By Barani Krishnan
NEW YORK, Sept 30 (Reuters) - Oil and metals fell on Monday
on fears of an imminent U.S. government shutdown and grains
tumbled on oversupply concerns, while gold slipped for the
session amid strong quarterly gains.
The weaker U.S. dollar was little help to commodities priced
in the currency as investors focused on the broader implications
for business if Washington's budget crisis passed a midnight
deadline without solution.
Analysts caution that a government shutdown would have a
wide-ranging impact on most types of assets. If a deal were
reached quickly, markets might recover, but a prolonged shutdown
could do significant harm to the economy and consumer
The Thomson Reuters-Jefferies CRB index, a
bellwether for commodities, finished down half a percent for the
session after 10 of the 19 markets on the index ended in the
For the third quarter, the CRB was up nearly 4 percent for
its best quarterly performance in a year. For September, the
index finished down 2 percent.
Gold was the star performer in the quarter. The spot price
of bullion traded at above $1,328 an ounce, up 8 percent
on the quarter, the most over a three-month period since an 11
percent gain in the third quarter of 2012.
Despite such gains, the precious metal is down 20 percent on
the year, with market forecasters pinning a recovery on the
extension of the U.S. monetary stimulus.
At its September meeting, the U.S. Federal Reserve stuck
with its bond-buying programme, surprising markets which had
expected a small reduction from this month. The Fed meets next
on Oct. 29-30.
"It seems to us that the central bank will likely stand pat
again, perhaps not wanting to take two completely different
directional views on rate policy in the span of just 30 days,"
INTL FCStone analyst Edward Meir said in a note.
In oil, benchmark Brent crude out of Europe's North
Sea finished the session down a quarter percent at $108.37 a
barrel. U.S. crude settled down half a percent at
Copper's key three-month contract in London ended at
$7,302 a tonne, a touch higher versus Friday's close of $7,300.
U.S. corn plunged to a three-year low and soybeans
slid to a five-week low after a government crop report
surprised traders by showing larger-than-expected stocks of both
Raw sugar prices jumped, taking back the previous
session's steep losses, on concerns that rain in top grower
Brazil will delay harvest.
Prices at 3:25 p.m. EDT (1925 GMT)
LAST/ NET PCT YTD
CLOSE CHG CHG CHG
US crude 102.46 -0.41 -0.4% 11.6%
Brent crude 108.46 -0.17 -0.2% -2.4%
Natural gas 3.560 -0.029 -0.8% 6.2%
US gold 1327.00 -12.20 -0.9% -20.8%
Gold 1329.41 -6.30 -0.5% -20.6%
US Copper 3.32 0.00 -0.1% -9.1%
LME Copper 7302.00 2.00 0.0% -7.9%
Dollar 80.222 -0.065 -0.1% 4.5%
CRB 285.541 -1.434 -0.5% -3.2%
US corn 441.50 -12.50 -2.8% -36.8%
US soybeans 1282.75 -37.00 -2.8% -9.6%
US wheat 678.50 -4.50 -0.7% -12.8%
US Coffee 113.70 0.00 0.0% -20.9%
US Cocoa 2640.00 1.00 0.0% 18.1%
US Sugar 17.48 0.61 3.6% -10.4%
US silver 21.656 21.438 1.6% -28.4%
US platinum 1408.10 -6.80 0.0% -8.5%
US palladium 726.15 -4.65 -0.6% 3.2%
- Commodity Markets
- government shutdown