Oil Falls Second Day as Wheat Surges: Commodities at Close

The Standard & Poor’s GSCI gauge of 24 commodities fell 0.2 percent to 645.96 at 3:48 p.m. The UBS Bloomberg CMCI index of 26 raw materials was up 0.3 percent at 1,583.084.

CRUDE OIL

Oil fell for a second day as U.S. crude inventories were forecast to increase and as Senate Majority Leader Harry Reid said budget talks in Washington have made little progress.

Crude oil for January delivery dropped 56 cents to settle at $87.18 a barrel on the New York Mercantile Exchange. Prices are down 12 percent this year.

Brent oil for January settlement declined $1.05, or 0.9 percent, to end the session at $109.87 a barrel on the London- based ICE Futures Europe exchange.

Oil markets: NI CRMKTS

NATURAL GAS

Natural gas futures advanced in New York for the first time in three days as mid-December weather forecasts turned cooler, signaling increased heating demand.

Natural gas for December delivery rose 3.9 cents to settle at $3.769 per million British thermal units on the Nymex. The futures are up 6.4 percent from a year ago. Prices dropped 4.4 percent yesterday, the biggest one-day decline since Oct. 22.

U.S. natural gas: NI NUSMKT

U.K. natural gas: NI NUKMKT

OIL PRODUCTS

Heating oil slid on speculation that refinery restarts will increase inventories and as gasoil fell in Europe, reducing the value of U.S. exports.

December-delivery heating oil fell 3.71 cents to $3.0094 a gallon on the Nymex, the lowest settlement price since Nov. 16.

Gasoline for December delivery rose 0.58 cent to settle at $2.7321 a gallon on the exchange, the first gain in three days.

The average nationwide cost for regular gasoline fell 0.4 cent to $3.419 a gallon, AAA said today on its website. The pump price reached a 2012 high of $3.936 on April 4.

U.S. oil product futures: NI OPFMKT

Oil Products Europe: NI OPEMKT

Gasoline: NI GASOLINE

Heating oil: NI HEATOIL

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 also gained, while cocoa, orange juice and cotton dropped.

Arabica-coffee for March delivery increased 0.2 percent to settle at $1.4915 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 0.4 percent to 19.23 cents a pound in New York.

Cocoa futures for March delivery fell 1.3 percent to $2,447 a metric ton.

Orange-juice futures for January delivery dropped 1.1 percent to $1.2605 a pound, ending a four-session rally.

Cotton futures for March delivery declined 0.1 percent to 72.52 cents a pound.

Soft commodities markets: NI SOMKTS

GRAINS, OILSEEDS

Soybeans rose the most in five weeks as demand for exports climbed from the U.S., the world’s biggest shipper. Corn gained for the third straight session.

Soybean futures for January delivery rose 1.7 percent to close at $14.4925 a bushel on the Chicago Board of Trade, the biggest gain for a most-active contract since Oct. 18. The price has advanced 20 percent this year.

Corn futures for March delivery climbed 1.7 percent to $7.64 a bushel in Chicago. The price, up 2.5 percent in three sessions, has advanced 18 percent this year.

Wheat futures for March delivery rose 2.9 percent to settle at $8.885 a bushel in Chicago, the biggest gain for a most- active contract since Sept. 28. The price has surged 36 percent this year after drought cut output in countries including Australia and Russia.

Grain markets: NI GRMKTS

BASE METALS

Copper gained for a third straight session as U.S. consumer confidence rose to a four-year high and home prices increased by the most since 2010, signaling higher demand for the metal.

Copper futures for delivery in March climbed 0.1 percent to settle at $3.551 a pound on the Comex in New York. Prices gained 1.2 percent in the previous two sessions.

On the London Metal Exchange, copper for delivery in three months rose 0.3 percent to $7,807 metric a ton ($3.54 a pound).

Nickel, aluminum, tin, zinc and lead were also higher in London.

Base metals markets: NI BMMKTS

PRECIOUS METALS

Gold fell the most in a week as physical demand from India, last year’s biggest buyer, remained slack and a rebounding dollar eroded the appeal of the metal as an alternative investment.

Gold futures for December delivery fell 0.4 percent to settle at $1,742.30 an ounce on the Comex, the biggest decline since Nov. 20. Prices dropped 0.1 percent yesterday, after reaching $1,755 on Nov. 23, the highest since Oct. 17.

Silver futures for March delivery slid 0.5 percent to $34.074 an ounce in New York, after reaching $34.37, the highest since Oct. 11.

Platinum futures for January delivery rose 0.5 percent to settle at $1,618.50 an ounce on the Nymex. Palladium futures for December delivery climbed 1.1 percent to $668.20 an ounce.

Precious metal markets: NI PCMKTS

LIVESTOCK

Cattle futures declined for a second day on speculation that the highest prices on record will deter animal purchases by U.S. meatpackers.

Cattle futures for February delivery fell 0.1 percent to settle at $1.32325 a pound on the Chicago Mercantile Exchange. Prices still are up 9 percent this year.

Feeder-cattle futures for January settlement slid 0.3 percent to $1.46925 a pound in Chicago.

Hog futures for February settlement declined 0.3 percent to 86.725 cents a pound on the CME, the third drop in four sessions.

Livestock markets: NI LVMKTS

To contact the reporter on this story: Mario Parker in Chicago at mparker22@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

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