* Dollar rises against euro as investors shun risk
* World Bank cuts East Asia/Pacific forecast, warns about
* Oil prices down for a second day
* Cocoa hits 2-month low, arabica coffee 1-month bottom
* Twelve of 19 markets on CRB slip
By Barani Krishnan
NEW YORK, Oct 8 Oil closed down for a second
straight day on Monday and prices of soft commodities such as
sugar and cocoa fell after the dollar rebounded on worries over
the global economy, weighing on raw materials denominated in the
The World Bank cut its economic growth forecasts for the
East Asia and Pacific region on Monday and said there was a risk
the slowdown in China could worsen and last longer than many
analysts have forecast. In Europe, investors were worried about
when Spain will request for aid as it struggles to manage its
public finances and recapitalize banks.
Benchmark Brent crude in London fell about 0.7 percent over
the last two sessions as the dollar <.DXY > strengthened from a
two-week low against the euro.
Cocoa hit a two-month low and arabica coffee a one-month
bottom. Gold extended its losses from the previous
session to mark the largest two-day drop since August.
"We're in a risk off day," said BNP Paribas metals analyst
Twelve of the 19 commodities tracked by the Thomson
Reuters-Jefferies CRB index showed losses, with copper,
aluminium, gasoline, silver and orange juice all sliding by more
than 1 percent.
Oil prices fell on concerns that slower economic growth in
China and the debt crisis in Europe will curb demand for
petroleum, while the potential for Middle East turmoil to
disrupt supplies limited losses.
"The situation between Turkey and Syria and some German
export data that was unexpectedly supportive helped pull prices
off lows," said Phil Flynn, analyst at Chicago's Price Futures
Brent settled down 20 cents, or 0.2 percent, at $111.82 a
barrel, after falling to a session low of $110.54.
U.S. crude oil's front-month contract finished down
55 cents or 0.6 percent, at $89.33 a barrel.
New York-traded cocoa futures came under pressure from
sterling's weakness against the dollar.
Prospects for the success of sector reforms in top cocoa
grower Ivory Coast and weak European demand ahead of
third-quarter European grind figures due later this month kept
the market's downtrend intact.
"The grind is weighing on the market a tad," a London-based
cocoa futures broker said.
U.S. cocoa for December delivery closed down $1 at
$2,381 per tonne, the lowest settlement since Aug. 2, and
remaining just above the 100-day moving average of $2,357.
The spot price of gold was down about 0.4 percent,
hovering around $1,776 an ounce by 2000 GMT and extending
Friday's 0.5 percent drop.
The near 1-percent decline since Thursday's settlement is
the sharpest decline for spot gold over a two-day period since
August, Thomson Reuters data showed.
Prices at 3:58 p.m. EDT (1957 GMT)
LAST/ NET PCT YTD
CLOSE CHG CHG CHG
US crude 89.68 -0.20 -0.2% -9.3%
Brent crude 112.11 0.09 0.1% 4.4%
Natural gas 3.403 0.007 0.2% 13.9%
US gold 1775.70 -5.10 -0.3% 13.3%
Gold 1775.39 -5.09 -0.3% 13.5%
US Copper 371.80 -6.00 -1.6% 8.2%
LME Copper 8185.00 -110.00 -1.3% 7.7%
Dollar 79.583 0.246 0.3% -0.7%
US corn 742.00 -6.50 -0.9% 14.8%
US soybeans 1548.00 -3.00 -0.2% 29.2%
US wheat 871.25 2.50 0.3% 33.5%
US Coffee 169.10 1.00 0.6% -25.9%
US Cocoa 2381.00 -1.00 0.0% 12.9%
US Sugar 21.42 -0.12 -0.6% -7.8%
US silver 34.017 -0.555 -1.6% 21.9%
US platinum 1696.80 -8.40 -0.5% 20.8%
US palladium 656.95 -6.25 -0.9% 0.1%