Commodities dropped to a four-month low, paced by declines in crude oil and gold, on signs of climbing supplies of raw materials at a time when the prospect of reduced Federal Reserve stimulus may cut demand.
The Standard & Poor’s GSCI Spot Index of 24 raw materials lost 1.7 percent to 611.72 at 3:03 p.m. in New York, after touching 611.65, the lowest since July 1. West Texas Intermediate fell below $95 a barrel for the first time since June. Gold reached a two-week low. Hog futures capped the longest slump in three months, and cotton fell to the lowest since January.
Natural gas futures capped a third weekly loss as the outlook for a mild start to November signaled reduced heating-fuel demand. Forecasters including MDA Weather Services in Gaithersburg, Maryland, predicted seasonal or above-normal temperatures in the eastern U.S. through Nov. 15. About 49 percent of U.S. households use gas for heating, according to the EIA.