Gold Oil Rise; Copper Drops for Second Day: Commodities at Close

The Standard & Poor’s GSCI gauge of 24 commodities rose 0.6 percent to 652.11 at 4:20 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials gained 0.5 percent to 1,621.866.

CRUDE OIL

Oil rose from a two-month low in New York as the euro strengthened against the dollar before a meeting of the European Central Bank, bolstering the appeal of commodities to investors.

Crude for November delivery gained as much as 62 cents to $88.76 a barrel on the New York Mercantile Exchange and was at $88.60 at 8:46 a.m. London time. Futures dropped to $88.14 yesterday, the lowest settlement since Aug. 2. Prices are down 10 percent this year.

OIL PRODUCTS

The premium of gasoil, or diesel, to Asian marker Dubai crude rose $2.50 to $21.62 a barrel at 10:37 a.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. This crack spread, a measure of processing profit, widened the most since March last year. Gasoil swaps for November fell 15 cents to $126.40 a barrel, PVM said.

High-sulfur fuel oil climbed 76 cents to $3.48 a barrel below Dubai crude at 10:37 a.m. Singapore time, according to PVM. The discount narrowed for the third time in four days, signaling reduced losses for refiners making residual products. Fuel oil swaps for November declined $12, or 1.8 percent, to $643.25 a metric ton, PVM data showed. That’s the lowest since Aug. 3.

Naphtha’s premium to London-traded Brent crude futures was down $23.33 at $88.21 a ton at 11:35 a.m. Singapore time, according to data compiled by Bloomberg. The difference, also known as the crack spread, narrowed for the third day this week.

BASE METALS

Copper declined for a second day on concerns that signs of further economic slowdown from Asia to Europe will dim demand for industrial metals.

PRECIOUS METALS

Gold rose for a second day as assets in exchange-traded products backed by the metal climbed to a record amid speculation that stimulus by the world’s central banks will boost demand for an inflation hedge.

Spot gold gained as much as 0.3 percent to $1,783.45 an ounce and traded at $1,783.43 as of 2:47 p.m. in Singapore. Bullion-backed holdings in ETPs increased 4.1 metric tons to an all-time high 2,554.335 tons as of Oct. 3, according to data tracked by Bloomberg.

GRAINS, OILSEEDS, SOFT COMMODITIES

Soybeans gained as a 16 percent slide from last month’s record to a three-month low yesterday probably attracted importers on concern the worst U.S. drought in half a century will cut its reserves to the lowest level in nine years.

The November-delivery contract rose as much as 0.7 percent to $15.425 a bushel on the Chicago Board of Trade and was at $15.38 at 1:37 p.m. Singapore time. Futures, that surged to an all-time high of $17.89 a bushel on Sept. 4, fell yesterday to as low as to $15.04, the cheapest price since July 5.

Corn for December delivery fell 0.2 percent to $7.555 a bushel, while wheat for delivery in the same month lost 0.6 percent to $8.675 a bushel.

Palm oil climbed for a second day as a proposal by Malaysia’s Plantations Industries and Commodities Minister to cut export taxes could increase shipments and lower stockpiles in the country, the largest producer after Indonesia.

The December-delivery contract rose as much as 2.3 percent to 2,404 ringgit ($786) a metric ton on the Malaysia Derivatives Exchange, and was at 2,355 ringgit by the 12:30 p.m. break. Futures reversed an earlier 1.3 percent decline and are set for a 7.5 percent drop this week.

Rubber advanced as the Japanese currency weakened against the dollar, raising the appeal of yen-denominated contracts, amid speculation the Bank of Japan (8301) may take further measures after expanding stimulus last month.

To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net

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