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COMMODITIES-Metals, energy drop as dollar gains on Yellen nomination
October 9, 2013 / 9:46 PM / in 4 years

COMMODITIES-Metals, energy drop as dollar gains on Yellen nomination

By Carole Vaporean
    NEW YORK, Oct 9 (Reuters) - Nearly all commodity markets
fell on Wednesday, with metal and energy components among the
biggest losers as the dollar bounced up off an eight-month low
after news that Janet Yellen would soon be nominated for the top
Federal Reserve post.
    The Thomson Reuters-Jefferies CRB gauge slid 0.87
percent, with 17 of the 19 commodity markets in the bellwether
index, ending lower. Just corn and coffee posted modest gains.
    Gold futures settled about 1 percent lower after sliding 1.5
percent to a one-week low during the session, as the dollar rose
following news that Fed Vice Chair Yellen would be nominated as
the next chief of the U.S. central bank, which removed some
uncertainty in financial markets. 
    U.S. President Barack Obama nominated Yellen late in the New
York session. If confirmed by the U.S. Senate, she will replace
Ben Bernanke, whose second term as Fed chairman ends on Jan. 31.
 
    Also in the afternoon, minutes from the Fed's September
meeting revealed the decision to maintain stimulus was a "close
call," suggesting broad support remained to cut bond-buying this
year. The dollar added to its gains and bullion cut some losses
in light volume. 
    Many gold buyers kept to the sideline, due to anxiety over
how the debt stand-off in Washington will play out, as a U.S.
government shutdown continues.
    "This lack of response to the U.S. shutdown may mask an
underlying negative investor sentiment," said James Steel, chief
precious metals analyst at HSBC. "At the very least gold's
safe-haven bid is lacking."
    Spot gold was down 1.02 percent at $1,304.69 an ounce
by 4:32 p.m. EDT (2032 GMT), after falling to a one week low at
$1,294.04. U.S. gold futures GCZ3 for December delivery settled
down $17.40 an ounce to $1,307.20. 
    Global oil prices dropped after a report showing the largest
weekly buildup of U.S. crude stocks in a year weighed further on
a market already concerned that a budget impasse in Washington
would curb demand in the world's biggest oil consumer. The
dollar's rise also pressured crude prices.
    Data from the U.S. Energy Information Administration (EIA)
showed U.S. crude inventories shot up nearly 7 million barrels
last week, their largest weekly gain since September 2012, and
well above forecasts. 
    Brent crude settled $1.66 lower at $108.50 a barrel,
for a 1 percent decline. U.S. oil ended down $1.88 at
$101.61 per barrel, a 1.82 percent loss.
    "I don't think anyone was looking for that big of an
increase. We have higher production (in the United States) and
imports were far more than we need," said Andy Lebow, vice
president at Jefferies Bache in New York.
    Copper dropped to its lowest in three weeks on the dollar
rise and as the U.S. fiscal deadlock eroded appetite for
risk-associated assets. Benchmark three-month copper 
closed ring trading down 1.9 percent at $7,100 per tonne.
 
    In Chicago, U.S. corn futures rose in reaction to firm
export demand and to traders exiting bearish bets as the feed
grain traded near three-year lows. 
    Soybean futures were pressures from the ongoing U.S.
harvest, while a mild round of profit-taking pushed wheat prices
beneath a 3-1/2 month high.
    Volume in all three markets was squelched by the partial
shutdown of the U.S. federal government as the U.S. Agriculture
Department was not issuing its regular supply/demand reports.
    Cocoa futures hit a 13-month high before finishing lower. It
had been lifted by expectations that a rise in European
third-quarter grind data due this week would show firm demand.
 
        
 Prices at 4:01 p.m. EDT (2001 GMT)      
                              LAST/      NET    PCT     YTD
                              CLOSE      CHG    CHG     CHG
 US crude                    101.42    -2.07  -2.0%   10.5%
 Brent crude                 108.91    -1.25  -1.1%   -2.0%
 Natural gas                  3.679   -0.037  -1.0%    9.8%
 
 US gold                    1307.20   -17.40  -1.3%  -22.0%
 Gold                       1305.16   -13.14  -1.0%  -22.0%
 US Copper                     3.22    -0.06  -1.8%  -11.8%
 LME Copper                 7099.50  -140.00  -1.9%  -10.5%
 Dollar                      80.365    0.304   0.4%    4.7%
 CRB                        285.504   -2.501  -0.9%   -3.2%
 
 US corn                     443.50     2.00   0.5%  -36.5%
 US soybeans                1287.75    -1.00  -0.1%   -9.2%
 US wheat                    690.50    -3.00  -0.4%  -11.2%
 
 US Coffee                   115.25     0.20   0.2%  -19.9%
 US Cocoa                   2703.00   -15.00  -0.6%   20.9%
 US Sugar                     18.59    -0.03  -0.2%   -4.7%
 
 US silver                   21.846   21.622   1.6%  -27.7%
 US platinum                1379.50   -20.70   0.0%  -10.3%
 US palladium                703.10   -10.80  -1.5%    0.0%

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