Natural Gas Advances on Supply Forecast: Commodities at Close

The Standard & Poor’s GSCI gauge of 24 commodities rose 0.3 percent to settle at 655.53 at 4 p.m. in New York, paced by a surge in natural gas.

The UBS Bloomberg CMCI index of 26 raw materials advanced 0.1 percent to 1,557.80.

NATURAL GAS

Natural gas rebounded from a six-week low in New York on forecasts for a smaller-than-normal stockpile increase in a government report this week.

FirstEnergy Capital Corp. in Calgary predicted a supply gain of 22 billion cubic feet for the week ended Aug. 10. The five-year average increase for the week is 43 billion.

On the New York Mercantile Exchange, gas futures for September delivery rose 3.9 percent to $2.834 per million British thermal units.

U.K. natural gas for delivery today climbed for a seventh day, the longest streak since October 2009, as exports rose amid Norwegian maintenance.

Same-day gas traded up 0.5 pence, or 0.9 percent to 56 pence a therm at 4:24 p.m. London time. September gas fell 0.4 percent to 56.55 pence a therm, equivalent to $8.87 per million British thermal units. A therm is 100,000 Btu.

CRUDE OIL

Crude oil snapped a two-day decline on better-than-expected economic reports from the U.S. and Germany.

On the Nymex, oil futures for September delivery advanced 0.8 percent to $93.43 a barrel.

Brent crude for September settlement gained 0.4 percent to $114.03 a barrel on the London-based ICE Futures Europe exchange.

BP Plc (BP/) sold cargoes of North Sea Forties and Ekofisk crudes. Total SA failed to find sellers for Brent, Forties, Oseberg or Ekofisk. No bids or offers were made for Russian Urals for a second day as the grade was close to its 21-year high in the Mediterranean.

France bought 340,000 cubic meters, or 2.14 million barrels, of Saharan Blend crude oil via a tender to meet its strategic supply requirements, according to the agency that manages the country’s stockpiles.

OIL PRODUCTS

Heating oil rose on speculation that the lowest seasonal level of U.S. distillate inventories since 2004 may shrink further as demand picks up before winter.

On the Nymex, heating-oil futures for September delivery climbed 0.5 percent to settle at $3.0346 a gallon.

Gasoline futures for September delivery advanced 0.4 percent to $3.0014 a gallon.

BASE METALS

Copper rose in New York for the first time in three sessions as stronger-than-estimated U.S. retail sales and German economic growth bolstered the demand outlook for the metal.

On the Comex in New York, copper futures for December delivery climbed 0.2 percent to $3.371 a pound.

On the London Metal Exchange, copper for delivery in three months rose 0.3 percent to $7,416 a ton ($3.36 a pound).

Tin and nickel advanced in London, while lead and aluminum fell. Zinc was unchanged.

PRECIOUS METALS

Gold retreated for the second straight day after retail sales in the U.S. were better than expected, reducing pressure on the Federal Reserve to announce measures to bolster the economy.

On the Comex, gold futures for December delivery fell 0.6 percent to $1,602.40 an ounce.

Silver futures for September delivery slipped less than 0.1 percent to $27.763 an ounce.

On the New York Mercantile Exchange, platinum futures for October delivery advanced 0.5 percent to $1,399.10 an ounce. Palladium futures for September delivery rose 0.6 percent to $578.40 an ounce.

SOFT COMMODITIES

Arabica-coffee futures fell to a six-week low on signs that the harvest is gathering pace in Brazil, the world’s top producer, boosting supplies.

On ICE Futures U.S. in New York, arabica coffee for December delivery dropped 0.6 percent to $1.66 a pound. Earlier, the price reached $1.6535, the lowest for a most-active contract since June 29.

Raw-sugar futures for October delivery slipped 0.3 percent to 20.32 cents a pound, capping the 11th consecutive drop and the longest slide since January 1961.

Cocoa futures for December delivery advanced 1.8 percent to $2,441 a metric ton.

Cotton futures for December delivery increased 0.6 percent to 72.09 cents a pound.

Orange-juice futures for November delivery were unchanged at $1.045 a pound.

GRAINS, OILSEEDS

Wheat futures capped the biggest three-session slump in 14 months on signs that this year’s drought-fueled rally is eroding demand for grain from the U.S, the world’s largest exporter.

On the Chicago Board of Trade, wheat futures for December delivery retreated 2 percent to $8.5825 a bushel. The most- active contract dropped 7.4 percent since Aug. 9, the biggest three-session slide since June 2011.

Corn futures for delivery in December fell 0.4 percent to $7.89 a bushel, capping a three-day drop of 4.2 percent.

Soybean futures for July delivery slid 0.2 percent to $15.98 a bushel.

LIVESTOCK

Feeder-cattle futures rose to a five-week high on signs of tightening supplies, after the worst U.S. drought since 1956 dried pastures and forced producers to sell animals earlier than normal.

On the Chicago Mercantile Exchange, feeder-cattle futures for October settlement rose 1.6 percent to $1.458 a pound, after touching $1.45875, the highest since July 6.

Cattle futures for October delivery gained 0.4 percent to $1.269 a pound, after reaching a five-month high of $1.27025.

Hog futures for October settlement rose 0.5 percent to 77.425 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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