Sugar Rises as India’s Production Declines: Commodities at Close

The Standard & Poor’s GSCI Spot Index of 24 raw materials rose 0.1 percent to settle at 650.78 at 3:51 p.m. in New York, led by sugar.

The UBS Bloomberg CMCI gauge of 26 prices advanced 0.3 percent to 1,597.71.

SOFT COMMODITIES

Sugar jumped the most in two weeks on signs of declining output in India, the world’s second-biggest producer.

The Indian Sugar Mills Association said today that production of 2.33 million metric tons in October and November was down 2.5 percent from a year earlier because of crushing delays in Uttar Pradesh. The group has pegged the harvest at 24 million tons, down from 26.3 million in the season ended Sept. 30, while UBS AG has said output may be as low as 23 million tons.

On ICE Futures U.S. in New York, raw sugar for March delivery climbed 2.1 percent to 19.75 cents a pound, the biggest gain for a most-active contract since Nov. 19.

Cocoa futures for delivery in March advanced 0.8 percent to $2,519 a metric ton.

Cotton futures for March delivery added 0.1 percent to 73.98 cents a pound.

Arabica-coffee futures for delivery in March gained 0.1 percent to $1.507 a pound on ICE.

Orange-juice futures for January delivery fell 0.7 percent to $1.224 a pound.

PRECIOUS METALS

Gold rebounded from the biggest weekly drop in five months as the dollar’s decline boosted the appeal of the metal as an alternative investment.

On the Comex in New York, gold futures for February delivery rose 0.5 percent to $1,721.10 an ounce. Last week, the price tumbled 2.2 percent, the most since late June.

Silver futures for March delivery advanced 1.4 percent to $33.759 an ounce.

On the New York Mercantile Exchange, platinum futures for January delivery increased 0.6 percent to $1,613.80 an ounce.

Palladium futures for March delivery climbed 0.4 percent to $691.25 an ounce.

BASE METALS

Copper rose as signs of a revival in manufacturing boosted demand prospects in China, the biggest consumer of industrial metals.

On the Comex, copper futures for March delivery rose 0.2 percent to $3.6585 a pound.

On the London Metal Exchange, copper for delivery in three months climbed 0.1 percent to $8,005 a ton ($3.63 a pound). Aluminum, tin and lead gained, while zinc and nickel fell.

CRUDE OIL

Crude oil climbed to a two-week high after Chinese manufacturing in November expanded the most in seven months.

On the Nymex, oil futures for January delivery gained 0.2 percent to $89.09 a barrel, the highest settlement since Nov. 19.

Brent oil for January settlement fell 0.3 percent to $110.92 a barrel on the London-based ICE Futures Europe exchange.

Vitol Group sold a cargo of North Sea Forties for a higher price than the previous trade last week, while Royal Dutch Shell Plc and Total SA bid for the grade unsuccessfully.

The Caspian Pipeline Consortium will boost volumes through Black Sea ports this month, according to a final loading program obtained by Bloomberg News.

NATURAL GAS

Natural gas advanced for the first time in four sessions as forecasts showed cooler weather that may boost heating-fuel demand.

On the Nymex, gas futures for January delivery rose 0.8 percent to $3.591 per million British thermal units.

U.K. gas for next-day delivery advanced as supplies tightened following an unplanned shutdown at the Theddlethorpe receiving terminal in England.

The price increased 1.9 percent to 68.55 pence a therm at 4:48 p.m. London time. Month-ahead gas jumped 2 percent to 69.35 pence a therm. That’s equivalent to $11.16 per million Btu.

GRAINS, OILSEEDS

Soybeans rose to a three-week high and corn gained on signs that excess rain in Argentina and dry weather in Brazil will reduce yields, boosting demand prospects for supplies from the U.S., the biggest exporter.

On the Chicago Board of Trade, soybean futures for January delivery climbed 1 percent to $14.5375 a bushel. Earlier, the price reached $14.6275, the highest since Nov. 9.

Corn futures for March delivery rose 0.3 percent to $7.5475 a bushel.

Wheat futures for March delivery slid 0.3 percent to $8.6075 a bushel.

LIVESTOCK

Cattle futures rose on speculation that U.S. processors will increase animal purchases.

On the Chicago Mercantile Exchange, cattle futures for February delivery gained 0.3 percent to $1.30775 a pound.

Feeder-cattle futures for January settlement dropped less than 0.1 percent to $1.456 a pound.

Hog futures for February settlement fell 1.4 percent to 85.675 cents a pound, the biggest decline since Sept. 6.

OIL PRODUCTS

Heating oil and gasoline fell as U.S. manufacturing contracted in November and concern mounted that leaders in Washington will reach an impasse on budget talks.

On the Nymex, heating-oil futures for January dropped 0.1 percent to $3.0562 a gallon.

Gasoline futures for January delivery dropped 0.1 percent to $2.7265 a gallon.

To contact the reporter on this story: Thomas Galatola in New York at tgalatola@bloomberg.net

To contact the editor responsible for this story: Patrick McKiernan in New York at pmckiernan@bloomberg.net

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