* Gold, copper rebound from one-month lows
* Cocoa, soybeans rise too as demand concerns ease
* Oil slips as Saudi output, US stockpiles rise
By Barani Krishnan
NEW YORK, Oct 16 Gold and copper prices
rebounded from one-month lows on Tuesday as the dollar fell,
providing investors using other currencies more opportunity to
buy raw materials.
Cocoa and soybeans prices rose too as concerns over demand
for the two food-based commodities eased. Bargain-hunting also
emerged in those markets, with buyers attracted to cocoa's
two-month lows from last week and Monday's 3-1/2-month bottom in
Oil prices fell, dragged down by higher pumping of crude by
top producer Saudi Arabia and a hefty buildup in stockpiles in
the No. 1 energy consuming nation, the United States.
The drop in oil prices limited gains on the Thomson
Reuters-Jefferies CRB index, a globally watched
indicator for commodities whose largest component is U.S. crude
By 2:00 p.m. EDT (1800 GMT), the CRB was up by only about
half a percent despite gains in 13 of the 19 commodity markets
it tracks. Cotton was the best performer, rising nearly 4
percent, while cocoa rose more than 2 percent.
GOLD SNAPS 2-DAY LOSS
Gold prices snapped two days of losses, helped by the
dollar's drop against the euro and after data suggesting U.S.
consumer prices had not risen enough to derail the Federal
Reserve's ultra-easy monetary policy.
The U.S. Labor Department said the Consumer Price Index
climbed 0.6 percent in September, matching analysts'
expectations and August's reading.
Gold has rallied $200 an ounce in the last two months due to
hopes that the Fed's monetary stimulus might trigger inflation.
"From an inflation standpoint, the fact that the CPI is in
line gives the Fed more room to continue easing," said Adam
Sarhan, chief executive at Sarhan Capital.
The Fed pledged last month it would buy at least $40 billion
of mortgage-backed securities a month until the domestic job
market improves dramatically.
The euro rose to a one-week high against the dollar
after a media report indicated Germany was open to a
precautionary line of credit for debt-burdened Spain.
The spot price of gold hovered around $1,745 an
ounce, up 0.4 percent on the day and well above Monday's
one-month low at $1,728.75. U.S. gold futures' most active
contract, December, settled up half a percent at
Copper was aided by expectations that a meeting of European
leaders later in the week might advance plans to tackle Spain's
and Greece's debts.
Three-month copper on the London Metal Exchange
ended at $8,125 a tonne, up 0.4 percent on the day and sharply
above Monday's one-month low of $8,050.
COCOA UP AS EUROPE GRINDS LESS
Cocoa rebounded, with investors relieved to see European
grind data falling in line with market expectations. An
indicator of demand for chocolate's key ingredient, Europe's
third-quarter cocoa grind shrank by more than 16 percent from
the same period last year to 316,676 tonnes.
U.S. cocoa's front-month futures closed at $2,418 a
tonne in New York, up nearly 3 percent, after dipping to $2,338
on Friday, its lowest level since July 31.
Soybean prices rose partly in response to the U.S.
Department of Agriculture reporting a sale of 110,150 tonnes of
U.S. soybeans to an unknown destination, which traders said
could be China.
Soy's front-month contract on the Chicago Board of Trade
hovered around $14.97 a bushel, up about 0.3 percent on
the day and sharply higher from the early July bottom of below
$14.85 set on Monday.
Prices at 2:04 p.m. EDT (1804 GMT)
LAST NET PCT YTD
CHG CHG CHG
US crude 91.80 -0.05 -0.1% -7.1%
Brent crude 115.00 -0.80 -0.7% 7.1%
Natural gas 3.444 -0.042 -1.2% 15.2%
US gold 1745.90 8.30 0.5% 11.4%
Gold 1744.04 8.55 0.5% 11.5%
US Copper 370.55 0.40 0.1% 7.8%
LME Copper 8141.75 47.25 0.6% 7.1%
Dollar 79.389 -0.353 -0.4% -1.0%
US corn 736.25 -1.00 -0.1% 13.9%
US soybeans 1499.25 7.50 0.5% 25.1%
US wheat 860.50 0.00 0.0% 31.8%
US Coffee 162.20 1.35 0.8% -28.9%
US Cocoa 2397.00 43.00 1.8% 13.7%
US Sugar 20.16 0.31 1.6% -13.2%
US silver 32.905 0.162 0.5% 17.9%
US platinum 1644.50 11.40 0.7% 17.1%
US palladium 639.50 6.90 1.1% -2.5%