* Oil and gold rise by half a pct, copper 1 pct
* Coffee at Sept 2009 lows on supply glut fears
* Corn down as USDA crop reduction below expectations
By Barani Krishnan
NEW YORK, June 12 Oil, copper and gold prices
rose on Wednesday, rebounding from the previous session's losses
triggered by worries over economic stimulus, while coffee neared
a 4-year low and corn tumbled too on fears of oversupply.
Cotton jumped more than 2 percent, leading gains for
the day and rallying for a third session in a row after the U.S.
Department of Agriculture slashed production estimates for the
The dollar fell to its lowest in nearly four months against
a basket of major currencies, weighed by uncertainty on when the
Federal Reserve will pare back its ultra-loose monetary policy.
The weaker dollar limited the downside for commodities that
had posted losses on the day and were denominated in the U.S.
currency. Thomson Reuters-Jefferies CRB index, a
globally-watched indicator that tracks 19 commodities, closed
flat for its first positive finish in three days.
Analysts said volatility in commodity and other financial
markets might continue until the Fed's meeting next week and an
accompanying statement from Fed Chairman Ben Bernanke on
"NO SAFE HAVEN"
"Interestingly, there has been no 'safe haven' to run into
so far in June, as various complexes have each rotated through
respective bouts of weakness," Edward Meir, a base metals
analyst at INTL FCStone, wrote in his daily commentary.
Oil prices closed up half a percent, supported by worries
over global supply disruptions.
But gains were capped by an unexpected jump in U.S. crude
stockpiles and lower estimates for oil demand growth.
The International Energy Agency said modest economic growth
was limiting oil demand worldwide and some developed economies
would see absolute declines in oil consumption in 2013.
At the same time, production by the Organization of the
Petroleum Exporting Countries (OPEC) was rising, outstripping
demand for its oil, with big increases recently in output from
Saudi Arabia, Iran and other Middle East Gulf producers.
Oil's benchmark Brent crude out of Europe's North
Sea settled up 53 cents at $103.49 per barrel.
New York-traded U.S. crude finished up 50 cents at
$95.88 a barrel.
Copper rose off its lowest level in almost six weeks on
concerns over supply tightness after the owner of the world's
second-largest mine declared force majeure on copper deliveries.
Freeport-McMoRan Copper & Gold Inc FCX.N declared force
majeure on deliveries of copper concentrate from its Grasberg
mine in Indonesia, where work has been suspended since an
accident in May that killed 28 people.
Freeport said the production halt has curbed output by some
80 million pounds of copper and it is not clear when Grasberg
will be reopened.
Copper's key three-month futures contract in London
closed up almost 1 percent at $7,120 per tonne. For the year
though, the contract is still down around 10 percent.
In gold, the spot price of bullion rose by 0.6 percent to
around $1,388 an ounce by 4:00 p.m. EDT (2000 GMT).
An absence of new outflows from SPDR Gold Trust, the
world's largest bullion-backed exchange-traded fund, boosted
sentiment, analysts for precious metals said.
"It's a sign that the worst of the money outflows in the
gold market is over," said Bill O'Neill, a partner at
commodities investment firm LOGIC Advisors. "We are still not
out of the woods, but at least it shows that the gloom-and-doom
forecast of $1,000 gold is unrealistic for now."
Arabica coffee fell more than 5 percent, its biggest daily
decline in almost five months as funds kept selling due to ample
September arabica futures fell to as low as $1.228
per lb, their weakest since early September 2009. Selling
accelerated after prices plunged through previous multi-year
lows at $1.27 and then support levels at $1.25.
"The bottom line is this: we're in an over supplied market,"
said Nick Gentile, a senior partner at commodity trading
consultancy Atlantic Capital Advisors who follows coffee.
Corn fell more than 2 percent for its biggest daily drop in
a month, caught off guard by a less-than-expected reduction in
production estimates released by the U.S. government.
Futures for the new U.S. corn crop, slated for delivery in
December, settled down 2.4 percent at $5.37-1/2 a bushel
in Chicago trade.
Prices at 4:15 p.m. EDT (2015 GMT)
LAST/ NET PCT YTD
CLOSE CHG CHG CHG
US crude 95.83 0.45 0.5% 4.4%
Brent crude 103.53 0.57 0.6% -6.8%
Natural gas 3.777 0.053 1.4% 12.7%
US gold 1392.00 15.00 1.1% -16.9%
Gold 1389.26 10.27 0.7% -17.0%
US Copper 3.23 0.03 1.0% -11.7%
LME Copper 7120.00 55.00 0.8% -10.2%
Dollar 80.984 -0.129 -0.2% 5.5%
CRB 285.223 0.217 0.1% -3.3%
US corn 650.75 -8.75 -1.3% -6.8%
US soybeans 1540.75 0.25 0.0% 8.6%
US wheat 683.00 -13.75 -2.0% -12.2%
US Coffee 122.75 -4.95 -3.9% -14.6%
US Cocoa 2372.00 17.00 0.7% 6.1%
US Sugar 16.21 -0.08 -0.5% -16.9%
US silver 21.796 21.580 1.6% -27.9%
US platinum 1482.30 2.40 0.0% -3.7%
US palladium 755.25 4.50 0.6% 7.4%
(Editing by Andre Grenon)