Cotton Leads Rally as Sugar Falls Again: Commodities at Close

The Standard & Poor’s GSCI gauge of 24 commodities climbed 0.8 percent to 670.89 at 4:53 p.m. in London. The UBS Bloomberg CMCI index of 26 raw materials was up 0.5 percent at 1,601.216.

SOFT COMMODITIES

Cotton rallied, heading for the biggest monthly gain in two years, on mounting concern that output will drop in the U.S., the world’s biggest exporter. Cocoa and coffee also gained, while sugar fell. Orange juice was little changed.

Cotton for March delivery rose 1.5 percent to 82.24 cents a pound on ICE Futures U.S. in New York. Prices are up 9.4 percent since Dec. 31, heading for the biggest monthly gain since February 2011.

Also in New York, cocoa futures for March delivery rose 1.3 percent to $2,189 a metric ton, after dropping 0.6 percent yesterday. Arabica-coffee futures for March delivery were up 0.1 percent at $1.492 a pound.

Raw-sugar futures for March delivery fell 1.7 percent to 18.41 cents a pound, the ninth loss in 11 sessions.

Orange-juice futures for March delivery were unchanged at $1.1405 a pound.

Soft commodities markets: NI SOMKTS

OIL PRODUCTS

Heating oil advanced on speculation that distillate fuel inventories fell last week and as November home prices rose by the most in six years, indicating a stronger economy.

Heating oil for February delivery rose 1.18 cents, or 0.4 percent, to $3.0734 a gallon at 9:47 a.m. on the New York Mercantile Exchange. Volume was 3.1 percent below the 100-day average for the time of day. The more actively traded March contract advanced 0.81 cent to $3.0624.

The EIA is scheduled to report last week’s inventories at 10:30 a.m. tomorrow in Washington. The report will probably show that supplies of the gasoline rose 1 million barrels, according to the survey.

Gasoline for February delivery climbed 0.32 cent to $2.938 a gallon on the exchange, the ninth consecutive increase. Volume was 39 percent above the 100-day average for the time of day. March gasoline increased 0.27 cent to $2.9436 a gallon.

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

NATURAL GAS

U.S. natural gas futures fell for a sixth day as forecasts for unusually mild February weather signaled reduce demand for the heating fuel.

Natural gas for February delivery fell 5.5 cents, or 1.7 percent, to $3.234 per million British thermal units at 10:17 a.m. on the New York Mercantile Exchange after dropping to $3.207, the lowest intraday price since Jan. 11. The futures have slipped 3.5 percent this month. Trading volume was 1.7 percent above the 100-day average for the time of day.

The February gas contract expires today. The more active March futures fell 3.7 cents, or 1.1 percent, to $3.268 per million Btu.

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 emission permits dropped 3.8 percent to 4.02 euros a metric ton.

EU Carbon Emissions: NI ECBMKT

LIVESTOCK

Hog futures rose on signs of increasing export demand for U.S. pork. Cattle prices declined.

Hog futures for April settlement rose 0.4 percent to 89.375 cents a pound at 10:07 a.m. on the Chicago Mercantile Exchange. Through yesterday, the price gained 3.9 percent this month.

Cattle futures for April delivery fell 0.1 percent to $1.3325 a pound on the CME. Yesterday, the price surged 2 percent, the most for the most-active contract since July 18.

Feeder-cattle futures for March settlement dropped 0.2 percent to $1.49625 a pound.

Livestock markets: NI LVMKTS

GRAINS, OILSEEDS

Soybean futures headed for the longest rally in seven weeks and corn rose on speculation that dry, warm weather in the first 10 days of February will reduce crop prospects in Argentina, boosting demand for U.S. exports.

Soybean futures for March delivery gained 0.4 percent to $14.535 a bushel at 10:20 a.m. on the Chicago Board of Trade. The price climbed for the third straight session, the longest rally since Dec. 6.

Corn futures for March delivery rose less than 0.1 percent to $7.295 a bushel. Through yesterday, the grain jumped 4.4 percent this month after the U.S. government said domestic inventories on Dec. 1 fell to the lowest in nine years. Wheat climbed 0.6 percent to $7.8375 a bushel.

Grain markets: NI GRMKTS

PRECIOUS METALS

Gold headed for the biggest gain in two weeks on speculation that the Federal Reserve will continue U.S. stimulus measures, increasing demand for the precious metal as a store of value.

Gold futures for April delivery climbed 0.6 percent to $1,664.30 an ounce at 10:14 a.m. on the Comex in New York, heading for the biggest increase since Jan. 15. Trading volume is 95 percent higher than the average in the past 100 days for this time of day.

Silver futures for March delivery rose 1.5 percent to $31.23 an ounce in New York.

Precious metal markets: NI PCMKTS

CRUDE OIL

Oil in New York rose to a four-month high after home prices in 20 U.S. cities climbed by the most in more than six years, signaling that the country’s economic rebound is accelerating.

Crude oil for March delivery rose $1.23, or 1.3 percent, to $97.67 a barrel at 10:57 a.m. on the New York Mercantile Exchange. Futures touched $97.72, the highest intraday price since Sept. 17. The average volume of all contracts traded at that time was 43 percent above the 100-day average.

Brent crude for March settlement increased 71 cents, or 0.6 percent, to $114.19 a barrel on the London-based ICE Futures Europe exchange. The volume of all contracts traded was 27 percent above the 100-day average.

Oil markets: NI OILMARKET

BASE METALS

Copper gained in New York on signs of stronger manufacturing in China and the U.S., the world’s two biggest consumers of the metal.

Copper was up 0.6 percent at $3.685 a pound on the Comex after falling 0.3 percent earlier today. Lead, zinc, nickel, aluminum and tin rose in London.

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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