Corn Surges as Supply Unexpectedly Drops: Commodities at Close

The Standard & Poor’s GSCI Spot Index of 24 raw materials rose 0.8 percent to settle at 665.73 at 4 p.m. in New York, led by grains.

The UBS Bloomberg CMCI index of 26 prices advanced 0.9 percent to 1,629.08.

GRAINS, OILSEEDS

Corn prices surged the most in three months after the U.S. reported an unexpected plunge in domestic inventories to an eight-year low, signaling stronger demand for the grain.

Stockpiles left from last year’s harvest in the U.S., the world’s biggest grower and exporter, totaled 988 million bushels on Sept. 1, down 12 percent from 1.128 billion a year earlier, the U.S. Department of Agriculture said today in a report. Analysts in a Bloomberg survey expected 1.145 billion, on average.

On the Chicago Board of Trade, corn futures for December delivery rose by the 40-cent limit to $7.5625 a bushel. That 5.6 percent gain was the biggest for the most-active contract since June 25.

Wheat futures for December delivery jumped 5.5 percent to $9.025 a bushel, the biggest increase since June 25. The most- active contract advanced 19 percent in the quarter.

Soybean futures for November delivery rose 1.9 percent to $16.01 a bushel, paring this week’s decline to 1.3 percent. The price fell 8.9 percent in September.

OIL PRODUCTS

Gasoline rose the most in three years as scarce available supply in the New York Harbor area forced the expiring October- delivery contract to a record premium over November.

On the New York Mercantile Exchange, the expiring October delivery gasoline futures contract jumped 6.3 percent to $3.342 a gallon, the highest settlement price since April 13. The increase was the largest since July 29, 2009. The more actively traded November contract added 0.8 percent to $2.9201 a gallon.

Heating-oil futures for October delivery rose 0.4 percent to $3.1694 a gallon.

BASE METALS

Copper rose, extending its quarterly gain amid speculation that China, the world’s biggest user, will announce more stimulus measures that spur economic growth and metal demand.

On the Comex in New York, copper futures for December delivery advanced 0.4 percent to $3.758 a pound. Prices have risen 8.7 percent this month and 7.5 percent this quarter. York. Prices have risen 8.7 percent this month.

On the London Metal Exchange, copper for delivery in three months climbed 0.4 percent to $8,205 a metric ton ($3.72 a pound). Aluminum, zinc, tin, nickel and lead also gained in London.

PRECIOUS METALS

Gold declined in New York for the second time in three days as the dollar strengthened, lowering demand for the precious metal as an alternative investment.

On the Comex, gold futures for December delivery fell 0.4 percent to $1,773.90 an ounce. Prices fell 0.2 percent this week, the first loss in six weeks.

Silver futures for December delivery dropped 0.3 percent to $34.577 an ounce. The metal is still up 25 percent this quarter, the biggest advance since the end of 2010.

On the Nymex, platinum futures for January delivery jumped 1.1 percent to $1,669.30 an ounce, extending the quarterly gain to 15 percent.

Palladium futures for December delivery gained 0.8 percent to $640.80 an ounce, extending the quarter’s gains to 9.6 percent.

CRUDE OIL

Crude oil capped the biggest quarterly increase this year on concern that escalating Middle East tension will disrupt supplies and as gasoline surged to a five-month high.

On the Nymex, oil futures for November delivery gained 0.4 percent to $92.19 a barrel. Prices climbed 8.5 percent in the third quarter, the most since Dec. 30.

Brent oil for November settlement advanced or 0.3 percent to $112.39 a barrel on the London-based ICE Futures Europe exchange.

Vitol Group sold North Sea Forties crude at the lowest price in three weeks. The company also sold Russian Urals to Glencore International Plc (GLEN) at a bigger discount to Dated Brent than the previous trade in the Mediterranean.

One Forties cargo for loading in October was delayed by 11 days, bringing total deferrals for next month to six, according to three people with knowledge of the loading program.

NATURAL GAS

Natural gas rose to a nine-month high in New York, capping a second straight quarterly gain, as concern ebbed that stockpiles will reach storage limits before the winter increases demand.

On the Nymex, gas futures for November delivery climbed 0.7 percent to $3.32 per million British thermal units, the highest settlement price since Dec. 8. The price surged 18 percent this quarter and 19 percent this month.

U.K. gas for next-month delivery advanced as forecasters said the weather will be cooler than average next week, boosting demand for the heating fuel.

Gas advanced 0.2 percent to 59.05 pence a therm at 5:20 p.m. London time. That’s equivalent to $9.53 per million Btu. A therm is 100,000 Btu.

SOFT COMMODITIES

Cotton dropped, extending the first monthly loss since May, on signs that supply will outpace demand as consumption wanes in China, the world’s biggest user.

On ICE Futures U.S. in New York, cotton for December delivery declined 1.2 percent to 70.65 cents a pound. The price dropped 8.6 percent this month.

Raw-sugar futures for March delivery rose 0.1 percent to 20.42 cents a pound.

Cocoa futures for December delivery gained 1.4 percent to $2,516 a metric ton.

Arabica-coffee futures for December delivery fell 0.5 percent to $1.735 a pound.

Orange-juice futures for November delivery retreated 1.1 percent to $1.1315 a pound.

LIVESTOCK

Hog futures rebounded from the lowest price in more than a week on signs that demand for U.S. pork is increasing amid shrinking supplies.

On the Chicago Mercantile Exchange, hog futures for December settlement rose 0.2 percent to 73.75 cents a pound after reaching 73.4 cents, the lowest since Sept. 19. The price dropped 22 percent for the quarter.

Cattle futures for December delivery fell 0.4 percent to $1.247 a pound. The commodity gained 3.5 percent for the quarter.

Feeder-cattle futures for November settlement declined 2 percent to $1.4435 a pound. Earlier, the price fell by the 3- cent exchange limit to $1.44325, the lowest since Aug. 29.

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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