* Markets jump as US consumer sentiment hits 5-year high
* CRB up for the week, first time in 6 weeks
* Gasoline leads gains, up 3 pct on day, on Sandy woes
* Oil also rises, along with cocoa, copper
By Barani Krishnan
NEW YORK, Nov 9 Gasoline futures in New York
surged on Friday as supplies remained tight after Hurricane
Sandy, and oil and commodities such as cocoa and sugar also rose
as U.S. consumer sentiment hit a five-year high in spite of the
nation's economic woes.
Data showing an acceleration in infrastructure investment in
China and the highest production in five months from the
country's factories lent more support to raw materials prices.
The dollar's rally against the euro proved to be a
negative for some commodities priced in the U.S. currency,
including copper and arabica coffee.
The dollar was bolstered by data showing U.S. consumer
sentiment at a five-year high despite worries of a looming
recession, with nearly $600 billion worth of spending cuts and
tax increases scheduled to go into effect early next year.
The euro fell to a two-month low as growth in Germany
appeared to slow for a fourth quarter, and France said it was
headed for negative growth.
CRB UP IN ITS FIRST WEEK SINCE SEPT
The Thomson Reuters-Jefferies CRB index, a globally
watched indicator for commodities, settled up slightly after 10
of the 19 markets it tracked ended higher.
On a weekly basis, it was the first positive close for the
CRB since the week ending Sept. 30.
For weeks, the CRB had declined on a combination of worries
over Europe and the potential delay in U.S. economic recovery
due to Hurricane Sandy. The dollar's unexpected strength against
the euro -- despite a third round of U.S. quantitative easing
since September -- also caught many offguard.
"A lot of people expected a weaker dollar post-QE III and
that hasn't been the case recently," said BNP Paribas analyst
GASOLINE OUTPERFORMS PACK
Front-month gasoline on the New York Mercantile
Exchange settled up 91 cents at $2.6992 per gallon. Its 3.5
percent gain on the day was the highest on the CRB.
Dealers attributed the rally in gasoline to speculation over
delivery problems and tight supplies in storm-hit New York
Harbor and the first rationing of gasoline in New York City
since the 1970s.
The New York Harbor, delivery point for the NYMEX gasoline
contract, was still in a flux 11 days after Hurricane Sandy
struck the U.S. Northeast. Many energy terminal operations were
still constrained, refineries were shut and the retail supply
chain for gasoline remained squeezed.
Crude oil prices also rose, although more modestly than
Front-month crude in New York settled up 1.2 percent at
$86.07 a barrel. In London, Brent crude climbed as much
as 2 percent to a session high of $109.78.
SUGAR, COCOA RISE ON OUTPUT PRESSURE
Front-month raw sugar settled up 1.2 percent at 19.06
cents lb positive in New York, on talk that rain in top grower
Brazil had slowed down cane crushing.
Cocoa finished up nearly 1 percent at $2,359 per
tonne on forecasts for lower production in the beverage and
"We expect global cocoa production to fall mainly due to
adverse weather conditions in West Africa that have hampered
production. We forecast a 98,000-tonne deficit in the cocoa
market," Barclays said in a note.