Copper climbed to the highest in more than a month, pacing advances in commodities and spurring gains in equity markets. Industrial metals were buoyed by optimism government spending around the world will bolster economies and revive demand for raw materials. U.S. President-elect Barack Obama’s $775 billion economic stimulus plan includes tax cuts and the largest infrastructure investment since the 1950s. “We don’t think positive sentiment will be sustained,” Tobias Merath, head of commodity research at Credit Suisse Group, said in a note today. “As long as industrial and construction activity remains subdued, prices for base metals are likely to suffer further downside risks.” The Reuters/Jefferies CRB Index of 19 raw materials has jumped 5.8 percent since the start of the year, trimming 2008’s 36 percent loss, the worst annual decline for at least half a century. China, the biggest metals consumer, will allow tax-free imports of copper concentrate and other materials for processing into export-bound products to boost industrial production. Copper advanced as much as 5.3 percent to $3,570 a metric ton on the London Metal Exchange today, the highest since Dec. 2, and traded up 4.4 percent at 3:50 p.m. in Singapore. The metal has risen 11 percent in two days, the largest such gain since the end of October. Industrial metals traded on the London Metal Exchange have advanced 6-22 percent since the start of the year on speculation index funds tracking the Dow Jones-AIG Commodity Index may increase buying to reflect annual re-weightings of the benchmark. Weak Fundamentals “We’re seeing some improved sentiment as investors choose to focus on the positive,” Wang Fei, an analyst at Maike Dickson Investment Management Co., said by phone from Shanghai. Still, “economic news flow remains negative and demand compared with last year is almost certain to be weaker.” Asian shares advanced, with the regional benchmark index gaining to a two-month high. Rio Tinto Group, the world’s No. 3 mining company, surged 8.1 percent, Fortescue Metals Group Ltd., Australia’s third-largest iron-ore producer, climbed 6.1 percent, and Posco, Asia’s third-biggest steelmaker, advanced 5.9 percent. Still, crude oil fell today, extending yesterday’s decline on signs the economy in the U.S., the world’s biggest energy consumer, contracted further in November and December, pushing oil inventories higher. Higher Stockpiles U.S. crude oil stockpiles probably gained for a second week in the week ended Jan. 2, according to a Bloomberg News survey before an Energy Department report today. Orders placed with U.S. factories in November fell twice as much as forecast, signaling businesses are cutting back on investments, according to data from the Commerce Department. Gold slipped 0.2 percent to $862.09 an ounce, declining for the fourth day in five, as a dollar rally cut demand for haven assets. Bullion for immediate delivery has dropped 2.3 percent this year. Corn for March delivery lost 0.7 percent to $4.2450 a bushel, wheat fell 1.7 percent to $6.3250 a bushel, and soybeans declined 1.1 percent to $10.0475 a bushel.

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