesterday. Earlier the price touched $2,456, the highest for a most-active contract since Nov. 22.

In London futures trading, refined sugar fell, while cocoa rose and robusta coffee was steady on NYSE Liffe.

Soft commodities markets: NI SOMKTS

CRUDE OIL

Oil rose as a U.S. government report showed fuel demand increased last week and gasoline production dropped to the lowest level in almost two years.

Crude oil for March delivery rose 34 cents, or 0.3 percent, to $99.29 a barrel on the New York Mercantile Exchange. Futures traded at $97.70 a barrel before the release of the report at 10:30 a.m. in Washington. Prices are up 15 percent from a year earlier.

Brent oil for March settlement increased 52 cents, or 0.5 percent, to $110.55 a barrel on the London-based ICE Futures Europe exchange.

Crude oil futures: NI CRMKTS

BASE METALS

Copper futures for March delivery rose 1.05 cents, or 0.3 percent, to $3.818 a pound on the Comex in New York, Earlier, the metal fell as much as 1.2 percent. Before the loss, the price climbed to $3.8395, the highest for a most-active contract since Sept. 19.

Base metals markets: NI BMMKTS

European Carbon Permits

European Union carbon permits rose to their highest since Dec. 29 as German power and U.K. natural gas advanced.

EU allowances for December increased as much as 2.9 percent to 7.73 euros ($10.06) a metric ton on the ICE Futures Europe exchange in London.

EU Carbon Emissions: NI ECBMKT

GRAINS, OILSEEDS

Soybeans and corn fell for the first time this week on speculation that rain will boost yield potential in Brazil and Argentina, the world’s biggest producers after the U.S.

Soybean futures for March delivery dropped 0.8 percent to $12.105 a bushel on the Chicago Board of Trade. Yesterday, the oilseed touched $12.295, the highest for the most-active contract since Jan. 11.

Corn futures for March delivery fell 0.3 percent to $6.285 a bushel on the CBOT. Earlier, the price rose to $6.3625, the highest Jan. 12.

Wheat futures rose to the highest in almost three weeks on speculation that demand will increase for U.S. exports as supplies decline in Russia.

Wheat futures for March delivery rose 0.6 percent to $6.375 a bushel on the Chicago Board of Trade. Earlier, the price touched $6.4975, the highest for a most-active contract since Jan. 5.

Grain markets: NI GRMKTS

LIVESTOCK

Cattle futures declined from a record, heading for the first drop this week, on speculation that higher costs are forcing U.S. beef processors to slow animal purchases. Hog prices rose.

Cattle futures for April delivery fell 0.1 percent to $1.29 a pound on the Chicago Mercantile Exchange. Earlier, prices reached $1.29675, the highest for the most-active contract since the commodity started trading on the CME in 1964.

Feeder-cattle futures for March settlement declined 0.2 percent to $1.54625 a pound on the CME, after reaching a record $1.554.

Hog futures for April settlement rose 0.3 percent to 88.15 cents a pound in Chicago. Before today, prices climbed 1.9 percent in the past year.

Livestock markets: NI LVMKTS

To contact the reporter on this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net

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