* Stronger U.S. jobs market underpins recovery hopes
* Corn rises 1 pct, sugar up as well
* Robusta coffee hits 5-month high on dry weather worry
By Barani Krishnan
NEW YORK, March 11 A number of commodities were
higher for a second straight session on Monday on hopes that a
recovering U.S. economy will lead to better demand, while
coffee, sugar and corn rallied on worries about harsh weather
and supply tightness.
A fresh record high on the Dow Jones industrial average for
U.S. stocks added support across the sector.
The dollar fell against the euro, but remained near a
3-1/2-year high against the yen on speculation that the
rebounding U.S. labor market could prompt the U.S. Federal
Reserve to retreat sooner than expected from its ultra-loose
The energy and metals markets, however, traded more on the
bullish U.S. job numbers for February, released on Friday,
ending broadly up or off the lows of the day.
Data from China pointing to higher inflation and slower factory
growth and spending offset some of the positive sentiment.
The Thomson Reuters-Jefferies CRB index, a
bellwether for commodity prices, settled up 0.1 percent.
Twelve of the 19 markets tracked by the CRB ended up, with corn
rising about 1 percent or more to lead gains.
ROBUSTA COFFEE, RAW SUGAR RALLY
Coffee futures traded in London rose to a five-month high,
buoyed by concerns about dry weather in the world's largest
producer Vietnam. Raw sugar prices in New York also rose.
London-traded robusta coffee have risen more than 14 percent
so far this year, boosted by a combination of strong demand and
concern that the 2013/14 crop in Vietnam could fall
significantly due to dry weather.
"The drought is a continuing problem, and what it's doing is
causing farmers to want to hold onto the current production,"
said Sterling Smith, futures specialist with Citigroup in
In Monday's session, May robusta coffee futures in London
rose $9, or 0.4 percent, to close at $2,190 a tonne
after earlier touching $2,198, the highest level for the
benchmark second month since October 2012.
May raw sugar futures in New York inched up 0.07
cent, or 0.4 percent, to finish at 18.82 cents a lb.
"We had a lot of activity last week in sugar, and we're
taking a breather right now," said Michael McDougall, a vice
president at Newedge USA in New York.
Sugar prices also found support from efforts by Brazil's
federal government to support the country's cane industry and to
rein in inflation. The Brazilian government plans to reduce
taxes on ethanol, which may guide more cane into ethanol rather
than sugar production, and also on food staples, seen as likely
boost internal consumption. (Full Story)
CORN UP FOR 3RD DAY IN ROW
Corn futures in Chicago rose more than 1 percent, posting
advances for the third straight day on tight stocks and on
spillover from the rally that followed the bullish corn supply
numbers the U.S. government released Friday.
"Corn is leading everything higher today and it's technical
support after the USDA report. Managed money is buying after the
aggressive fund liquidation that we've seen," said Shawn
McCambridge, an analyst for Jefferies Bache.
The U.S. Department of Agriculture's March supply/demand
report on Friday kept projected corn stocks unchanged at a
17-year low. The market had expected higher inventories.
U.S. corn for May delivery ended up 7-3/4 cents per
bushel at $7.11-1/4.
Prices at 6:28 p.m. EST (2228 GMT)
LAST/ NET PCT YTD
CLOSE CHG CHG CHG
US crude 91.76 -0.30 -0.3% -0.1%
Brent crude 110.04 -0.81 -0.7% -1.0%
Natural gas 3.649 0.000 0.0% 8.9%
US gold 1578.00 1.10 0.1% -5.8%
Gold 1581.24 0.85 0.1% -5.6%
US Copper 350.00 0.85 0.2% -4.2%
LME Copper 7758.00 17.50 0.2% -2.2%
Dollar 82.608 -0.088 -0.1% 7.6%
US corn 734.50 9.25 1.3% 5.2%
US soybeans 1514.75 6.25 0.4% 6.8%
US wheat 694.00 4.00 0.6% -10.8%
US Coffee 143.75 -0.30 -0.2% 0.0%
US Cocoa 2130.00 10.00 0.5% -4.7%
US Sugar 18.82 0.07 0.4% -3.5%
US silver 28.853 -0.095 -0.3% -4.5%
US platinum 1601.20 -2.70 -0.2% 4.1%
US palladium 779.20 -3.55 -0.5% 10.8%