Corn Jumps as Global Inventories Shrink: Commodities at Close

(Businessweek) – The Standard & Poor’s GSCI Spot Index of 24 raw materials rose 1.1 percent to settle at 671.84 at 4 p.m. New York time, led by grains and energy.

The UBS Bloomberg CMCI gauge of 26 prices gained 0.8 percent to 1,630.64.

GRAINS, OILSEEDS

Corn jumped to a three-week high after a government report showed global inventories will drop more than expected as the worst U.S. drought in more than 50 years cuts output by the most since 1996.

Worldwide inventories on Oct. 1 will be 117.27 million metric tons, down from 123.95 million predicted a month ago and 131.54 million estimated this year, the U.S. Department of Agriculture said. Reserves as a percent of consumption will fall to 13.7 percent, the lowest since 1974. Stockpiles in the U.S., the largest grower and exporter, will fall 37 percent to 15.73 million tons from last year.

Corn futures for December delivery rose 5 percent to $7.7325 a bushel on the Chicago Board of Trade. Earlier, the price reached $7.76, the highest for a most-active contract since Sept. 17.

Soybean futures for November delivery climbed 1.7 percent to $15.485 a bushel the biggest gain since Sept. 28.

Wheat futures for December delivery rose 1.9 percent to settle at $8.86, the largest increase since Sept. 28. The price gained for the fourth straight day, the longest rally since late August. The grain has climbed 41 percent since

NATURAL GAS

Natural gas jumped to a 10-month high after a government report showed a U.S. stockpile increase that was below analyst forecasts.

On the New York Mercantile Exchange, gas futures for November delivery rose 3.7 percent to $3.604 per million British thermal units, the highest settlement since Dec. 1.

U.K. gas for same-day delivery fell as imports from Belgium climbed to the highest since February.

The price dropped 1.2 percent to 64.75 pence a therm at 4:27 p.m. London time after reaching 66.15 pence yesterday, the highest since Feb. 10. Month-ahead gas slipped 0.3 percent to 63.65 pence a therm. That’s equivalent to $10.24 per million Btu.

CRUDE OIL

Crude oil advanced after the fewest number of Americans in four years filed first-time applications for unemployment benefits and on concern that tension between Syria and Turkey will disrupt shipments from the Middle East.

On the Nymex, oil futures for November delivery rose 0.9 percent to $92.07 a barrel.

Brent oil for November settlement increased 1.2 percent to $115.71 a barrel on the London-based ICE Futures Europe exchange.

BP Plc, which this week booked a supertanker to ship North Sea crude to South Korea, bought a fourth Forties cargo today. It didn’t manage to buy Russian Urals blend in northwest Europe for the third time in four days even after raising its bid.

Daily exports of the 12 main grades of North Sea crudes for loading in November will jump to the highest in five months after the completion of field maintenance.

OIL PRODUCTS

Heating oil jumped to a six-month high as U.S. distillate stockpiles decreased more than expected last week.

On the Nymex, heating oil for November delivery advanced 1.4 percent to $3.2571 a gallon, the highest settlement since March 19.

Gasoline futures for November delivery fell 0.1 percent to $2.9556 a gallon.

BASE METALS

Copper futures rose the most in two weeks on signs of improving prospects for demand after South Korea and Brazil cut interest rates and U.S. jobless claims fell.

On the Comex in New York, copper futures for December delivery gained 0.9 percent to $3.7515 a pound, the biggest increase since Sept. 27.

On the London Metal Exchange, copper for delivery in three months climbed 0.9 percent to $8,239.50 a metric ton ($3.74 a pound). Nickel, aluminum and tin gained, while lead and zinc fell.

PRECIOUS METALS

Gold futures rose, tracking gains in commodities, after U.S. applications for jobless benefits dropped, and South Korea and Brazil cut rates to bolster their economies.

Gold futures for December delivery rose 0.3 percent to $1,770.60 an ounce on the Comex in New York. The price has climbed 13 percent this year.

Silver futures for December delivery fell 0.1 percent to $34.082 an ounce.

Platinum futures for January delivery advanced 0.7 percent to $1,689.60 an ounce on the New York Mercantile Exchange, ending a four-session decline. Palladium futures for December delivery rose 0.2 percent to $650.90 an ounce.

SOFT COMMODITIES

Sugar futures tumbled the most in 11 weeks on mounting concern that that worldwide production will outpace consumption.

On ICE Futures U.S., raw sugar for March delivery tumbled 3.8 percent to 20.45 cents a pound, the biggest slide since July 26. The price has dropped 12 percent this year.

Arabica-coffee futures for December delivery fell 1.7 percent to $1.6075 a pound. Earlier, the price touched $1.603, the lowest since Sept. 7.

Cocoa futures for December delivery dropped 0.9 percent to $2,351 a ton. Earlier, the price touched $2,341, the lowest since July 31.

Cotton for December delivery fell 1.9 percent to close at 70.71 cents a pound, the biggest drop since Sept. 21.

Orange-juice futures for November delivery climbed 2.1 percent to $1.136 a pound. Earlier, the price reached $1.1995, the highest since Sept. 24.

LIVESTOCK

Cattle prices declined the most in two weeks on speculation that U.S. beef supplies will increase as higher corn costs spur feedlots to send more animals to slaughter.

On the Chicago Mercantile Exchange, cattle futures for December delivery fell 0.5 percent to $1.25925 a pound, the biggest drop since Sept. 26.

Feeder-cattle futures for November settlement declined 2 percent to $1.438 a pound.

Hog futures for December settlement fell 0.8 percent to 77.5 cents a pound. The price has dropped 8.1 percent this year.

To contact the reporter on this story: Patrick McKiernan in New York at  pmckiernan@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at  sstroth@bloomberg.net