COMMODITIES-Up despite strong dlr; first CRB weekly gain in 5 wks

Fri Mar 8, 2013 10:43pm GMT

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* Gasoline up 2.6 pct, boosted by ethanol credits
    * Corn rises 2 pct as USDA forecasts tight supply
    * Cocoa jumps 2.8 pct on short covering
    * Orange juice up 7 pct after sharp cut in crop forecast

    By Barani Krishnan
    NEW YORK, March 8 (Reuters) - Commodities rose broadly on
Friday due in part to bullish U.S. jobs data and a government
crop report forecasting tight corn and orange juice supplies as
the complex posted its first weekly gain after losses the four
previous weeks.
    The gains came despite a strong dollar, which can slow sales
of U.S. commodities to foreign buyers.
    Oil prices finished mixed on the day. London's benchmark
Brent crude oil fell on the strength of the dollar. U.S.
crude closed up by riding the rally in local gasoline, after
higher-priced ethanol credits made European fuel imports too
expensive.
    The Thomson Reuters-Jefferies CRB index, a
closely-watched indicator of commodity prices, settled up 0.6
percent for the session. For the week, it rose 1.4 percent,
after posting losses without a break in four previous weeks.
    Fourteen of the 19 markets tracked by the CRB ended up for
the day. Prices of gasoline, corn and wheat all rose by nearly 3
percent. Orange juice, a largely domestic commodity in the
United States, had the biggest gain of the day on the CRB, up 7
percent for the day and hit it highest so far in 2013. 
    Juice prices surged after the U.S. Department of Agriculture
released a report showing a 2.0 million box drop in its outlook
for this year's crop in Florida, the top U.S. grower of oranges.
 
    
    GASOLINE HITS FIVE-MONTH HIGH
    In energy markets, the front-month contract for U.S.
gasoline settled up more than 8 cents at $3.2035 a
gallon. It peaked at $3.1989 during the session, its highest
since Sept. 28.
    Brokers and analysts said recent high prices for ethanol
blending credits, or RINs, had closed the arbitrage window for
gasoline imports from Europe. RIN stands for Renewable
Identification Number, a numeric code that producers or
importers of renewable fuels are required to generate for each
gallon.  
    Importers incur the obligation to have enough credits to
comply with U.S. renewable fuel law and current high prices make
them too expensive to buy.
    Bullish U.S. jobs data for February was another factor
behind the gasoline rally, although the data also boosted the
dollar against other major currencies. A strong dollar typically
weakens demand for commodities from holders of other currencies.
 
    "The combination of the spike in RINs and the
better-than-expected jobs numbers, and a lot of short covering,
pushed gasoline higher," said Phil Flynn, analyst at Price
Futures Group in Chicago.
    
    CORN UP ON CROP TIGHTNESS, SHORT-COVERING LIFTS COCOA
    U.S. corn futures jumped on a tighter-than-expected supply
outlook from the U.S. Department of Agriculture.
    The USDA, in a monthly crop report, kept its forecast for
supplies of both crops unchanged from February. Analysts polled
by Reuters had expected the government to increase its estimate
for corn inventories 1.7 percent.
    The estimate for corn supplies was steady at 632 million
bushels, a 17-year low.
    "There's more concern about the tightness in corn," said Don
Roose, president of U.S. Commodities.
    Corn's most-actively traded contract in Chicago, May,
settled up 13-3/4 cents, or 2 percent, at $7.25-1/4 a bushel.
    In New York-traded cocoa, the May contract finished
up $58, or 2.8 percent, at $2,120 a tonne.
    "The market got a little short and is now having a bit of a
short-covering backlash," a senior cocoa futures broker said.
    
 Prices at 5:02 p.m. EST (2202 GMT)      
                             LAST/      NET    PCT     YTD
                             CLOSE      CHG    CHG     CHG
 US crude                    91.85     0.29   0.3%    0.0%
 Brent crude                110.72    -0.43  -0.4%   -0.4%
 Natural gas                 3.629    0.047   1.3%    8.3%
 
 US gold                   1576.90     1.80   0.1%   -5.9%
 Gold                      1578.04     0.30   0.0%   -5.8%
 US Copper                  349.15    -1.00  -0.3%   -4.4%
 LME Copper                7740.50   -24.50  -0.3%   -2.4%
 Dollar                     82.712    0.631   0.8%    7.7%
                             
 
 US corn                    725.25    13.75   1.9%    3.9%
 US soybeans               1508.50     5.00   0.3%    6.3%
 US wheat                   690.00     3.25   0.5%  -11.3%
 
 US Coffee                  144.05     0.95   0.7%    0.2%
 US Cocoa                  2120.00    58.00   2.8%   -5.2%
 US Sugar                    18.75    -0.02  -0.1%   -3.9%
 
 US silver                  28.948    0.140   0.5%   -4.2%
 US platinum               1603.90     8.80   0.6%    4.2%
 US palladium               782.75    23.70   3.1%   11.3%
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