Oil, Copper Rise; Rubber, Palm Oil Decline: Commodities at Close
Oil advanced from the lowest close in a week in New York after a Chinese manufacturing index signaled the world’s second- largest crude user may be pulling out of an economic slowdown.
Oil for September delivery gained as much as 83 cents to $88.97 a barrel in electronic trading on the New York Mercantile Exchange and was at $88.55 at 10:06 a.m. London time. The contract dropped $3.69 to $88.14 yesterday, the lowest since July 13. Prices are down 10 percent this year.
Natural gas futures were little changed in New York near a seven-month high on forecasts for hotter-than-normal weather that may boost demand for the fuel from power plants.
The premium of gasoil to Dubai crude fell 4 cents to $18.18 a barrel, PVM data showed. The spread narrowed for the first day since July 13.
Singapore gasoil swaps for August dropped 70 cents, or 0.6 percent, to $117.80 a barrel.
Japan naphtha’s premium to London-traded Brent crude futures fell $3.71, or 5.3 percent, to $66.83 a metric ton at 11:25 a.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker.
Naphtha swaps for August fell $2.50, or 0.3 percent, to $846 a ton, PVM data showed.
Gold is set to decline for a second day in London on speculation that Europe’s debt crisis will bolster the dollar and cut demand for the metal as an alternative investment.
Bullion for immediate delivery fell 0.2 percent to $1,574 an ounce by 9:03 a.m. in London. Prices are up 0.7 percent this year. August-delivery futures were 0.3 percent lower at $1,573.40 on the Comex in New York.
Silver for immediate delivery declined 0.4 percent to $26.9275 an ounce. Palladium slipped 0.8 percent to $566.20 an ounce. Platinum was 0.3 percent lower at $1,395.88 an ounce.
Copper was seen climbing in London after a gauge of Chinese manufacturing indicated a contraction may be slowing, underpinning the outlook for demand in the biggest global consumer of the metal.
GRAINS, OILSEEDS, SOFT COMMODITIES
Corn and soybeans declined for a second day as investors cashed in gains from the rally to records on concern that Europe’s debt crisis is worsening and after rains were forecast in parts of the U.S. Corn Belt.
Corn for December delivery fell 0.4 percent to $7.8275 a bushel on the Chicago Board of Trade at 2:17 p.m. Singapore time, after losing as much as 2.1 percent. Futures jumped to a record $8 yesterday, before closing 1.3 percent lower.
Soybeans for November delivery declined as much as 3.4 percent to $15.6725 a bushel, before trading at $15.855. Futures surged yesterday to a record $16.915 a bushel, before closing 3.8 percent lower. The most-active contract is headed for the biggest two-day loss since June 1.
Wheat for September delivery slipped 2.2 percent $8.93 a bushel. Futures closed 3.2 percent lower yesterday after trading at $9.4725, the highest price since August 2008.
Palm oil dropped to the lowest level in five weeks, falling for a third session, on concern that Europe’s debt crisis is set to worsen, crimping demand for commodities including edible oils.
The October-delivery contract lost as much as 2.8 percent to 2,905 ringgit ($914) a metric ton on the Malaysia Derivatives Exchange, the lowest price for a most-active contract since June 18. Futures were at 2,916 ringgit at 5:26 p.m. in Kuala Lumpur.
Rubber fell for a third day to the lowest level in almost 33 months on concern that China’s economic slowdown may cut demand from the world’s largest user.
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