Natural Gas Rises as Power Demand Gains: Commodities at Close

The Standard & Poor’s GSCI Spot Index of 24 raw materials rose 0.1 percent to settle at 658.66 at 4 p.m. in New York, led by natural gas.

The UBS Bloomberg CMCI gauge of 26 prices advanced 0.5 percent to 1,620.32.

NATURAL GAS

Natural gas gained for the third time in four sessions on speculation that increased demand from electricity generators because of fuel switching will help reduce a supply glut.

Power plants have consumed 27.3 billion cubic feet of gas a day this month, up 21 percent from a year ago, data from LCI Energy Insight in El Paso, Texas, show. A surplus has been cut as electricity generators burned more gas instead of coal.

On the New York Mercantile Exchange, gas futures for October delivery increased 3.1 percent to $2.924 per million British thermal units.

U.K. gas for next-day delivery advanced as Gassco AS said supply from its Kollsnes processing plant in Norway will be cut by 40 million cubic meters a day.

The price rose 0.9 percent to 61 pence a therm at 4:53 p.m. London time. Month-ahead gas climbed 1 percent to 59.53 pence a therm. That’s equivalent to $9.66 per million Btu. A therm is 100,000 Btu.

BASE METALS

Copper gained for the second time in three sessions as signs of stabilization in China’s economy and further recovery in U.S. housing brightened prospects for metal demand.

On the Comex in New York, copper futures for December delivery climbed 0.7 percent to $3.7585 a pound.

On the London Metal Exchange, copper for delivery in three months rose 1.1 percent to $8,275 a metric ton ($3.75 a pound). Aluminum, tin, nickel, zinc and lead also gained.

SOFT COMMODITIES

Sugar gained the most in two weeks on speculation that adverse weather in Brazil, the world’s top exporter, and India may limit global supplies.

On ICE Futures U.S. in New York, raw sugar for March delivery climbed 2.2 percent to 20.72 cents a pound, the biggest gain for a most-active contract since Sept. 7.

Cocoa futures for December delivery rose 1.5 percent to $2,483 a metric ton.

Arabica-coffee futures for December delivery increased 0.8 percent to $1.7365 a pound.

Orange juice for November delivery declined 3.3 percent to $1.1445 a pound.

Cotton futures for December delivery fell 0.2 percent to 72.33 cents a pound.

OIL PRODUCTS

Gasoline advanced as U.S. home prices rose more than expected in July and consumer confidence jumped to a seven-month high in September.

On the Nymex, gasoline futures for October delivery rose 1.7 percent to $2.9671 a gallon.

Heating-oil futures for October delivery gained 0.3 percent to $3.1086 a gallon.

PRECIOUS METALS

Gold futures rose on speculation that moves by central banks to bolster their economies will spur demand for the metal as a store of value.

On the Comex, gold futures for December delivery climbed 0.1 percent to $1,766.40 an ounce.

Silver futures for December delivery fell 0.1 percent to $33.948 an ounce.

On the Nymex, platinum futures for January delivery rose 0.6 percent to $1,636 an ounce. Palladium futures for December delivery dropped 0.7 percent to $640.85 an ounce.

LIVESTOCK

Cattle futures tumbled the most in five months on signs of slowing demand from U.S. meatpackers as beef prices drop.

On the Chicago Mercantile Exchange, cattle futures for December delivery fell 2 percent to $1.258 a pound, the biggest drop since April 24.

Feeder-cattle futures for November settlement declined 1.5 percent to $1.46525 a pound, the biggest drop since July 25.

Hog futures for December settlement slid 0.9 percent to 74.65 cents a pound.

CRUDE OIL

Crude oil fell to a seven-week low as Federal Reserve Bank of Philadelphia President Charles Plosser said a new stimulus program probably won’t boost the economy.

On the Nymex, oil futures for November delivery dropped 0.6 percent to $91.37 a barrel, the lowest since Aug. 2.

Brent oil for November settlement rose 0.6 percent to $110.45 a barrel on the London-based ICE Futures exchange.

Royal Dutch Shell Plc sold North Sea Forties crude at a bigger discount to Dated Brent than yesterday. Vitol Group failed to sell Russian Urals blend after raising the offer in northwest Europe and lowering the price for the Mediterranean.

Russia plans to boost crude shipments from Novorossiysk on the Black Sea by 16 percent to the most in four months, a preliminary loading program obtained by Bloomberg News showed.

GRAINS, OILSEEDS

Wheat futures fell the most in a week on signs that Russia, the third-biggest exporter, won’t restrict shipments after a drought curbed production.

On the Chicago Board of Trade, wheat futures for December delivery declined 0.6 percent to $8.865 a bushel, the biggest drop since Sept. 18.

Corn futures for December delivery slid 0.1 percent to $7.4375 a bushel in Chicago.

Soybean futures for November delivery gained 0.1 percent to $16.115 a bushel.

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