* CRB down 2.8 pct on the week, sharpest weekly drop since
* Gold down 7 pct on week, biggest such decline in 2 years
* Copper down for 3rd week in row, losing 4 percent
* Oil has biggest two-day decline since June 2012
By Barani Krishnan
NEW YORK, June 21 Crude oil extended its drop on
Friday and copper and gold rebounded, but most commodities
posted sharp weekly losses after tumbling in the previous
session on bleak Chinese data and plans by the U.S. Federal
Reserve to cut stimulus efforts.
Grains markets were down for a second straight day, with
corn in the deepest rut.
Coffee and sugar prices rose, helping the
broader commodities complex consolidate its weekly loss.
Even so, the 19-commodity Thomson Reuters-Jefferies CRB
index finished the week down 2.8 percent for its
sharpest weekly decline since October.
Commodity prices barely moved earlier this week, but skidded
on Wednesday and Thursday after Fed Chairman Ben Bernanke
outlined a possible timeline for the central bank's winding down
of its U.S. stimulus program.
The flood of easy money created by the Fed since the
2008-2009 financial crisis has been integral to rallies in gold
and other commodities. Bernanke indicated the stimulus programs
could stop by mid-2014 if the U.S. economy is strong enough.
Worries about slowing factory activity in No. 2 economy
China also rocked markets on Thursday. The CRB fell almost 3
percent for that session alone, its sharpest one-day drop in 18
On Friday, the spot price of gold hovered above
$1,294 an ounce, up 1.3 percent on the day, but down almost 7
percent on the week for its sharpest weekly loss in nearly 2
Copper fell for a third week in a row after hitting a
20-month low on Thursday. The three-month futures contract
in London closed at $6,818 a tonne, up nearly 1 percent
for the session and down 4 percent for the week.
Oil's benchmark Brent crude out of Europe's North Sea
finished with its biggest two-day drop since June 2012.
Brent settled at $100.91 a barrel, down 1.2 percent on
the day and 6.4 percent on the week.
U.S. crude finished at $93.69, down 1.5 percent on
the day and 4 percent on the week.
"Without quantitative easing and strong China demand, the
oil bull story evaporates," said Phil Flynn, energy analyst at
Price Futures Group in Chicago, Illinois.
"The only thing you have left is potential geopolitical risk
or weather risk, which at this point seems to be coming down a
Prices at 3:18 p.m. EDT (1918 GMT)
LAST/ NET PCT YTD
CLOSE CHG CHG CHG
US crude 94.03 -1.11 -1.2% 2.4%
Brent crude 101.02 -1.13 -1.1% -9.1%
Natural gas 3.771 -0.106 -2.7% 12.5%
US gold 1292.00 5.80 0.5% -22.9%
Gold 1294.86 17.12 1.3% -22.7%
US Copper 3.10 0.03 1.1% -15.2%
LME Copper 6818.00 48.00 0.7% -14.0%
Dollar 82.306 0.391 0.5% 7.2%
CRB 278.080 -1.489 -0.5% -5.7%
US corn 661.75 -11.50 -1.7% -5.2%
US soybeans 1493.25 -4.25 -0.3% 5.3%
US wheat 698.00 -2.50 -0.4% -10.3%
US Coffee 118.70 1.05 0.9% -17.5%
US Cocoa 2171.00 -1.00 0.0% -2.9%
US Sugar 16.74 0.36 2.2% -14.2%
US silver 19.959 19.761 1.5% -34.0%
US platinum 1369.50 5.70 0.0% -11.0%
US palladium 673.25 9.70 1.5% -4.3%