Commodities Climb to Six-Month High as Crude Advances With Crops
Source: Bloomberg News
Commodities advanced to the highest level in almost six months as escalating tension in Ukraine fueled concern that energy and agricultural supplies will be disrupted while increasing demand for gold as a haven.
The Standard & Poor’s GSCI Index (SPGSCI) of 24 raw materials climbed as much as 1.2 percent to 657.48, the highest level since Sept. 9, and was at 657.25 at 12:28 p.m. Monday in Singapore. Brent crude in London jumped 1.5 percent, wheat in Chicago surged 3.9 percent, while gold futures in New York increased 1.6 percent. Natural gas and corn also advanced.
... “If the situation is not defused, it has the potential to spark wider economic turmoil through higher oil and gas prices, trade sanctions and a general ratcheting up of global tensions that could endanger the fragile global economic recovery,” Edward Meir, an analyst at INTL FCStone Inc. in New York, wrote in a note today. “All this means that gold will likely do better over the short term.”
... Corn gained as much as 2.2 percent to $4.7375 a bushel in Chicago, the highest price for a most-active contract since September, while wheat increased to the highest level since December. Ukraine is set to be the third-biggest corn shipper and the sixth-largest wheat exporter this year, according to the International Grains Council.
Read more: http://www.businessweek.com/news/2014-03-03/commodities-climb-to-six-month-high-as-crude-advances-with-crops
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