November 27, 2013 / 8:21 PM / in 4 years

REFILE-COMMODITIES-U.S. oil tumbles in pre-holiday trade; wheat rallies

5 Min Read

By Barani Krishnan
    NEW YORK, Nov 27 (Reuters) - Commodities fell broadly on
Wednesday on lighter trading ahead of the Thanksgiving holiday,
with U.S. oil prices losing their most in 2 weeks as
unexpectedly large crude stockpiles weighed on prices.
    Base metal prices slipped too as speculators piled pressure
on markets already hampered by surplus supplies. 
    Gold surrendered early gains as the dollar rose after a rash
of U.S. data supported the theory that the Federal Reserve might
soon pare its monetary stimulus. 
    Crop markets fared better.
    Wheat futures rose more than 1 percent, resuming a rally
buoyed by strong export prospects. 
    Robusta coffee rose for a second straight session,
hitting a six-week high, supported by heavy buying on the
physical market by a major roaster. 
    Despite those gains, the Thomson Reuters/Core Commodity CRB
index fell half a percent, as 13 of the 19 markets it
tracked traded in negative territory.
    The holiday mood ahead of Thursday's Thanksgiving also pared
volumes. Some commodities such as arabica coffee and
cocoa had about 25 percent fewer trades than their 30-day
norm, Reuters data showed.
    U.S. crude oil, the CRB's largest component
commanding about a quarter of the index's weighting, settled
down 1.5 percent at $92.30 a barrel on the New York Mercantile
Exchange. That was its sharpest loss since Nov. 12.
    Europe's Brent crude gained 0.4 percent to finish at
    U.S. oil fell after data from the Energy Information
Administration (EIA) showed domestic crude inventories rising
almost 3 million barrels to their highest level for this time of
year since records began in 1982. 
    The EIA report followed Tuesday's data from industry group
American Petroleum Institute (API), which showed stockpiles
rising by 6.9 million barrels last week. Analysts had expected
an increase of just around 600,000 barrels. 
    In wheat, the front-month on the Chicago Board of Trade
 hit 2-week high above $6.56 a bushel before settling
at$6.51-1/4 a bushel, up 0.7 percent on the day. It was the
market's fourth gain in five sessions. 
    Harvest problems in Australia and Argentina have brightened
the prospects for U.S. wheat exports. Major Australian wheat
customer Indonesia said it was looking elsewhere for food
imports because of a diplomatic rift with Australia.
    "I think it just sent out a message that the U.S. (wheat) is
competitive and global prices are indeed coming up a little
bit," said Tom Fritz, a partner at EFG Group in Chicago.
    Egypt, the world's top wheat importer, also underlined
robust global demand for the grain by purchasing 60,000 tonnes
from France. 
    Libya added to the bullish outlook as its agriculture
minister told Reuters on Wednesday it will resume imports soon
to meet domestic needs. 
    Prices at 2:57 p.m. EDT (1957 GMT)      
                             LAST/      NET    PCT     YTD
                             CLOSE      CHG    CHG     CHG
US crude              92.22    -1.46  -1.6%    0.4%
Brent crude         111.37     0.49   0.4%    0.2%
Natural gas           3.895    0.031   0.8%   16.2%
US gold             1237.80    -3.60  -0.3%  -26.1%
Gold                1239.46    -3.44  -0.3%  -26.0%
US Copper              3.20    -0.01  -0.4%  -12.4%
LME Copper         7020.00   -45.00  -0.6%  -11.5%
Dollar               80.717    0.106   0.1%    5.1%
CRB              273.500   -1.272  -0.5%   -7.3%
US corn               417.25    -1.25  -0.3%  -40.2%
US soybeans          1320.00    -9.25  -0.7%   -7.0%
US wheat              651.25     4.75   0.7%  -16.3%
US Coffee            107.60    -0.55  -0.5%  -25.2%
US Cocoa            2770.00    -3.00  -0.1%   23.9%
US Sugar              17.22    -0.08  -0.5%  -11.7%
US silver            19.633   19.435   1.6%  -35.0%
US platinum         1352.70   -19.20   0.0%  -12.1%
US palladium         714.35    -1.85  -0.3%    1.6%

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