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Industrial Metals Lead Rally on Fed’s QE3: Commodities at Close

The Standard & Poor’s GSCI Spot Index of 24 raw materials rose 1 percent to settle at 694.21 at 4 p.m. in New York, led by industrial metals.

The UBS Bloomberg CMCI gauge of 26 prices advanced 1.5 percent to 1,674.36.

BASE METALS

Copper jumped to a four-month high after the Federal Reserve announced more monetary stimulus aimed at stoking growth in the U.S., the world’s second-biggest consumer of the metal.

The Fed said yesterday it will buy $40 billion of mortgage debt a month, the third round of so-called quantitative easing. China, the biggest copper user, approved new infrastructure projects this month, and the European Central Bank announced a bond-buying plan to stem the region’s debt crisis.

On the Comex in New York, copper futures for December delivery increased 3.3 percent to $3.8325 a pound after reaching $3.838, the highest for a most-active contract since May 2.

On the London Metal Exchange, aluminum climbed for the 11th straight session, the longest rally since at least June 1987.

Copper for delivery in three months climbed 3.8 percent to $8,380 a metric ton ($3.80 a pound) on the LME. Nickel, tin, zinc and lead also rose.

PRECIOUS METALS

Platinum rose, capping the longest rally in 25 years, after the Fed took steps yesterday to bolster the U.S. economy, and strikes halted output at some mines in South Africa, the world’s largest producer.

The metal for immediate delivery increased 1.4 percent to $1,709 an ounce. The price climbed for the 11th straight session, the longest rally since at least January 1987.

On the New York Mercantile Exchange, platinum futures for October delivery gained 2 percent to $1,713.70.

Palladium futures for December delivery added 1.5 percent to $699.30 an ounce.

On the Comex, gold futures for delivery in December rose 60 cents to $1,772.70 an ounce.

Silver futures for December delivery fell 0.4 percent to $34.656 an ounce.

CRUDE OIL

Crude oil climbed to the highest in more than four months on the Fed’s QE3.

On the Nymex, oil futures for October delivery advanced 0.7 percent to $99 a barrel, the highest settlement since May 3.

Brent oil for November settlement rose 0.7 percent to $116.66 a barrel on the London-based ICE Futures Europe exchange.

Vitol Group failed to buy Kazakh CPC crude for a second day. There were no bids or offers for North Sea Forties blend for a second day.

Nigeria raised its October official selling price for Bonny Light and Qua Iboe crude grades, the Nigerian National Petroleum Corp. said in an e-mailed statement.

OIL PRODUCTS

Gasoline rose the most in two weeks on the Fed’s stimulus program.

On the Nymex, gasoline futures for October delivery increased 1.8 percent to $3.0156 a gallon, the biggest gain since Aug. 27.

Heating-oil futures for October delivery climbed 0.9 percent to $3.2395 a gallon, the highest settlement since April 2.

SOFT COMMODITIES

Cocoa rose for the first time in six sessions on speculation that crops in Ivory Coast, the world’s largest grower, will fail to meet demand.

On ICE Futures U.S. in New York, cocoa for December delivery climbed 1.1 percent to $2,642 a ton.

Orange-juice futures for November delivery increased 2.2 percent to $1.3215 a pound.

Raw-sugar futures for March delivery advanced 1.7 percent to 20.77 cents a pound, the sixth straight gain.

Arabica-coffee futures for December delivery added 1.3 percent to $1.811 a pound.

Cotton futures for December delivery jumped 3.2 percent to 75.9 cents a pound.

GRAINS, OILSEEDS

Wheat futures jumped to a one-month high as commodities rallied after the Fed announced QE3.

On the Chicago Board of Trade, wheat futures for December delivery rose 2.5 percent to $9.2425 a bushel. Earlier, the price reached $9.31, the highest since Aug. 10.

Corn futures for December delivery advanced 1.1 percent to $7.82 a bushel.

Soybean futures for November delivery dropped 0.5 percent to $17.39 a bushel.

LIVESTOCK

Hog futures climbed to the highest in more than a week on speculation that demand will increase for U.S. pork exports.

On the Chicago Mercantile Exchange, hog futures for December settlement rose 2.1 percent to 73.9 cents a pound after touching 73.95 cents, the highest since Sept. 5.

Cattle futures for delivery in December fell 0.3 percent to settle at $1.29925 a pound.

Feeder-cattle futures for October settlement slipped 0.3 percent to settle at $1.46625 a pound.

NATURAL GAS

Natural gas fell for the second straight day as forecasts for mild weather signaled declining demand from power plants.

On the Nymex, gas futures for October delivery fell 3.1 percent to $2.943 per million British thermal units.

U.K. gas rose as forecasts for cooler-than-average weather boosted demand for the heating fuel, and maintenance in Norway cut supplies.

The October price climbed 1.3 percent to 60.8 pence a therm. That’s equivalent to $9.88 per million Btu. A therm is 100,000 Btu.

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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