Commodities Slump a Second Day on Japan Nuclear Crisis, Economy – Bloomberg.com

Commodities Apr 12, 2011 No Comments

Commodities slid the most in four weeks, led by declines in oil, wheat and industrial metals, after Japan raised the severity rating of its nuclear crisis and earthquakes struck the nation.

The Standard & Poor’s GSCI spot index of 24 raw materials dropped 2.6 percent to 730.41 by 12:19 p.m. in New York, a second consecutive decline, as crude oil futures retreated in the biggest two-day drop in 11 months. Wheat headed for the biggest slide in four weeks in Chicago and lead fell 4.1 percent in London.

Japan was hit by two earthquakes stronger than magnitude-6 today and the government raised the severity rating of its nuclear crisis to the highest level, matching the 1986 Chernobyl disaster. The International Energy Agency warned that oil above $100 is starting to hurt the global economy, while yesterday the International Monetary Fund lowered its forecast for U.S. and Japanese growth this year. U.S. and European equities fell.

“There continues to be concern about what this is doing to the economy, with particular focus on the situation in Japan,” said John Kilduff, a partner at Again Capital LLC, a New York- based hedge fund that focuses on energy.

Crude for May settlement fell $3.82, or 3.5 percent, to $106.10 a barrel:

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via Commodities Slump a Second Day on Japan Nuclear Crisis, Economy – Bloomberg.com.

Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.