By Barani Krishnan
NEW YORK, Oct 3 Copper prices tumbled more than
1 percent on Thursday and gold and oil fell too, as data showing
slower service sector growth in September compounded worries
about raw materials demand given a budget crisis and the U.S.
government's partial shutdown.
Grain market fundamentals lifted wheat to 3-1/2 month highs
and its highest premium to corn since 2010, due to strong export
demand and supply risks in major producing countries.
Cocoa had its sharpest fall in more than a month after
technical selling triggered by bearish price patterns.
The Thomson Reuters-Jefferies CRB index, a
bellwether for commodity prices, shed 0.3 percent as 9 of the 19
markets on the index closed lower.
The losses came despite a weaker dollar that usually boosts
prices of commodities quoted in the currency.
Traders said oil, gold and copper were
all pressured by the U.S. government's spending impasse, and
higher-stakes wrangling due in mid-October over its borrowing
Weaker-than-expected growth in the U.S. service sector also
weighed on copper. The Institute for Supply Management said its
services index fell to 54.4 last month after nearing an
eight-year high in August.
Since the start of the year, copper prices have fallen 9
percent from a combination of a weak demand outlook and rising
stockpiles of the metal at exchange-monitored warehouses.
"Copper's fundamentals are deteriorating," said Stephen
Briggs, strategist at BNP Paribas.
Copper's benchmark three-month futures on the London Metal
Exchange closed down 1.2 percent at $7,189 per tonne.
In New York, the most-active copper contract on COMEX,
December, settled down 1.4 percent at $3.2685 a lb.
Wheat futures rose for a third straight session after
forecasts of crop-threatening frost in Australia added to a flow
of recent news suggesting a tightening global wheat market.
Wheat's front-month contract on the Chicago Board of Trade,
December, settled up 3-1/4 cents, or 0.5 percent, at
$6.89-1/4 a bushel.
Cocoa slumped in a technically-driven long liquidation.
ICE Futures' most active cocoa contract, December CCZ3,
settled down $53, or nearly 2 percent, at $2,585 a tonne in New
York. It was the contract's sharpest one-day decline since Aug
Prices at 3:17 p.m. EDT (1917 GMT)
LAST/ NET PCT YTD
CLOSE CHG CHG CHG
US crude 103.00 -1.10 -1.1% 12.2%
Brent crude 108.62 -0.57 -0.5% -2.2%
Natural gas 3.499 -0.043 -1.2% 4.4%
US gold 1317.60 -3.10 -0.2% -21.4%
Gold 1316.30 1.66 0.1% -21.4%
US Copper 3.26 -0.05 -1.5% -10.7%
LME Copper 7185.00 -94.00 -1.3% -9.4%
Dollar 79.774 -0.126 -0.2% 3.9%
CRB 285.552 -0.891 -0.3% -3.2%
US corn 439.25 0.25 0.1% -37.1%
US soybeans 1288.25 13.25 1.0% -9.2%
US wheat 689.25 3.25 0.5% -11.4%
US Coffee 115.35 0.90 0.8% -19.8%
US Cocoa 2585.00 -47.00 -1.8% 15.6%
US Sugar 17.48 0.00 0.0% -10.4%
US silver 21.739 21.521 1.6% -28.1%
US platinum 1369.50 -20.30 0.0% -11.0%
US palladium 699.20 -21.00 -2.9% -0.6%