Corn, Rubber Climb; Palm Oil Prices Drop: Commodities at Close
Oil fluctuated after a industry report showed stockpiles rising in the U.S., the world’s biggest crude consumer, and as OPEC delegates gathered in Vienna to decide the group’s production quota.
Crude for January delivery was at $85.90 a barrel, up 11 cents, in electronic trading on the New York Mercantile Exchange at 3:12 p.m. Singapore time. The contract gained 23 cents to $85.79 yesterday, the highest close since Dec. 7. Prices are down 13 percent this year.
Asia’s naphtha crack spread shrank, signaling reduced profit for refiners making the petrochemical and naphtha feedstock. Gasoil swaps snap a six-day losing streak.
• Light Distillates • Naphtha’s premium to London Brent crude narrows 21 cents to $101.04/ton at 11:45 a.m. Singapore time, according to data compiled by Bloomberg • Crack spread narrowest since Nov. 29 • January naphtha swaps up $1.75, or 0.2%, at $916.75/ton, according to PVM Oil Associates Ltd. • Gasoline reforming margin yesterday rebounded 85 cents to close at $12.61/bbl, data compiled by Bloomberg show
• Middle Distillates • Gasoil’s premium to Dubai crude up 51 cents at $19.88/bbl at 10:11 a.m. Singapore time, according to PVM • Crack spread rises most since Dec. 3 • January gasoil swaps up 50 cents, or 0.4%, at $123.05/bbl • Jet fuel regrade down 5 cents at minus 40 cents/bbl
• Fuel Oil • High-sulfur fuel oil’s discount to Dubai crude narrows 1 cent to $6.48/bbl at 10:11 a.m. Singapore time, according to PVM • Crack spread gains seventh time in eight days • January HSFO swaps unchanged after rising to $614/ton • Viscosity spread up 25 cents at $11.25/ton, first increase in six days
Copper traded near a seven-week high before U.S. Federal Reserve policy makers decide whether to continue with monetary stimulus as they end a two-day meeting.
Gold traded near a one-week high in London on speculation the Federal Reserve will announce an expansion of asset purchases.
GRAINS, OILSEEDS, SOFT COMMODITIES
Corn gained after the U.S. Department of Agriculture predicted that global inventories as a share of demand will shrink to the smallest in 39 years. Wheat rebounded, while soybeans slipped.
Corn for March delivery gained as much as 0.5 percent to $7.3175 a bushel on the Chicago Board of Trade, before trading at $7.31 at 9:25 a.m. Singapore time.
Wheat for delivery in the March rose as much as 0.5 percent to $8.255 a bushel, after slumping as much as 3.9 percent yesterday to the lowest price for the most-active contract since July 11. It last traded at $8.235 a bushel. Soybeans for January delivery slipped 0.6 percent to $14.6275 a bushel.
The contract for February delivery fell as much as 2.7 percent to 2,229 ringgit ($729) a metric ton on the Malaysia Derivatives Exchange, the lowest price for the most-active contract since Nov. 12, before trading at 2,248 ringgit at 3:40 p.m. in Kuala Lumpur. Futures are set for a 29 percent drop in 2012, the worst year since the financial crisis in 2008.
Rubber advanced to a two-month high as the biggest producing countries agreed to cut supplies to bolster prices and on optimism that the U.S. Federal Reserve will step up monetary easing, lifting demand for commodities.
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