COMMODITIES-Oil, copper rebound as Cyprus says near bailout deal

Fri Mar 22, 2013 5:13pm EDT

* Markets rise as Cyprus says hours from new rescue plan
    * Brent crude up slightly on day, down over 2 pct on week
    * Copper also inches up on day, slides 1 pct on week
    * Gold slips for session, but has biggest week in 2 months

    By Barani Krishnan
    NEW YORK, March 22 (Reuters) - Oil and copper prices rose
while gold and corn fell on Friday as Cyprus' debt drama and
worries how that could affect the broader euro zone led to
another volatile session in commodities.
    The euro rose and was headed for its first weekly gain in
seven weeks against the dollar on hopes Cyprus will find a
solution before Monday to avert a financial meltdown. The weaker
dollar made some commodities denominated in the U.S. currency
more attractive to holders of the euro. 
    The Thomson Reuters-Jefferies CRB index, a global
indicator for commodities, rose 0.2 percent on the day. But for
the week, the 19-commodities index was down 0.6 percent,
accounting for losses in three of five sessions.
    In oil, London's benchmark Brent crude settled at
$107.66 a barrel, up 19 cents on the day and down $2.16 on the
week. 
    U.S. May crude finished at $93.71 a barrel, up $1.26
on the session and 26 cents on the week.
    The gains in oil came after investors mulled the possibility
of a deal to bail out Cyprus.
    Cyprus was just hours away from a deal to raise billions of
euros and unlock a bailout from the European Union that could
avert financial meltdown and exit from the euro, the ruling
party in the debt-laden Mediterranean state said on Friday.    
 
    Three-month copper on the London Metal Exchange 
closed at $7,655 a tonne from $7,580 at the close on Thursday,
reversing losses from the previous session, when it fell half a
percent. 
    Copper prices fell 1.1 percent this week, in the biggest
decline since late February. Prices hit a seven-month trough at
$7,486.25 a tonne on Tuesday, and were still down around 4
percent on the year. 
    "We've seen consumer buying not just in China but also
Europe and the U.S., but I don't see consumers having need to
chase prices really. Inventories are rising everywhere and mine
supply is picking up strongly," said Citi analyst David Wilson. 
    "We're getting close to more fundamentally justified prices
for a lot of metals. You're going to continue to see copper
inventory rise this year." 
    Gold fell as investors took profits a day after the precious
metal hit a one-month high. 
    The spot price of gold was down 0.4 percent at
$1,607.31 an ounce.
    For the week though, spot gold gained 1 percent, its biggest
weekly gain in two months, with investors seeking refuge in the
precious metal for most of the week amid worries over Cyprus.
    Corn futures slid 1 percent for the day as investors squared
positions after fund buying earlier in the week boosted prices.
 
    Corn for May delivery on the Chicago Board of Trade 
settled down 6-3/4 cents at $7.26-1/4 a bushel for the session.
For the week, it rose 1.2 percent.
    
 Prices at 4:54 p.m. EDT (2054 GMT)      
                             LAST/      NET    PCT     YTD
                             CLOSE      CHG    CHG     CHG
 US crude                    93.88     1.43   1.6%    2.2%
 Brent crude                107.67     0.20   0.2%   -3.1%
 Natural gas                 3.927   -0.008  -0.2%   17.2%
 
 US gold                   1606.10    -7.70  -0.5%   -4.2%
 Gold                      1608.20    -5.89  -0.4%   -4.0%
 US Copper                  345.40     3.10   0.9%   -5.4%
 LME Copper                7655.00    72.50   1.0%   -3.5%
 Dollar                     82.358   -0.382  -0.5%    7.3%
                              
 
 US corn                    726.25    -6.75  -0.9%    4.0%
 US soybeans               1440.50    -8.50  -0.6%    1.5%
 US wheat                   729.75     1.00   0.1%   -6.2%
 
 US Coffee                  135.30     1.55   1.2%   -5.9%
 US Cocoa                  2159.00    -7.00  -0.3%   -3.4%
 US Sugar                    18.20    -0.01  -0.1%   -6.7%
 
 US silver                  28.698   -0.514  -1.8%   -5.1%
 US platinum               1581.70     1.60   0.1%    2.8%
 US palladium               761.55     4.70   0.6%    8.3%
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