Industrial Metals Rally on Budget Accord: Commodities at CloseThomas Galatola
The Standard & Poor’s GSCI Spot Index of 24 raw materials rose 0.9 percent to settle at 652.56 at 4 p.m. in New York, led by industrial metals.
The UBS Bloomberg CMCI index of 26 prices advanced 1 percent to 1,592.96.
Industrial metals rallied, leading commodities higher, as a U.S. budget agreement that averted higher taxes and spending cuts brightened the outlook for demand.
The House approved a measure skirting income-tax increases for most households in the country, the world’s second-largest metals consumer. President Barack Obama said he would sign the bill into law. Global equities advanced, and the London Metal Exchange Index, which tracks the six primary metals on the exchange, settled at 3,581.7, the highest since Sept. 14.
On the Comex in New York, copper futures for delivery in March increased 2.3 percent to $3.736 a pound, the biggest gain since Sept. 14.
On the LME, copper for delivery in three months climbed 3.5 percent to $8,209 a metric ton ($3.72 a pound).
Tin surged as much as 4.7 percent, rising to the highest since February and leading gains among the London exchange’s six
Gold futures rose to a two-week high as commodities gained after U.S. lawmakers passed a budget accord.
On the Comex, gold futures for February delivery added 0.8 percent to $1,688.80 an ounce. Earlier, the price reached $1,695.40, the highest for a most-active contract since Dec. 18.
Silver futures for March delivery surged 2.6 percent to $31.007 an ounce on the Comex, the biggest increase since Nov. 6.
On the New York Mercantile Exchange, palladium futures for March delivery rose 0.7 percent to $707.95 an ounce. Earlier, the price reached $718.85, the highest since March 2.
Crude oil rose to the highest in more than three months after U.S. lawmakers passed a bill to undo automatic tax increases and spending cuts that had threatened growth in the world’s biggest oil-consuming country.
On the Nymex, oil futures for February delivery increased 1.4 percent to $93.12 a barrel, the highest settlement since Sept. 18.
Brent oil for February settlement rose 1.2 percent to $112.47 a barrel on the London-based ICE Futures Europe exchange.
Vitol Group bought a cargo of North Sea Forties crude at the highest price in more than 11 weeks. Eni SpA and Petraco SpA failed to find a seller for Russian Urals grade.
PT Pertamina, Indonesia’s state-owned oil company,
Gasoline climbed as Congress approved a budget deal that averts spending cuts and higher taxes for most Americans that threatened the U.S. economic recovery.
On the Nymex, gasoline futures for February delivery gained 1.2 percent to $2.7951 a gallon.
Natural gas tumbled the most in five weeks on forecasts of moderating temperatures that may reduce demand for the power-plant fuel.
On the Nymex, gas futures for February delivery fell 3.5 percent to $3.233 per million British thermal units, after plunging 9 percent, the biggest drop since Sept. 11, 2009.
U.K. gas for next-day delivery fell as predictions for higher-than-average temperatures cut demand.
Gas declined 0.3 pence, or 0.5 percent, to 61.8 pence a therm at 3:40 p.m. London time. Gas for February added 0.2
Sugar advanced to an almost one-month high on speculation that demand for commodities will rise after U.S. lawmakers reached a budget deal.
On ICE Futures U.S. in New York, raw sugar for March delivery climbed 0.9 percent to 19.69 cents a pound after touching 19.75 cents, the highest for a most-active contract since Dec. 4.
Arabica-coffee futures for March delivery rose 3.9 percent to $1.494 a pound.
Cocoa futures for March delivery advanced 1 percent to close at $2,259 a metric ton, capping the first increase since Dec. 14.
Cotton futures for March delivery added 0.3 percent to settle at 75.36 cents a pound.
Wheat futures fell to a six-month low on mounting concern that export demand is slowing for supplies from the U.S., the world’s biggest shipper.
On the Chicago Board of Trade, wheat futures for March delivery fell 2.9 percent to $7.5525 a bushel, the biggest decline since Dec. 11, after touching $7.525, the lowest for a most-active contract since June 29.
Soybean futures for March delivery dropped 1.2 percent to $13.9225 a bushel.
Hog futures gained for the first time in a week on improved prospects for U.S. pork demand.
On the Chicago Mercantile Exchange, hog futures for February settlement climbed 0.5 percent to 86.175 cents a pound.
Cattle futures for February delivery added 0.1 percent to $1.32375 a pound.