Cotton Snaps Longest Rally in Two Years: Commodities at Close

The Standard & Poor’s GSCI gauge of 24 commodities dropped 0.2 percent to 662.75. The UBS Bloomberg CMCI index of 26 raw materials was down 0.3 percent at 1,590.557.

SOFT COMMODITIES

Cotton fell for the first time in eight sessions after the government reported slowing export from the U.S., the world’s top shipper. Sugar and cocoa also dropped, while orange juice and coffee gained.

In the week ended Jan. 17, exports of upland cotton dropped 37 percent to 213,700 running bales from a week earlier, the U.S. Department of Agriculture said today. Prices climbed 9.8 percent in the past seven sessions, the longest rally in almost two years, on expectations of higher demand from China, the biggest consumer.

Cotton for March delivery dropped 2.9 percent to settle at 80.52 cents a pound on ICE Futures in New York, the biggest loss since Oct. 23.

Also in New York, raw-sugar futures for delivery in March slumped 0.6 percent to 18.38 cents a pound, the eighth loss in nine sessions.

Cocoa futures for March delivery fell 1 percent to $2,173 a metric ton on ICE, the fourth loss in five sessions. In the 12 months ended Sept. 30, global stockpiles climbed 138,000 tons to 1.838 million tons, the International Cocoa Organization said.

Orange-juice futures for March delivery climbed 0.2 percent to $1.134 a pound in New York, while arabica-coffee futures for March delivery gained 1.2 percent to $1.483 a pound.

Soft commodities markets: NI SOMKTS

GRAINS, OILSEEDS

Wheat and soybean futures gained after a government report showed export demand increased from the U.S., the world’s biggest shipper. Corn fell.

Wheat futures for March delivery climbed 1 percent to close at $7.765 a bushel on the Chicago Board of Trade, ending a three-session slump. The grain fell 1.9 percent this week.

Soybean futures for March delivery rose 0.4 percent to $14.41 a bushel. This week, the oilseed advanced 0.8 percent, the third straight gain, after the USDA said on Jan. 11 that inventories dropped to a nine-year low.

Corn futures for March delivery fell 0.5 percent to $7.2075 a bushel. This week, the grain dropped 0.9 percent on speculation that precipitation will boost crops in South America.

Grain markets: NI GRMKTS

OIL PRODUCTS

Heating oil fell for the first time in seven days after U.S. inventories rose and forecasters predicted temperatures in the East may climb next week, reducing heating fuel demand.

Heating oil for February delivery declined 2.96 cents to settle at $3.0568 a gallon on the New York Mercantile Exchange. Prices rose 0.1 percent this week. The more actively traded March contract fell 2.75 cents to $3.0489.

Gasoline for February delivery gained 1.25 cents to $2.8754 a gallon on the Nymex, the highest settlement since Oct. 12. Futures rose 2.8 percent this week. March gasoline gained 1.31 cents to $2.8898 a gallon.

Gasoline: NI GASOLINE

Heating oil: NI HEATOIL

BASE METALS

Copper slumped the most in a week as new-home sales in the U.S. unexpectedly fell, tempering the demand outlook for the metal used in pipes and wiring.

Copper futures for delivery in March slid 0.7 percent to settle at $3.652 a pound on the Comex in New York, the biggest loss since Jan. 16.

On the London Metal Exchange, copper for delivery in three months declined 0.8 percent to $8,030 a ton ($3.64 a pound).

Zinc, nickel, lead and aluminum were also lower in London. Tin advanced.

Base metals markets: NI BMMKTS

PRECIOUS METALS

Gold futures dropped to a two-week low as Germany’s business confidence rose more than forecast, bolstering the outlook for Europe’s largest economy and eroding the appeal of the precious metal as a haven.

Gold futures for February delivery fell 0.8 percent to settle at $1,656.60 an ounce on the Comex in New York, the third straight decline. Earlier, the price touched $1,655, the lowest since Jan. 11. This week, the metal dropped 1.8 percent.

Silver futures for March delivery fell 1.6 percent to $31.206 an ounce on the Comex. This week, the price dropped 2.3 percent.

On the Nymex, platinum futures for April delivery rose 0.7 percent to $1,694.90 an ounce. This week, the price climbed 1.2 percent, the fourth straight gain and the longest rally in almost a year.

Palladium futures for March delivery rose 2 percent to $741 an ounce on the Nymex. This week, the price gained 2.5 percent the third straight advance.

Precious metal markets: NI PCMKTS

LIVESTOCK

Cattle rose for the first time in three days on signs of increasing demand for U.S. beef. Hog prices fell.

Cattle futures for April delivery climbed 0.3 percent to settle at $1.3075 a pound on the Chicago Mercantile Exchange. Prices are down 1.2 percent this month.

Feeder-cattle futures for March settlement closed unchanged at $1.4795 a pound on the CME.

Hog futures for April settlement slid 0.8 percent to close at 88.925 cents a pound in Chicago. Prices are up 3.7 percent this month.

Livestock markets: NI LVMKTS

NATURAL GAS

Natural gas futures capped a weekly decline in New York amid speculation that a mix of cold and mild weather next week will do little to reduce a supply surplus.

Natural gas for February delivery slipped 0.2 cent to $3.444 per million British thermal units on the Nymex, the lowest settlement price since Jan. 16. The futures fell 3.4 percent this week, the first drop in three weeks, after rising to $3.645 on Jan. 22, the highest price since Dec. 7. Gas is up 26 percent from a year ago.

Gas market: NI GASMARKET

CRUDE OIL

Oil completed a seventh weekly gain in New York, the longest run of advances in almost four years, on speculation that stronger economic growth will boost demand.

West Texas Intermediate for March delivery slid 7 cents to settle at $95.88 a barrel on the Nymex, ending the week with a 0.3 percent gain. Futures have advanced 12 percent in the seven- week winning streak, the longest since April 2009.

Brent for March delivery settled unchanged at $113.28 a barrel on the London-based ICE Futures Europe exchange.

Oil markets: NI OILMARKET

To contact the reporter on this story: Lynn Doan in San Francisco at ldoan6@bloomberg.net

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

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