BLBG:Oil Falls; Gold Drops on Federal Reserve: Commodities at Close
The Standard & Poor’s GSCI gauge of 24 commodities fell 0.7 percent to 692.79 at 5:23 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials declined 0.8 percent to 1,606.7983.
CRUDE OIL
Oil fell for a second day in New York on signs that U.S. crude stockpiles rose and speculation the Federal Reserve may refrain from more monetary stimulus to boost the U.S. economy.
Oil for May delivery declined as much as 49 cents to $103.52 a barrel in electronic trading on the New York Mercantile Exchange. It was at $103.57 at 2:26 p.m. Singapore time. The contract yesterday lost $1.22, or 1.2 percent, to $104.01. Prices are 4.8 percent higher this year.
NATURAL GAS
Natural gas gained for a second day in New York on forecasts for cold Midwest weather next week that may boost heating-fuel demand.
OIL PRODUCTS
Japan naphtha swaps for May declined $1, or 0.1 percent, to $1,053 a ton, at 10 a.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. Naphtha swaps were at a premium of $114.33 a ton to London-traded Brent crude futures from $113.30 a ton yesterday.
Singapore gasoil’s premium to Dubai crude fell 21 cents, or 1.3 percent, to $15.70 a barrel, PVM data showed. The product’s swaps for May were unchanged at $136.70 a barrel.
PRECIOUS METALS
Gold fell for a second day in London, extending the biggest drop in four weeks, as the dollar strengthened on signs the Federal Reserve may refrain from providing more stimulus for the U.S. economy.
The Fed plans to hold off from more monetary accommodation unless the economic expansion falters or price growth is below its target, minutes of a March 13 policy meeting showed yesterday. The dollar advanced against the euro for a third day today. Bullion and the greenback tend to move inversely.
Bullion for immediate delivery dropped 0.6 percent to $1,635.47 an ounce by 9:14 a.m. in London. Prices slid 1.9 percent yesterday, the most since March 6, and today reached the lowest level in almost two weeks. Futures for June delivery fell 2.1 percent to $1,636.50 on the Comex in New York.
Platinum for immediate delivery dropped 0.6 percent to $1,632.50 an ounce. Prices touched the highest level since March 20 yesterday, when Autodata Corp. figures showed U.S. sales of cars and light trucks rose 13 percent in March.
BASE METALS
Copper declined as policy-meeting minutes from the Federal Reserve damped expectations for further monetary stimulus and increasing stockpiles signaled weaker demand. Nickel, zinc and lead fell.
Three-month copper fell as much as 1.3 percent to $8,500 a metric ton on the London Metal Exchange and traded at $8,517.25 at 3:18 p.m. in Tokyo. The May-delivery contract lost 1.2 percent to $3.8715 a pound on the Comex. Markets in China, the world’s biggest user, are shut today for a holiday.
GRAINS, SOFT COMMODITIES
Wheat dropped as rains in parts of the U.S., Russia and Ukraine helped improve crop prospects and investor appetite waned after the minutes of a meeting showed the U.S. Federal Reserve may hold off more monetary stimulus.
Wheat for May delivery lost as much as 0.7 percent to $6.5375 a bushel on the Chicago Board of Trade and was at $6.5425 at 3:16 p.m. Singapore time.
Corn prices gained a fourth day, the longest winning streak in more than a month, as supply from the last U.S. harvest declined and cold weather threatened planting in the world’s largest grower and exporter.
May-delivery corn rose as much as 0.8 percent to $6.6375 a bushel, before trading at $6.6175. Soybeans for May-delivery were little changed at $14.18 a bushel.
Palm oil climbed to the highest level in more than a year on speculation that buying from China, the biggest user of cooking oils, may increase when local markets reopen tomorrow after a three-day holiday.
June-delivery palm oil advanced as much as 1.2 percent to 3,574 ringgit ($1,167) a metric ton on the Malaysia Derivatives Exchange, the highest price for the most-active contract since March 9 last year, before trading at 3,545 ringgit at 4:34 p.m.
Rubber declined for a second day after the Federal Reserve damped expectations for monetary stimulus, sending the dollar higher and weakening investor demand for commodities as alternative assets.
To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net
To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net
