Raw Materials Post Longest Skid Since June: Commodities at Close

The Standard & Poor’s GSCI Spot Index of 24 raw materials fell 0.4 percent to settle at 636.75 at 4 p.m. in New York. The measure dropped for the fourth straight session, the longest slump since mid-June.

The UBS Bloomberg CMCI gauge of 26 prices declined 0.2 percent to 1,566.89.

SOFT COMMODITIES

Cotton fell, capping the biggest two-day slump since mid- August, on concern that supplies will remain ample as the slumping European economy crimps demand.

In the year ending July 31, production will exceed consumption by a record 79.11 million bales, up 14 percent from the surplus a year earlier, the U.S. Department of Agriculture said this month. In October, euro-area services and manufacturing output contracted more than economists forecast, and German business confidence unexpectedly dropped.

On ICE Futures U.S. in New York, cotton for December delivery slid 2.2 percent to 72.67 cents a pound. In two days, the price dropped 5.5 percent, the most since Aug. 13. A bale weighs 480 pounds, or 218 kilograms.

Cocoa futures for December delivery tumbled 4 percent to $2,399 a metric ton, the biggest drop for a most-active contract since July 12.

Arabica-coffee futures for December delivery fell 0.7 percent to $1.598 a pound.

Orange-juice futures for January delivery declined 0.2 percent to $1.108 a pound.

Raw-sugar futures for March delivery advanced 0.2 percent to 19.68 cents a pound.

PRECIOUS METALS

Gold fell below $1,700 an ounce to a six-week low as European Central Bank President Mario Draghi said his plan to buy government bonds “will not lead to inflation.”

On the Comex in New York, gold futures for December delivery traded at $1,702.60 at 4:47 p.m. The metal settled at $1,701.60 today, down 0.5 percent. After the close, the price touched $1,698.70, the lowest for a most-active contract since Sept. 7.

Silver futures for December delivery slid 0.5 percent to $31.62 an ounce.

On the New York Mercantile Exchange, platinum futures for January delivery dropped 0.8 percent to $1,562.70 an ounce. The metal declined for the fifth straight session, the longest slump since Aug. 30.

Palladium futures for December delivery slipped 0.2 percent to $592.75 an ounce. The price dropped for the fifth straight session, the longest slump since May 9.

BASE METALS

Copper futures fell, capping the longest slide since August, as a bigger-than-expected contraction in Euro-area services and manufacturing added to concern that metals demand will slow.

On the Comex, copper futures for December delivery declined less than 1 percent to $3.568 a pound. The metal dropped for the fifth straight session, the longest slump since Aug. 30. Earlier, the price touched $3.5475, the lowest since Sept. 7.

On the London Metal Exchange, copper for delivery in three months fell 0.2 percent to $7,817 a ton ($3.55 a pound). Nickel, zinc and tin advanced, while aluminum and lead declined.

NATURAL GAS

Natural gas dropped for the second time in three days on speculation that U.S. government data will show a bigger-than- normal stockpile increase for last week.

On the Nymex, gas futures for November delivery fell 2.4 percent to $3.45 per million British thermal units.

U.K. gas for same-day delivery declined, snapping a five- session advance, as imports from Belgium rose to the highest rate in 21 months.

The price dropped 3.6 percent to 66.5 pence a therm at 4:16 p.m. London time after reaching 69 pence yesterday, the highest since February. Month-ahead gas slid 2 percent to 67.15 pence a therm. That’s equivalent to $10.76 per million Btu.

CRUDE OIL

Crude oil dropped, capping the longest slump in five months, after U.S. inventories rose more than expected and fuel demand dropped.

On the Nymex, oil futures for December delivery fell 1.1 percent to $85.73 a barrel. The price dropped for the fifth straight session, the longest skid since May 18.

Brent oil for December settlement traded in London fell 0.4 percent to $107.85 a barrel.

Trafigura Beheer BV failed to buy North Sea Forties blend at the lowest price in almost one month. Vitol Group sold Russian Urals in the Mediterranean at a bigger discount to Dated Brent.

Eight Nigerian cargoes for loading in November remain unsold, said three traders involved in the region’s market. Iraq plans to increase exports of its Kirkuk grade in November from the Turkish port of Ceyhan to 24 lots, four more than this month, a loading program obtained by Bloomberg News showed.

OIL PRODUCTS

Gasoline fell, extending the longest slump since the start of New York futures trading in 1986, as fuel supplies surged to the highest in almost two months.

On the Nymex, gasoline futures slipped 0.1 percent to $2.603 a gallon. The price dropped for the 10th straight session.

Heating-oil futures for November delivery slid 0.1 percent to $3.0394 a gallon.

GRAINS, OILSEEDS

Wheat rose to the highest in three weeks as dry weather curbs crop prospects in Australia, the world’s second-biggest exporter, and Argentina.

On the Chicago Board of Trade, wheat futures for December delivery climbed 1.8 percent to $8.84 a bushel, the biggest advance since Oct. 11. Earlier, the grain reached $8.95, the highest since Oct. 1.

Soybean futures for January delivery gained 1.1 percent to $15.7225 a bushel after reaching $15.77, the highest since Oct. 1.

Corn futures for December delivery declined 0.2 percent to $7.545 a bushel, the third straight drop.

LIVESTOCK

Hogs gained for the first time this week as animal weights declined in the U.S., signaling tighter supplies of pork.

On the Chicago Mercantile Exchange, hog futures for December settlement advanced 0.2 percent to 78.25 cents a pound, the first gain since Oct. 19.

Cattle futures for December delivery rose 0.2 percent to $1.27075 a pound.

Feeder-cattle futures for January settlement increased 0.3 percent to $1.49125 a pound.

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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