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Crude Oil Leads Declines on Inventory Gain: Commodities at Close

The Standard & Poor’s GSCI Spot Index of 24 raw materials dropped 2 percent to 656.73 in New York, the lowest since Aug. 14. Crude oil and petroleum products led the declines.

The UBS Bloomberg CMCI gauge of 26 prices fell 1.1 percent to 1,614.64, the third straight drop.

CRUDE OIL

Oil tumbled to a six-week low after U.S. crude inventories surged the most since March as production and imports rebounded from Hurricane Isaac.

The Energy Department said supplies rose 8.53 million barrels last week, more than eight times what was projected in a Bloomberg survey. Imports arrived at the highest rate since January and output increased. Crude fell earlier on speculation Saudi Arabia is moving to reduce prices.

Crude oil for October delivery declined $3.31, or 3.5 percent, to $91.98 a barrel on the New York Mercantile Exchange, the lowest settlement since Aug. 3. It was the biggest drop since July 23. Futures are down 6.9 percent this year.

Brent oil for November settlement fell $3.84, or 3.4 percent, to $108.19 a barrel on the London-based ICE Futures Europe, the lowest close since Aug. 2.

OIL PRODUCTS

Heating oil futures slid to a one-month low as Brent crude, a benchmark for more than half of the world’s oil, weakened on speculation that Saudi Arabia is increasing supply.

Nymex heating oil for October delivery fell 8.31 cents, or 2.7 percent, to settle at $3.044 a gallon, and have lost 6 percent in three days. Futures traded below the 40-day moving average for the first time since July 9.

October-delivery gasoline fell 7.04 cents, or 2.4 percent, to $2.8286 a gallon, the lowest settlement since July 26. Prices have fallen 6.2 percent this week.

NATURAL GAS

Natural gas futures slid for a fifth day in New York on forecasts of mild weather that may limit gas demand for electricity generation while a report tomorrow may show record supplies for this time of year.

Nymex gas for October delivery fell 1.1 cents to settle at $2.762 per million British thermal units. The futures have declined 7.6 percent this year.

SOFT COMMODITIES

Sugar fell for a second session on signs that global supplies may be more than forecast. Arabica coffee fell as inventories monitored by ICE Futures U.S. climbed to the highest in more than two years. Cocoa, cotton and orange juice also rose.

Raw sugar for March delivery fell 2.3 percent to close at 19.69 cents a pound on ICE Futures U.S. in New York. Yesterday, prices slid 3 percent, the biggest drop for a most-active contract since Aug. 21.

Arabica futures for December delivery fell 1.7 percent to close at $1.744 a pound on ICE in New York.

Robusta, used in instant coffee, for November delivery fell 0.3 percent to $2,017 a metric ton on NYSE Liffe in London.

ICE orange-juice futures for November delivery gained 0.1 percent to $1.266 a pound.

New York cocoa futures for December delivery gained 0.2 percent to $2,538 a ton.

Cotton futures for December delivery rose 0.5 percent to 76.41 cents a pound in New York.

GRAINS, OILSEEDS

Soybeans rose from a one-month low and corn rallied the most in three weeks on speculation that a September slump in prices is spurring increased demand from makers of livestock feed, biofuels and food.

Wheat rose for the first time in three sessions on speculation that declining production in Russia, the world’s third-biggest exporter last season, will improve demand for U.S. supplies.

On the Chicago Board of Trade, soybean futures for November delivery rose 1.8 percent to close at $16.695 a bushel, the biggest gain in a week. Prices still are down 5 percent this month.

CBOT corn futures for December delivery gained 2.2 percent to $7.565 a bushel on the CBOT, the biggest increase since Aug. 29. Yesterday, the most-active contract touched $7.39, the lowest since July 13.

CBOT Wheat futures for December delivery rose 2.1 percent to $8.815 a bushel. The price plunged 6.6 percent in the previous two days, the biggest two-session loss since July 24.

PRECIOUS METALS

Gold futures rose to 29-week high on speculation that steps by central banks to bolster economic growth will spur demand for the metal as a store of value.

The Bank of Japan said today that it will add 10 trillion yen ($127 billion) to a fund that buys assets. On Sept. 13, the Federal Reserve announced a third round of U.S. monetary stimulus. This month, European Central Bank President Mario Draghi gave details on a plan to buy debt of member states, while China approved infrastructure spending.

On the Comex in New York, gold futures for December delivery climbed 50 cents to settle at $1,771.70 an ounce. Earlier, the price reached $1,781.80, the highest for a most- active contract since Feb. 29. The metal has gained 13 percent this year.

Silver futures for December delivery fell 0.4 percent to $34.588 an ounce.

Nymex platinum futures for October delivery increased 0.3 percent to $1,640.40 an ounce.

Palladium futures for December delivery rose 0.9 percent to $673.05 an ounce on the Nymex.

BASE METALS

Copper rose to a four-month high after Japan’s central bank expanded its asset-purchase program to fuel economic growth and U.S. home sales jumped, bolstering prospects for metal demand.

Copper futures for December delivery climbed 0.7 percent to settle at $3.814 a pound on the Comex in New York. Earlier, the price reached $3.8395, the highest for a most-active contract since May 2. The metal has gained 11 percent this year.

On the London Metal Exchange, copper for delivery in three months rose 0.4 percent to $8,350 a metric ton ($3.79 a pound). Zinc gained, while aluminum, nickel, lead and tin dropped.

LIVESTOCK

Hog futures rose to a two-week high on signs that demand from U.S. meatpackers for animals is climbing. Cattle gained.

Hog futures for December settlement climbed 0.7 percent to settle at 74.725 cents a pound at 1 p.m. on the Chicago Mercantile Exchange. Earlier, the price reached 74.825 cents, the highest for a most-active contract since Sept. 5.

Cattle futures for December delivery rose 0.2 percent to $1.291 a pound. The price has climbed 6.3 percent this year.

Feeder-cattle futures for October settlement dropped 0.3 percent to $1.47 a pound.

To contact the reporter on this story: Naureen S. Malik in New York at nmalik28@bloomberg.net;

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

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