Market News Commodities Rebound From Four-Month Low Amid Speculation Demand to Climb |
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Commodities rebounded from the lowest level in more than four months led by gains in crude oil and copper as investors maintained their bullish outlook for raw-materials The Standard & Poor?€™s GSCI index of 24 commodities rallied as much as 1 percent to 655.20, paring yesterday?€™s 3.6 percent slump that was driven by a drop in crude after the International Energy Agency said it will release oil stockpiles. Oil in New York jumped as much as 1.5 percent, copper in London climbed as much as 1.2 percent, and corn in Chicago rose 1 percent. ?€œI?€™m bullish commodities and see it as a chance to buy,?€ said Tetsu Emori, a fund manager at Astmax Co. Ltd. in Tokyo. The decline yesterday was ?€œan exaggeration.?€ The index?€™s drop was the biggest fall since May 11 and it ended at 648.75, the lowest level since Feb. 8. Crude for August delivery climbed as much as $1.32 to $92.34 per barrel, and was at $92.22 at on the New York Mercantile Exchange at 12:10 p.m. in Singapore. The contract yesterday slid to $91.02 a barrel, the lowest settlement since Feb. 18. Still, the price is up 21 percent over the past year. ?€œOil no longer looks expensive,?€ Tobias Merath, head of commodity research at Credit Suisse at Credit Suisse AG in Zurich, said today in a report. Global demand growth may be more than 1 million barrels a day in the third quarter, he said. The IEA announced the release of 2 million barrels a day for 30 days to make up for supplies choked off by an armed rebellion in Libya. It?€™s only the third time in the history of the Paris-based agency that the stockpiles have been tapped. Weekly LossThe S&P GSCI is set for a second weekly loss after shedding 4.7 percent last week. Federal Reserve Chairman Ben S. Bernanke on June 22 reiterated a pledge to keep interest rates near zero as the central bank reduced its growth and employment forecasts for the world?€™s biggest economy. ?€œWe?€™re seeing a bit of a relief rally today, which will be difficult to sustain as the global macroeconomic environment isn?€™t supportive,?€ Li Qiang, an analyst at Xinhu Futures Co., said from Shanghai referring to base-metal prices. Copper for three-month delivery on the London Metal Exchange climbed as much as $105 to $9,065 a metric ton, and traded at $9,060. Copper, used to make pipes and wires, is little changed this week and 5.6 percent lower this year. Corn for December delivery gained as much as 6.75 cents to $6.5275 per bushel on the Chicago Board of Trade, while wheat and soybeans also climbed. Rubber futures on the Tokyo Commodity Exchange reversed losses, with the November-delivery contract gaining as much as 1.1 percent to 364.5 yen per kilogram. To contact the reporter on this story: Chanyaporn Chanjaroen in Singapore at This e-mail address is being protected from spambots. You need JavaScript enabled to view it To contact the editor responsible for this story: James Poole at This e-mail address is being protected from spambots. You need JavaScript enabled to view it Authors: Commodities - Yahoo! News Search Results |
