Commodity Index Extends Slide to Lowest Since October

Commodities Jun 01, 2012 No Comments

Commodity index“We’re getting very weak data going into June and the markets don’t like it. Economies are slowing and demand will fall.”
Commodities extended their decline, falling to the lowest level in almost eight months, after U.S. employers created fewer jobs than economists estimated and Chinese manufacturing slowed.

Crude oil for July delivery fell $3.30, or 3.8 percent, to $83.23 a barrel on the New York Mercantile Exchange, the lowest settlement since Oct. 7. Prices fell 17 percent in May, the biggest slide since December 2008.

Brent oil for July settlement slipped $3.44, or 3.4 percent, to $98.43 a barrel on the ICE Futures Europe exchange in London. It was the lowest close since Jan. 27, 2011. Brent is down 8.3 percent this year.

Natural gas for July delivery dropped 9.6 cents, or 4 percent, to settle at $2.326 per million British thermal units on the Nymex. Futures, which dropped to a 10-year intraday low of $1.902 on April 19, are down 22 percent this year.

Copper fell in New York, capping the longest streak of weekly declines in two years. Copper futures for July delivery retreated 1.5 percent to $3.3135 a pound on the Comex, the lowest settlement price this year.

On the London Metal Exchange, copper for delivery in three months dropped 0.9 percent to $7,361 a metric ton ($3.34 a pound). Aluminum, tin, lead and nickel also declined in London. Zinc rose.

Wheat slid, capping the biggest weekly loss in more than 14 months, on speculation that global supplies will be ample as the harvest in the U.S. progresses and rains ease dry conditions from Russia to Kansas. Wheat for July delivery dropped 4.9 percent to end the session at $6.1225 a bushel on the Chicago Board of Trade. Futures fell 10 percent this week.

Cotton futures fell on concern that a sluggish global economy will erode demand. Cotton for December delivery slid 3.9 percent to close at 67.61 cents on ICE Futures U.S. in New York. Orange juice futures for July delivery slipped 0.3 percent to $1.117 a pound in New York.

Gold and silver led the commodities moving higher. Gold rose the most since Sept. 27 on speculation that the Federal Reserve will take steps to stimulate growth. Gold futures for August delivery jumped 3.7 percent to settle at $1,622.10 an ounce on the Comex in New York. It was the biggest gain for a most-active contract since Aug. 8.

Silver for July delivery rose 2.7 percent to $28.512 an ounce on the Comex. Futures fell 11 percent last month.

via Commodity Index Extends Slide to Lowest Since October – Bloomberg.

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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.

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