Crude Oil Drops as Manufacturing Shrinks: Commodities at Close

The Standard & Poor’s GSCI gauge of 24 raw materials fell 0.3 percent to settle at 597.4 at 4 p.m. in New York, led by crude oil.

The UBS Bloomberg CMCI index of 26 prices declined 0.1 percent to 1,484.59.

CRUDE OIL

Crude oil fell after manufacturing in the U.S. unexpectedly shrank in June for the first time in almost three years.

The Institute for Supply Management’s U.S. factory index fell to 49.7 in June from 53.5 from the previous month. Euro- area unemployment reached the highest on record in May, government data showed.

On the New York Mercantile Exchange, oil futures for August delivery slid 1.4 percent to $83.75 a barrel.

Brent oil for August settlement on the London-based ICE Futures Europe exchange fell 0.5 percent to $97.34 a barrel.

Mercuria Energy Trading SA bought a cargo of North Sea Forties while Total SA and Morgan Stanley sought to purchase the blend without success. No bids or offers were shown for Russian Urals crude for a second day.

OAO Surgutneftegas, a Russian oil producer, sold three Urals cargoes of 100,000 metric tons each via a tender to Royal Dutch Shell Plc and Statoil ASA for loading from the Baltic Sea port of Primorsk, according to three traders who participate in the market.

BASE METALS

Copper declined the most in a week on concern that demand is poised to slump as manufacturing deteriorates worldwide.

On the Comex in New York, copper futures for September delivery fell 0.8 percent to $3.469 a pound, the biggest drop for a most-active contract since June 21.

On the London Metal Exchange, copper for delivery in three months slid 0.8 percent to $7,625 a metric ton ($3.46 a pound).

Aluminum and zinc dropped, while tin, nickel and lead rose.

PRECIOUS METALS

Gold futures declined as the dollar rebounded, eroding demand for the precious metal as an alternative investment.

On the Comex, gold futures for August delivery fell 0.4 percent to $1,597.70 an ounce.

Silver futures for September delivery dropped 0.4 percent to $27.499 an ounce.

On the Nymex, platinum futures for October delivery advanced 0.4 percent to $1,458.30 an ounce. Palladium futures for September delivery slumped 1.1 percent to $578 an ounce.

OIL PRODUCTS

Heating oil declined as reports from the U.S., China and Europe signaled a slowing global economy will damp fuel demand.

On the Nymex, heating-oil futures for August delivery slid 1.3 percent to $2.6759 a gallon.

Gasoline futures for August delivery fell 0.3 percent to $2.6239 a gallon.

NATURAL GAS

Natural gas settled unchanged amid speculation that storm- related blackouts in the eastern U.S. and the Fourth of July holiday will reduce demand for the power-plant fuel.

On the Nymex, gas futures for August delivery closed at $2.824 per million British thermal units.

U.K. gas for delivery tomorrow climbed as exports to Belgium reached the highest in a month and Dutch imports slumped.

Gas gained 0.3 percent to 56.65 pence a therm at 4:06 p.m. London time. August gas was little changed at 55.75 pence a therm. That’s equivalent to $8.74 per million Btu. A therm is 100,000 Btu.

SOFT COMMODITIES

Sugar climbed to a two-month high on supply concerns in Brazil, the world’s biggest producer and exporter.

On ICE Futures U.S. in New York, raw sugar for October delivery rose 1.9 percent to 21.4 cents a pound. Earlier, the price reached 21.59 cents, the highest since April 26.

Arabica-coffee futures for September delivery increased 2.3 percent to $1.746 a pound.

Cocoa futures for September delivery fell $1 to $2,290 a ton.

Orange juice for September delivery slumped 3.6 percent to $1.1735 a pound.

Cotton futures for December delivery rose 1 percent to 72.02 cents a pound.

GRAINS, OILSEEDS

Corn surged to the highest in almost three months, and soybeans rose as hot, dry weather threatens to reduce yields in the U.S., the world’s biggest producer of both crops.

On the Chicago Board of Trade, corn futures for December delivery jumped 3.3 percent to $6.5575 a bushel. The price earlier reached $6.64 a bushel, the highest since April 9.

Soybean futures for November delivery rose 0.7 percent to $14.38 a bushel.

Wheat futures for September delivery gained 2 percent to $7.725 a bushel.

LIVESTOCK

Hog prices rose to the highest in almost a year on signs that hot weather in the U.S. will curb livestock weights and deter producers from slaughtering animals reducing pork supplies.

On the Chicago Mercantile Exchange, hog futures for August settlement climbed 0.2 percent to 94.975 cents a pound. Earlier, the price reached 96.325 cents, the highest since July 7, 2011.

Cattle futures for August delivery dropped 1 percent to $1.19275 a pound, the biggest decline since June 13.

Feeder-cattle futures for August settlement fell 1.2 percent to $1.4965 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: Patrick McKiernan at pmckiernan@bloomberg.net

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