Oil Drops a Second Day as Wheat Rallies: Commodities at Close

Standard & Poor’s GSCI gauge of 24 commodities was little changed at 646.78 by 4:40 p.m. in London. The UBS Bloomberg CMCI index of 26 raw materials was 0.3 percent higher at 1,582.969.

CRUDE OIL

Oil fell for a second day as U.S. crude inventories were forecast to increase and on concern that a deal for Greece to buy back its bonds may falter.

Crude for January delivery fell 62 cents, or 0.7 percent, to $87.12 a barrel on the New York Mercantile Exchange. Prices are down 12 percent this year.

Brent for January settlement slid $1.31, or 1.2 percent, to $109.61 a barrel on the London-based ICE Futures Europe exchange.

Oil markets: NI OILMARKET

SOFT COMMODITIES

Coffee futures rose from a 29-month low on a forecast for lower output in Colombia, the world’s second-largest producer of arabica beans. Sugar gained, while cocoa, orange juice and cotton dropped.

Arabica coffee for March delivery increased 1.5 percent to $1.5115 a pound on ICE Futures U.S. in New York. Yesterday, the commodity touched $1.476, the lowest for a most-active contract since June 2010.

Raw-sugar futures for March delivery rose 0.8 percent to 19.30 cents a pound in New York.

Cocoa futures for March delivery fell 1.4 percent to $2,443 a metric ton.

Orange-juice futures for January delivery dropped 0.6 percent to $1.2665 a pound.

Cotton futures for March delivery declined 0.2 percent to 72.48 cents a pound.

Soft commodities markets: NI SOMKTS

GRAINS, OILSEEDS

Wheat rallied to a two-week high after the U.S. government said crop conditions for winter varieties were the worst in at least 27 years after a prolonged drought left fields with little soil moisture.

Wheat futures for March delivery rose 1.8 percent to $8.79 a bushel on the Chicago Board of Trade, after reaching $8.82, the highest for a most-active contract since Nov. 12. Prices through yesterday were up 32 percent this year as drought hurt crops in the U.S., Australia and Russia, three of last year’s four biggest exporters.

Grain markets: NI GRMKTS

BASE METALS

Copper futures fell for the first time in three sessions after the Organization for Economic Cooperation and Development cut economic growth forecasts and warned that a “major” global recession is a risk.

Copper futures for delivery in March fell 0.3 percent to $3.5375 a pound on the Comex in New York.

On the London Metal Exchange, copper for delivery in three months rose 0.2 percent to $7,793.75 a ton ($3.52 a pound).

Nickel, aluminum, tin, zinc and lead gained in London.

Base metals markets: NI BMMKTS

PRECIOUS METALS

Gold headed for a second consecutive decline in New York as physical demand from India, last year’s biggest buyer, remained slack and a rebounding dollar curbed demand for an alternative investment.

Gold futures for December delivery fell 0.2 percent to $1,746.50 an ounce on the Comex in New York.

Silver futures for March delivery slid 0.2 percent to $34.15 an ounce in New York, after reaching $34.37, the highest since Oct. 11.

Precious metal markets: NI PCMKTS

NATURAL GAS

Natural gas futures fluctuated in New York as mid-December weather forecasts shifted cooler, signaling increased heating demand.

Natural gas for December delivery fell 0.1 cent to $3.729 per million British thermal units on the New York Mercantile Exchange. The futures are up 5.3 percent from a year ago. Prices dropped 4.4 percent yesterday, the biggest one-day decline since Oct. 22.

U.K. natural gas: NI NUKMKT Gas market: NI GASMARKET Americas natural gas: NI AGASMARKET European natural gas: NI EGASMARKET

European Carbon Permits

European Union carbon permits for December fell 0.7 percent to 6.79 euros a ton on the ICE Futures Europe exchange.

EU Carbon Emissions: NI ECBMKT

LIVESTOCK

Cattle futures rose for the seventh time in eight sessions on renewed concern that U.S. herds will shrink in the next few months as drought curbs the amount of feed and water available for grazing animals. Hogs declined.

Cattle futures for February delivery rose 0.2 percent to $1.326 a pound on the Chicago Mercantile Exchange. Prices through yesterday were up 9 percent this year, reaching $1.32925 on Nov. 23, the highest ever for a most-active contract.

Feeder-cattle futures for January settlement slid 0.1 percent to $1.4725 a pound in Chicago.

Hog futures for February settlement declined 0.3 percent to 86.675 cents a pound on the CME, heading for the third drop in four sessions.

Livestock markets: NI LVMKTS

To contact the reporter on this story: Maria Kolesnikova in London at mkolesnikova@bloomberg.net

To contact the editor responsible for this story: John Deane at jdeane3@bloomberg.net

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