REFILE-COMMODITIES-Brent slips further below $100; copper extends slide

Wed Apr 17, 2013 10:53pm BST

Related Topics

Quotes

   

* Some commodities back in bear region as oil, copper fall
    * Brent crude settled below $98 a barrel
    * London copper edges near $7,000 a tonne support
    * Cotton, natgas rally; wheat, soybeans up more modestly

    By Barani Krishnan
    NEW YORK, April 17 (Reuters) - Oil and copper prices hit
multimonth lows on Wednesday, pulling part of the commodities
complex back into bearish territory even as some markets gained
ground after one of the worst two-day routs in the sector.
    Oil prices fell further. Brent crude in London plumbed a
nine-month bottom below $98 a barrel and U.S. crude in New York
matched Tuesday's four-month low near $86.
    In copper, London's key three-month contract headed toward
the $7,000 a tonne support after touching near an 18-month low.
    Gold rose in choppy trading after a two-year low
reached in the previous session triggered Asian physical buying.
Yet, the market struggled to hold onto gains due to a weak
outlook. 
    "Investors are still very wary about economic slowdown and
deflation," said Frank McGhee, head precious metals trader at
Integrated Brokerage Services in New York.
    Part of the pressure on gold came from the strength in the
dollar, which on Wednesday made its biggest advance against the
euro in nearly a year. The euro was weakened by talk of a
rate cut by the European Central Bank. Signs of economic malaise
in Britain and Canada added to the dollar's appeal. 
    The Thomson Reuters-Jefferies CRB index, a global
commodities indicator that tracks 19 mostly U.S.-traded markets,
fell 0.8 percent. It was largely weighed down by a drop of
nearly 4 percent in U.S. copper futures and a decline of
more than 2 percent in New York-traded crude, its main
component.
    On the positive side, the CRB was supported by a rise of
more than 1 percent in U.S. cotton and natural gas
. Wheat and soybeans also helped the index,
with more modest gains.   
    
    OIL DOWN SIXTH DAY, COPPER AT 2O11 LOWS
    Oil prices tumbled for a sixth straight day after a rise in
U.S. distillate inventories last week offset lower crude
stockpiles noted by the government-run Energy Information
Administration.
    "There was nothing in this report that was really bullish,"
Phil Flynn, analyst at the Chicago-based Price Futures Group,
said, referring to the EIA report. "So, now the market is
deferring to what we're seeing in the outside markets such as
the dollar and the stock market, which has been under pressure."
    Brent crude settled down $2.22 at $97.69, after
sinking earlier to $97.26, the lowest since July 2012. 
    Brent has fallen in 10 of the last 12 sessions, losing
nearly 12 percent in its biggest 12-day loss since June 2012.
The rout in commodities was triggered by data released Monday
showing growth in China, the world's second-largest oil
consumer, slowing unexpectedly in the first three months of
2013.
    U.S. crude settled down $2.04 at $86.68 a barrel.
U.S. crude hit the same low of $86.06 in the last two days of
trading.
    Copper fell more than 3 percent after the International
Monetary Fund downgraded its global economic growth projections
for this year and next, increasing worries about the prospects
for metals demand.
    In addition, European car sales, a major source of copper
demand, fell 10.3 percent in March as an economic contraction
spread to the region's more prosperous north. 
    Benchmark copper on the London Metal Exchange closed
down 2.8 percent at $7,080 a tonne. Its session low was $7,039,
its lowest since Oct. 2011. Copper, used in power and
construction, has lost more than 8 percent this year.     
    
 Prices at 4:31 p.m. EDT (2031 GMT)      
                             LAST/      NET    PCT     YTD
                             CLOSE      CHG    CHG     CHG
 US crude                    86.55    -2.04  -2.3%   -5.7%
 Brent crude                 97.55    -2.36  -2.4%  -12.2%
 Natural gas                 4.214    0.054   1.3%   25.8%
 
 US gold                   1382.20    -4.60  -0.3%  -17.5%
 Gold                      1374.80     6.87   0.5%  -17.9%
 US Copper                  320.25   -12.10  -3.6%  -12.3%
 LME Copper                7080.00  -220.00  -3.0%  -10.7%
 Dollar                     82.646    0.897   1.1%    7.7%
                              
 
 US corn                    660.50    -2.75  -0.4%   -5.4%
 US soybeans               1422.25    10.75   0.8%    0.2%
 US wheat                   703.75     0.25   0.0%   -9.5%
 
 US Coffee                  136.10     0.25   0.2%   -5.4%
 US Cocoa                  2299.00     5.00   0.2%    2.8%
 US Sugar                    17.85    -0.16  -0.9%   -8.5%
 
 US silver                  23.307   -0.321  -1.4%  -22.9%
 US platinum               1434.80   -15.20  -1.0%   -6.8%
 US palladium               661.40   -16.80  -2.5%   -6.0%
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.