Crude Slides; Corn, Wheat, Soybeans Drop: Commodities at Close
Oil slid from the highest close in two weeks in New York amid speculation that its biggest gain in more than a month was excessive. Tropical Storm Ernesto slowed as it headed westward in the Caribbean.
Oil for September delivery slid as much as 77 cents to $90.63 a barrel in electronic trading on the New York Mercantile Exchange and was at $90.68 at 9:18 a.m. in London. It surged $4.27 to $91.40 on Aug. 3, the highest settlement since July 20. Prices are 8.2 percent lower this year.
Natural-gas futures fell in New York for a fifth day, the longest losing streak since March, as forecasts called for a break in recent heat and signaled reduced demand from power plants.
The premium of Japan naphtha to London-traded Brent crude futures rose $20.88, or 38 percent, to $75.63 a metric ton at 5:04 p.m. Singapore time, according to data compiled by Bloomberg. This crack spread , a measure of processing profit, widened for a second week last week.
Gasoil’s premium to Asian marker Dubai crude rebounded 30 cents to $18.15 a barrel at 2:05 p.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. The difference, also known as the crack spread, retraced the previous day’s losses.
Gold gained for a second day in London on speculation the Federal Reserve will do more to support growth.
Immediate-delivery bullion rose 0.1 percent to $1,605.70 an ounce by 9:32 a.m. in London. Prices dropped 1.2 percent last week, the most since June 22. December-delivery futures were little changed at $1,608.40 on the Comex in New York.
Copper may fall in London, extending last week’s drop, as a warning by Italian Prime Minister Mario Monti that policy disagreements are undermining the European Union added to concerns about the region’s economic growth.
GRAINS, OILSEEDS, SOFT COMMODITIES
Soybeans declined to the lowest level in more than a week as rains forecast in parts of the Midwest may help revive parched crops in the largest U.S. growing region. Corn and wheat also fell.
Soybeans for November delivery lost as much as 3.3 percent to $15.7575 a bushel, the lowest price on the Chicago Board of Trade since July 27. They traded at $15.92 at 2:24 p.m. Singapore time.
Corn for December delivery slipped as much as 2.3 percent to $7.8925 a bushel in Chicago before trading at $7.985. Wheat for December delivery slid 0.6 percent to $8.98 a bushel.
Palm oil fell on speculation reserves in Malaysia, the second-largest producer, probably climbed the most in 10 months in July as output rose and exports dropped, easing supply concerns as a drought reduces U.S. soybean yields.
The October-delivery contract declined as much as 0.3 percent to 2,909 ringgit ($936) a metric ton on the Malaysia Derivatives Exchange, and was at 2,912 ringgit at 5:11 p.m. in Kuala Lumpur. Futures declined for a fourth week last week.
Rubber rebounded from the lowest level since November 2009 after U.S. payrolls climbed more than forecast and creditors said Greece is making progress on bailout terms, fueling optimism demand for commodities may increase.
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