Commodities Tumble to Four-Month Low as Crude, Gold Lead Losses

Commodities Nov 01, 2013 No Comments

CommoditiesCommodities 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.

Production is poised to top demand for everything from coffee to zinc as ample rains this year boosted global crops and demand waned for metals, grains and energy.

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.

Corn tumbled to a three-year low in Chicago after increased rain aided planting in Argentina, while global supplies are set to gain amid record production in the U.S., the world’s biggest grower.

via Commodities Tumble to Four-Month Low as Crude, Gold Lead Losses – Bloomberg

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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