* Brent oil falls more than 1 pct, giving up Tuesday's gains
* Gold drops for fifth day in six; copper slides ahead of
* Grains decline before USDA report on Friday
* Coming Up: Aug U.S. durable goods orders; 1230 GMT
By Jane Lee
SINGAPORE, Sept 28 Commodities fell on
Wednesday, giving up their biggest daily gain in more than six
months racked up the previous day, as investors flocked to the
U.S. dollar on concern data may signal slowing economic growth.
Doubts over Europe's commitment to its plan to expand a
rescue fund also caused the dollar to strengthen against the
euro, making gold, copper, grains and crude oil more expensive
for buyers paying in other currencies.
"There are still a lot of fears over Europe," said Ken
Hasegawa, a commodities derivatives manager with Newedge
Brokerage in Tokyo.
Markets are watching for U.S. durable goods orders for
August, due later on Wednesday, which a Reuters poll estimated
would be flat following a rise of 4.1 percent in July.
The 19-commodity Reuters-Jefferies CRB index rose 2.7
percent on Tuesday in its biggest daily gain in more than six
Hurdles Greece faces in its attempt to avoid bankruptcy and
disagreements among euro zone nations have sparked concern among
investors that growth won't recover anytime soon.
An audit team from the European Union, European Central Bank
and the International Monetary Fund is expected to start
arriving in Athens on Wednesday and begin talks the day after on
the Greek government's plan to deepen budget cuts and raise new
Data on Tuesday showed that Americans worried about their
incomes as they struggled to find work in September, holding
consumer confidence near 2-1/2-year lows and pointing to weak
spending in the months ahead.
Brent crude futures LCOc1 lost $1.21 to $105.93 a barrel
by 0539 GMT. U.S. crude CLc1 shed $1.56 to $82.89 a barrel.
Oil prices jumped more than 3 percent on Tuesday.
Brent is poised to fall 5.5 percent in the third quarter,
according to Reuters market analyst Wang Tao.
That's the second quarterly decline, and the steepest since
the three months ended June 2010. U.S. crude is set to lose
almost 13 percent this quarter, its largest drop since the
fourth quarter of 2008.
Precious metals were also pushed lower, after gains in the
past few months prompted investors to take profit as risks of
slower growth persist.
Spot gold fell $11.91 to $1,636.99 an ounce, down for
a fifth day in six. It had tumbled to a two-month low of
$1,534.49 on Monday -- down from a lifetime high around $1,920
an ounce struck in early September.
Three-month copper on the London Metal Exchange fell
3.3 percent to $7,345 a tonne, after surging 4.5 percent in the
previous session. That was its biggest jump in 19 months.
Market players said Shanghai copper prices were supported by
a surge of speculative activities before a week-long national
holiday starting early October.
"The holiday is coming up and everyone is out to make a
quick buck before that," Zhou Jie, an analyst at CIFCO Futures,
said in Shanghai.
"The shorts are closing positions, locking in profits, while
others are doing arbitrage plays -- buying copper on Shanghai
and selling on London."
USDA STOCKPILE REPORT
Grains also fell, with investors looking to the U.S.
Department of Agriculture's quarterly stocks report on Friday
for signs that consumption may wane.
Wheat for December fell for the first day in four,
easing 0.5 percent to $6.54-3/4 per bushel. Declines were
limited by concern that drought may hamper seeding of U.S.
winter wheat crop, traders said.
Soy for November lost 0.9 percent to $12.52-1/4,
headed for a second quarter of declines.
Corn for December fell 0.8 percent to $6.47-1/4 per
bushel, erasing Tuesday's gains. The grain has risen 2.9 percent
this year, compared with declines in soy and wheat.
"There are expectations that the USDA may report a
larger-than-expected supply on corn," said Lynette Tan, a grains
analyst at Phillip Futures in Singapore.
"In the past week, the fall in grains is due to
macro-economic issues, with people worried about a slowdown in
growth and the crisis in the euro zone. Usually, when macro
sentiments are strong, investors tend to ignore the
(With additional reporting by Francis Kan, Lewa Pardomuan and
Carrie Ho; Editing by Clarence Fernandez)