Natural Gas Rises on Cooling-Use Outlook: Commodities at Close

The Standard & Poor’s GSCI gauge of 24 raw materials rose 0.6 percent to settle at 584.39 at 4:31 p.m. New York time, led by natural gas.

The UBS Bloomberg CMCI Index of 26 prices advanced 0.5 percent to 1,422.33.

NATURAL GAS

Natural gas rose from a four-week low on speculation that warm-weather forecasts for the eastern U.S. will increase fuel demand from power plants.

The potential increased for above-normal temperatures in central and eastern states over the next six to 15 days, according to MDA EarthSat Weather in Gaithersburg, Maryland. U.S. cooling demand will be 20 percent above normal from June 10 to June 14, according to Weather Derivatives in Belton, Missouri.

On the New York Mercantile Exchange, gas futures for July delivery increased 3.8 percent to $2.415 per million British thermal units. The price has climbed 27 percent from a 10-year low of $1.902 on April 19.

CRUDE OIL

Crude oil rose for the first time in a week as the euro strengthened against the dollar after European leaders agreed to discuss closer banking cooperation.

On the Nymex, oil futures rose 0.9 percent to $83.98 a barrel. Earlier, the price touched $81.21, the lowest since Oct. 6.

OIL PRODUCTS

Gasoline rose as the dollar fell against the euro after European leaders agreed to discuss more cooperation among banks.

On the Nymex, gasoline futures for July delivery rose 0.5 percent to $2.6707 a gallon.

Heating-oil futures for July delivery were little changed at $2.6269 a gallon.

PRECIOUS METALS

Gold fell for the second time in three sessions after central banks refrained from adding additional stimulus measures to boost their economies amid Europe’s intensifying fiscal crisis and signs of a slowdown in the U.S.

On the Comex in New York, gold futures for August delivery slid 0.5 percent to $1,613.90 an ounce.

Silver futures for July delivery declined 1.8 percent to $28.007 an ounce.

On the Nymex, platinum futures for July delivery dropped 0.4 percent to $1,427.30 an ounce. Palladium futures for September delivery fell 10 cents to $613.90.

BASE METALS

Copper futures fell to the lowest since December as evidence of slowing growth in China and an unexpected drop in U.S. factory orders dimmed prospects for demand in the world’s two biggest consumers of the metal.

On the Comex, copper futures for delivery in July declined 0.2 percent to $3.307 a pound, after touching $3.238, the lowest for a most-active contract since Dec. 15.

SOFT COMMODITIES

Cotton futures tumbled to a 31-month low on signs that a slowing world economy will expand a surplus of the fiber, reducing costs for clothing retailers including J. Crew Group Inc. and American Eagle Outfitters Inc.

On ICE Futures U.S. in New York, cotton for December delivery fell 0.8 percent to 67.06 cents a pound, after sliding to 64.61 cents, the lowest since Oct. 13, 2009. The commodity has plunged 52 percent in the past 12 months.

Raw-sugar futures for July delivery declined 1 percent to 18.9 cents a pound.

Orange-juice futures for July delivery fell 0.2 percent to $1.115 a pound.

Arabica-coffee futures for July delivery rose 0.6 percent to $1.5845 a pound.

Cocoa futures for July delivery climbed 1.5 percent to $2,094 a metric ton.

GRAINS, OILSEEDS

Corn futures rose the most in two weeks and soybeans gained on speculation that hot, dry weather will erode prospects for crops in the U.S. Midwest.

On the Chicago Board of Trade, corn futures for July delivery jumped 3 percent to $5.68 a bushel, the biggest gain for a most-active contract since May 16.

Soybean futures for November delivery climbed 0.8 percent to $12.6825 a bushel, snapping a three-session slump.

Wheat futures for July delivery gained 2.5 percent to $6.2775 a bushel on the CBOT, the first gain since May 25.

LIVESTOCK

Hog prices fell from a seven-week high on speculation that U.S. meatpacker purchases are slowing as global economic woes curb demand and as pork supplies gain.

On the Chicago Mercantile Exchange, hog futures for July settlement fell 0.6 percent to 91.05 cents a pound, after reaching 92.15 cents, the highest since April 13.

Cattle futures for August delivery rose 0.3 percent to $1.19975 a pound.

Feeder-cattle futures for August settlement climbed 0.7 percent to settle at $1.58475 a pound.

----With assistance from Tony C. Dreibus, Jeff Wilson and Elizabeth Campbell in Chicago; Moming Zhou, Debarati Roy, Mark Shenk, Naureen S. Malik, Marvin G. Perez and Joe Richter in New York; and Barbara J. Powell in Dallas. Editors: Thomas Galatola, Patrick McKiernan

To contact the reporter on this story: Thomas Galatola in New York at tgalatola@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

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