U.S. Commodities: Copper Closes at Record High; Supply Falls
2005-07-27 15:54 (New York)
By Jennifer Itzenson
July 27 (Bloomberg) -- Copper prices rose, closing at a
record, as global inventories declined, signaling growing demand
for the metal used in homes, cars and appliances.
The London Metal Exchange said stockpiles fell 300 metric
tons today to 26,550 tons. Inventories have dropped 46 percent
this year. Copper prices this week in New York, London and
Shanghai rose to the highest ever as demand from China, the
world's biggest user, showed little sign of slowing.
``We're in a bullish mode,'' said Michael Giblin, a partner
at Bruckman Trading Corp. in New York. ``We're close to contract
highs, and there is demand.''
In other markets, natural-gas prices rose amid speculation
that hot weather last week probably limited the pace at which
utilities added to inventories. Corn prices climbed. The energy-
weighted Goldman Sachs Commodity Index gained 1.12 to 394.54.
Copper futures for September delivery rose 2.1 cent, or 1.3
percent, $1.627 a pound on the Comex division of the New York
Mercantile Exchange. Prices reached an intraday record of $1.635.
Stockpiles monitored by Comex are down 75 percent this
year.
A futures contract is an obligation to buy or sell a
commodity at a set price for delivery by a specific date.
Natural Gas
Supplies likely rose by 50 billion cubic feet, the median of
21 estimates in a Bloomberg survey. That would trim a surplus
compared with a year earlier, as inventories last year gained by
70 billion, according to U.S. Energy Department data.
``We are expecting tomorrow's inventories to be less than
normal, so we're cutting into that surplus a little more,'' said
Chris Ovrebo, a broker with FC Stone LLC in Eden Prairie,
Minnesota.
Gas for August delivery rose 22.2 cents, or 3 percent, to
$7.647 per million British thermal units on the New York
Mercantile Exchange.
Copper
Corn prices rose for a second day on speculation that hot,
dry weather in the Midwest next week will hurt production of the
largest U.S. crop.
Above-normal temperatures and below-normal rains are
expected July 30 to Aug. 9, the National Weather Service said.
Temperatures will approach 94 degrees Fahrenheit (34.4 Celsius)
this weekend with temperatures averaging above normal in August,
said Todd Crawford, senior meteorologist for WSI Corp. in Andover
Maryland.
``Soil moisture has been depleted in a hot July, so regular
heavy rains are required to help corn finish pollinating and
develop kernels,'' said Gail Martell, president of
MartellCropProjections.com in Milwaukee, Wisconsin. ``A dry
weekend forecast is a worry.''
Corn futures for December delivery rose 2.5 cents, or 1
percent, to $2.4775 bushel on the Chicago Board of Trade. Corn
reached a 13-month high of $2.73 on July 18 on concern drought
would damage the crop. Prices fell 8.7 percent last week on
forecasts for rain this week.
Commodities settled as follows:
Precious metals:
December gold up $1.30 to $430.60 an ounce
September silver up 2.2 cents to $7.04 an ounce
October platinum down 50 cents to $884.90 an ounce
September palladium up 70 cents to $191.60 an ounce
Livestock:
October live cattle up 0.2 cent to 81.375 cents a pound
August feeder cattle down 0.125 cent to $1.07125 a pound
October lean hogs down 0.1 cent to 56.625 cents a pound
August pork bellies up 2 cents to 77.95 cents a pound
Grains:
November soybeans down 2.5 cents to $6.865 a bushel
December corn up 2.5 cents to $2.4775 a bushel
September wheat up 2 cents to $3.305 a bushel
December oats down 2.25 cents to $1.7175 a bushel
Food and Fiber:
September coffee down 2.5 cents to 99.35 cents a pound
September cocoa up $21 to $1,458 a metric ton
December cotton down 0.43 cent to 51.46 cents a pound
October sugar down 0.01 cent to 9.95 cents a pound
September orange juice up 0.35 cent to 98.15 cents a pound
Energy:
September crude oil down 9 cents to $59.11 a barrel
August natural gas up 22.2 cents to $7.647 per million British
thermal units
August heating oil up 1.35 cents to $1.6172 a gallon
August gasoline up 2 cents to $1.7158 a gallon
Others:
September copper up 2.1 cents to $1.627 a pound
September lumber down $5.40 to $307.70 per 1,000 board feet
--With reporting by Jim Kennett in Houston and Jeff Wilson in
Chicago. Editor: McKiernan |
