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COMMODITIES-Markets tumble on JPMorgan, China and Greece
May 11, 2012 / 8:11 PM / 6 years ago

COMMODITIES-Markets tumble on JPMorgan, China and Greece

* CRB posts biggest two-week slide in 2012
    * Soybeans have sharpest weekly decline since Nov
    * Copper, oil down for a second week
    * Gold plumbs four-month lows

    By Barani Krishnan	
    NEW YORK, May 11 (Reuters) - Commodities fell on Friday,
notching the biggest two-week loss of 2012 after top U.S. bank
JPMorgan Chase & Co shocked the market by reporting huge trading
losses, fueling risk aversion among investors already worried
about the global economy.	
     JPMorgan's trading loss of at least $2 billion from a
failed hedging strategy hammered financial stocks and also
sparked more long liquidation in markets from soybeans to copper
and oil by investors already worried about Greece's political
woes and China's slowing growth.	
    "This is certainly not helping the bull case," said Michael
Gross, a commodity futures analyst at Optionsellers.com in
Tampa, Florida.	
    The Thomson Reuters-Jefferies CRB index, a global
benchmark for commodities, settled down nearly 1 percent down,
and was off almost 2 percent for the week. The CRB's two-week
slide was the biggest of the year at 5 percent, Reuters data
showed.	
    Soybeans had their sharpest weekly decline in more than five
 months, losing nearly 5 percent to close below $15 per bushel.
Corn fell to 14-month lows, settling below $5.90 a bushel.	
    The selloff in grains came after worries about another
flare-up in Greece's debt problems after elections in Athens
last week, and an uncertain regulatory environment for U.S.
banks after the trading misstep at J.P. Morgan. 	
    Copper slid for a second week, closing at $8,013 a tonne in
London, after top metals buyer China reported a slump in
industrial production in April. The data, which also
revealed investments in China slowing to near a decade-low,
showed the No. 2 economy surprisingly vulnerable to the global
economic slowdown and credit crunch at home. 	
    Oil fell for a second week too although a strong reading for
U.S. consumer confidence helped crude prices pare some losses.
 	
    U.S. crude settled at $96.13 a barrel, down about 1
percent on the day and more than 8 percent lower compared to two
weeks ago.	
    Brent crude in London finished at $112.26, off 0.4
percent in Friday's trade and off more than 6 percent from two
weeks earlier. 	
    Gold sank to four-month lows, pressured by the
dollar's strength against the euro and other major currencies.	
    The euro hovered near a 3-1/2 month low against the
dollar and looked set to weaken further on news that Greek
Socialist party leader Evangelos Venizelos could not form a
national unity government in talks with rivals after last week's
elections.  	
    "May is turning into a trouble month for investors in most
asset classes once again. Gold, offering high liquidity, is
being hurt by the need to realize cash and move to the
sidelines," Saxo Bank vice president Ole Hansen said.	
    The spot price of gold, which tracks trades in
bullion, hovered around $1,580 an ounce, down nearly 1 percent
on the day and almost 4 percent off for the week. 	
 Prices at 3:39 p.m. EDT (1939 GMT)      
                             LAST/      NET    PCT     YTD
                             CLOSE      CHG    CHG     CHG
 US crude                    95.83    -1.25  -1.3%   -3.0%
 Brent crude                112.20    -0.53  -0.5%    4.5%
 Natural gas                 2.509    0.022   0.9%  -16.1%
 
 US gold                   1584.00   -11.50  -0.7%    1.1%
 Gold                      1579.56   -14.17  -0.9%    1.0%
 US Copper                  364.80    -4.25  -1.2%    6.2%
                              
 Dollar                     80.293    0.181   0.2%    0.1%
 CRB                       291.800   -2.790  -1.0%   -4.4%
 
 US corn                    608.00   -17.50  -2.8%   -6.0%
 US soybeans               1404.00   -48.25  -3.3%   17.1%
 US wheat                   592.75    -2.00  -0.3%   -9.2%
 
 US Coffee                  176.55    -1.95  -1.1%  -22.6%
 US Cocoa                  2319.00   -19.00  -0.8%   10.0%
 US Sugar                    20.22    -0.23  -1.1%  -13.0%
 
 US silver                  28.858   -0.278  -1.0%    3.4%
 US platinum               1471.40   -22.40  -1.5%    4.7%
 US palladium               603.40   -11.95  -1.9%   -8.0%

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