Cotton Leads Gains as Emissions Tumble 40%: Commodities at Close

The Standard & Poor’s GSCI gauge of 24 commodities rose 0.4 percent to 664.53 at 4:54 p.m. in London. The UBS Bloomberg CMCI index of 26 raw materials was down less than 0.1 percent at 1,595.593.

SOFT COMMODITIES

Cotton futures rose for the seventh straight session, the longest rally in almost two years, on bets that production will drop in the U.S. as demand rebounds in China. Sugar, cocoa and orange juice declined.

Cotton for March delivery rose 1.5 percent to 81.66 cents a pound on ICE Futures in New York, after reaching 81.82 cents, the highest for a most-active contract since May 10. Prices rallied 6.6 percent in the six previous session.

Raw-sugar futures for March delivery fell 0.5 percent to 18.4 cents a pound on ICE, heading for the seventh decline in eight sessions.

Cocoa futures for March delivery fell 1.4 percent to $2,185 a metric ton in New York, after sinking to $2,178, the lowest for a most-active contract since July 18.

Orange-juice futures for March delivery slumped 1.3 percent to $1.141 a pound on ICE.

Soft commodities markets: NI SOMKTS

European Carbon Permits

European Union carbon prices plunged a record 40 percent after a panel in the 27-nation bloc’s parliament recommended rejection of a strategy to strengthen the world’s biggest cap- and-trade market.

European Union emission permits pared losses and were down 4.3 percent at 4.33 euros a metric ton.

EU Carbon Emissions: NI ECBMKT

LIVESTOCK

Hog futures rallied to the highest price since July on speculation that cold weather is disrupting the movement of animals. Cattle were little changed.

Hog futures for April settlement rose 1.3 percent to 89.125 cents a pound at 9:53 a.m. on the Chicago Mercantile Exchange, heading for the biggest gain since Dec. 19. Earlier, the price reached 89.5 cents, the highest for a most-active contract since July 9.

Cattle futures for April delivery were down less than 0.1 percent at $1.30425 a pound in Chicago. Prices through yesterday had fallen 1.4 percent this month.

Feeder-cattle futures for March settlement rose 0.6 percent to $1.47975 a pound on the CME.

Livestock markets: NI LVMKTS

OIL PRODUCTS

Gasoline rose after a government report showed inventories dropped.

Gasoline for February delivery climbed 0.4 percent to $2.8448 a gallon.

Oil Products Europe: NI OPEMKT Gasoline: NI GASOLINE Heating oil: NI HEATOIL

GRAINS, OILSEEDS

Soybeans and corn fell for a second day in Chicago on speculation that rain in South America will ease dry conditions threatening supply of the crops.

Soybeans for delivery in March slid 0.9 percent to $14.235 a bushel at 7:01 a.m. on the Chicago Board of Trade, heading for a fourth decline in five sessions. Corn for the same delivery month dropped 0.6 percent to $7.1625 a bushel and reached $7.1575, the lowest since Jan. 14 for a most-active contract.

Wheat for delivery in March retreated 0.5 percent to $7.705 a bushel. In Paris, milling wheat for the same delivery month fell 0.9 percent to 249.25 euros ($332.13) a ton on NYSE Liffe.

Grain markets: NI GRMKTS

NATURAL GAS

Natural gas futures declined for a third day in New York after a government report showed that U.S. stockpiles fell by less than expected last week.

Natural gas for February delivery fell 2.9 cents, or 0.8 percent, to $3.525 per million British thermal units at 10:47 a.m. on the Nymex. Gas traded at $3.579 before the storage number was released at 10:30 a.m. in Washington. Trading volume was up 42 percent from the 100-day average. The futures have risen 38 percent from a year ago.

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

PRECIOUS METALS

Gold headed for the biggest decline in almost two weeks after a drop in U.S. jobless claims signaled an improving outlook for economic growth and curbed demand for the precious metal as a haven asset.

Gold futures for February delivery fell 0.8 percent to $1,673.30 an ounce at 8:50 a.m. on the Comex in New York, heading for the biggest loss since Jan. 11. Prices have erased this month’s gains.

Trading volume in New York was 87 percent higher than the average in the past 100 days for this time of day.

Precious metal markets: NI PCMKTS

CRUDE OIL

Oil climbed after reports pointed to accelerating global growth and as the spread between West Texas Intermediate crude in the U.S. and London’s Brent narrowed on speculation the Seaway pipeline will soon resume full shipments.

Crude oil for March delivery gained $1.08, or 1.1 percent, to $96.31 a barrel at 11:04 a.m. on the New York Mercantile Exchange. The contract traded at $96.14 before the release of the inventory report at 11 a.m. in Washington. Volume was 56 percent above the 100-day average.

Brent oil for March settlement gained 65 cents to $113.45 a barrel on the London-based ICE Futures Europe exchange. Volume was 29 percent above the 100-day average.

Oil markets: NI OILMARKET

BASE METALS

Copper rose in New York for the fourth time in five sessions on signs that economic recoveries are gaining traction in the U.S. and China, the world’s biggest metals consumers.

Copper futures for delivery in March climbed 0.1 percent to $3.6895 a pound at 11:23 a.m. on the Comex in New York. Prices fell as much as 0.6 percent earlier after Codelco, the biggest producer of the metal, predicted a surplus.

On the London Metal Exchange, copper for delivery in three months increased 0.1 percent to $8,108 a metric ton ($3.68 a pound).

Aluminum, lead, zinc and tin also gained in London. Nickel fell.

Base metals markets: NI BMMKTS

To contact the reporter on this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

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