Corn Has Biggest Two-Day Gain in 20 Months: Commodities at Close

The Standard & Poor’s GSCI gauge of 24 raw materials rose 0.8 percent to settle at 586.31 at 3:53 p.m. in New York, led by corn.

The UBS Bloomberg CMCI index of 26 prices advanced 1.4 percent to 1,453.06.

GRAINS, OILSEEDS

Corn jumped, capping the biggest two-day increase in 20 months, as hot, dry weather reduced yield potential for crops in the Midwest, the largest U.S. growing region.

Parched conditions in the next three days will increase stress on about a third of the Midwest crop, Commodity Weather Group LLC said in a report.

On the Chicago Board of Trade, corn futures for December delivery surged 5.5 percent to $5.635 a bushel. In two days, the most-active contract surged 11 percent, the most since October 2010.

Soybean futures for November delivery, after the harvest, advanced 3.4 percent to $13.845 a bushel.

Wheat futures for December delivery climbed 3.1 percent to $6.935 a bushel.

SOFT COMMODITIES

Cotton futures for July delivery surged a record 6 percent in New York on speculation that supplies for next month will be pinched after exports sales soared.

On ICE Futures U.S., cotton for July delivery jumped by the exchange limit of 5 cents to settle at 87.98 cents, the highest since May 7. The percentage jump was the record for the contract.

Orange-juice futures for July delivery soared 6.4 percent to $1.1975 a pound, the biggest gain for a most-active contract since Jan. 10.

Raw-sugar futures for October delivery climbed 4 percent to 20.79 cents a pound, the biggest gain since June 6.

Cocoa futures for September delivery rose 2.1 percent to $2,235 a ton.

Arabica-coffee futures for September delivery soared 4.8 percent to $1.588 a pound.

BASE METALS

Copper futures rose, extending the longest rally in seven weeks, on signs of recovery in the U.S. housing market and prospects for higher demand in China, the world’s largest consumer of industrial metals.

On the Comex in New York, copper futures for September delivery advanced 1.1 percent to $3.441 a pound. The price climbed for fifth straight session, the longest rally since May 1.

On the London Metal Exchange, copper for delivery in three months climbed 1.3 percent to $7,609 a metric ton ($3.45 a pound).

Nickel, zinc, tin and lead also gained on the LME, while aluminum dropped.

CRUDE OIL

Crude oil advanced on optimism that Europe’s debt crisis is easing and speculation that the Federal Reserve will announce measures to boost the U.S. economy.

On the Nymex, oil futures for July delivery, which expires tomorrow, rose 0.9 percent to $84.03 a barrel.

Brent oil for August settlement slid 0.3 percent to $95.76 a barrel on the London-based ICE Futures Europe Exchange

Vitol Group failed to sell North Sea Forties blend at the same price as yesterday’s trade. Total SA bought Russian Urals at a smaller discount to Dated Brent than the last transaction in the Mediterranean.

Nexen Inc. will shut the Buzzard oil field, the biggest stream for the North Sea Forties blend, for four weeks in the third quarter for a scheduled five-year regulatory inspection, said Davis Sheremata, a Calgary-based spokesman.

OIL PRODUCTS

Heating oil rose on speculation that the Fed will act to stimulate the economy, bolstering fuel demand.

On the Nymex, heating-oil futures for July delivery advanced 0.7 percent to $2.6351 a gallon.

Gasoline futures for July delivery slid 0.7 percent to $2.6415 a gallon.

PRECIOUS METALS

Gold fell for the second straight day as a drop in Spanish bond yields signaled easing concern that Europe’s debt crisis is worsening, eroding the appeal of the precious metal as a haven.

On the Comex, gold futures for August delivery slid 0.2 percent to $1,623.20 an ounce.

Silver futures for July delivery dropped 1.1 percent to $28.368 an ounce.

On the New York Mercantile Exchange, platinum futures for July delivery fell 0.2 percent to $1,480.50 an ounce. Palladium futures for September delivery slipped 0.6 percent to $629.40 an ounce.

NATURAL GAS

Natural gas dropped from a three-week high on forecasts of milder weather that may reduce demand for the power-plant fuel.

On the New York Mercantile Exchange, gas futures for July delivery fell 3.4 percent to $2.545 per million British thermal units.

U.K. gas for immediate delivery dropped as demand for the fuel slumped while pipeline work halted exports to Belgium.

Gas slid as much as 1.4 pence to 53.5 pence a therm and was at 53.85 pence at 4:30 p.m. in London time. That’s equivalent to $8.47 per million British thermal units. A therm is 100,000 BTU.

LIVESTOCK

Cattle futures fell on speculation that above-average temperatures in parts of the U.S. will make it too hot for outdoor grilling, reducing demand for meats including beef.

On the Chicago Mercantile Exchange, cattle futures for August delivery slid 0.4 percent to $1.175 a pound.

Feeder-cattle futures for August settlement slumped 1.6 percent to $1.536 a pound.

Hog futures for August settlement fell 0.5 percent to 92.775 cents a pound.

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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