Oil, Gas, Copper Decline; Gold, Corn Gain: Commodities at Close

The Standard & Poor’s GSCI gauge of 24 commodities added 0.2 percent to 631.25 at 5:35 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials rose 0.2 percent to 1535.305.

CRUDE OIL

Oil traded near its lowest in a week in New York on speculation that an increase in U.S. crude stockpiles signaled slowing demand in the world’s biggest consumer of the commodity.

Crude for September delivery decreased as much as 70 cents to $87.80 a barrel in electronic trading on the New York Mercantile Exchange. It was at $88.25 at 9:05 a.m. London time. Crude fell yesterday as low as $87.43, its weakest since July 17. Prices are down 11 percent this year.

Brent oil for September settlement on the London-based ICE Futures Europe exchange fell as much as 65 cents, or 0.6 percent, to $102.77 a barrel. The European benchmark crude was

NATURAL GAS

Natural-gas futures declined for the first time in six days amid signs that price gains to a seven-month high may have been excessive.

Gas for August delivery declined 3.5 cents to $3.152 per million British thermal units on the New York Mercantile

OIL PRODUCTS

The premium of gasoil to Dubai crude fell 4 cents to $18.18 a barrel, PVM data showed. The spread narrowed for the first day since July 13.

The premium of gasoil to Dubai crude rose 37 cents, or 2.1 percent, to $18.10 a barrel at 10:32 a.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. The spread has declined from $18.22 on July 23, the widest since Feb. 8.

Singapore gasoil swaps for August dropped 25 cents, or 0.2 percent, to $117.50 a barrel, the lowest since July 16.

Japan naphtha’s premium to London-traded Brent crude futures fell $6.70, or 11 percent, to $55.14 a ton as of 11:28 a.m. Singapore time, according to Bloomberg calculations based on PVM data. This spread declined for a third day.

Singapore fuel oil’s discount to Dubai crude narrowed by 50 cents to $1.49 a barrel, PVM data showed. Refiners’ margins improved to the best since July 5.

PRECIOUS METALS

Gold gained for a second day in London as a weaker dollar spurred demand for the metal as an alternative investment.

Bullion for immediate delivery rose 0.5 percent to $1,589 an ounce by 10:02 a.m. in London. Prices are up 1.6 percent this year. December-delivery futures were 0.8 percent higher at $1,592.70 on the Comex in New York.

Silver for immediate delivery rose 0.2 percent to $27.0275 an ounce. Palladium gained 0.4 percent to $565.20 an ounce after dropping to $556.21 yesterday, the lowest price since October.

BASE METALS

Copper dropped to the lowest level in almost a month on concerns that Europe’s crisis is worsening and a slowing Chinese economy may weaken demand.

Three-month copper fell as much as 1 percent to $7,344.25 a metric ton, the lowest price since June 27, on the London Metal

GRAINS, OILSEEDS, SOFT COMMODITIES

Corn gained, erasing an earlier loss, on concern rains forecast in the next two weeks in parts of the U.S. may fail to reverse crop losses caused by the worst Midwest drought in at least a generation.

Corn for December delivery gained as much as 0.8 percent to $7.8475 a bushel on the Chicago Board of Trade and was at $7.8375 by 2:15 p.m. Singapore time, erasing an earlier loss of 0.9 percent. Futures jumped to a record $8 on July 23 as U.S. crop conditions worsened.

Soybeans for November delivery dropped as much as 2.1 percent to $15.36 a bushel before trading at $15.6625. Wheat for September gained 0.8 percent to $8.8575 a bushel, reversing a 1.9 percent loss.

September-delivery wheat declined as much as 0.4 percent to $8.7525 a bushel, erasing an earlier 0.5 percent gain.

Palm oil advanced for the first time in four days on speculation that rains forecast in the U.S. may fail to ease stress on drought-hit soybean crops, raising concern global oilseed supplies will dwindle.

The October-delivery contract gained as much as 0.8 percent to 2,950 ringgit ($927) a metric ton on the Malaysia Derivatives Exchange, and was at 2,944 ringgit by the midday break. Futures lost 3.9 percent in three straight sessions through yesterday on concern that slowing growth in China and Europe’s debt crisis will crimp demand for commodities.

Rubber closed unchanged, snapping a three-day losing streak, amid speculation a decline to the lowest level in almost 33 months may lure buyers from China, the world’s biggest consumer of the commodity used in tires.

The December-delivery contract settled at 227 yen a kilogram ($2,903 a metric ton) after gaining as much as 1.3 percent to 230 yen on the Tokyo Commodity Exchange. The most-

Before it's here, it's on the Bloomberg Terminal. LEARN MORE