U.S. Commodities: Copper Closes at Record High on China Imports

Copper futures closed at a record high after imports by China rebounded from the lowest level in a year.

Shipments of copper and products into China, the world’s largest user, rose 29 percent in November to 351,597 metric tons from October. Total imports in the 11 months ended Nov. 30 gained 0.7 percent to 3.95 million tons. Copper has jumped 43 percent since July 1, partly on demand from emerging markets.

The data on China “is sparking some buying and showing the markets that the economic juggernaut still seems to be powering forward,” Edward Meir, a senior commodity analyst at MF Global Holdings Ltd. in Darien, Connecticut, said in a report.

In other markets, cocoa tumbled on speculation that the disputed presidential election in Ivory Coast, the world’s largest grower, will have little effect on output. Gold also fell. The UBS Bloomberg Constant Maturity Commodity Index dropped 0.3 percent to 1,560.17.

Copper futures for March delivery rose 2.5 cents, or 0.6 percent, to close at $4.112 a pound on the Comex in New York. The price climbed 2.8 percent this week.

Yesterday, the metal reached $4.1545, the highest since May 5, 2008, when it touched an intraday record of $4.2605.

Inventories monitored by the London Metal Exchange have dropped every week since late February, falling 31 percent this year.

Cocoa

In New York, cocoa for March delivery slumped $123, or 4.1 percent, to settle at $2,887 a ton on ICE Futures U.S., the biggest drop since July 19. The price has dropped 12 percent in 2010.

On NYSE Liffe in London, cocoa futures for March delivery declined 93 pounds, or 4.7 percent, to close at 1,899 pounds （$3,001） a metric ton, the biggest drop since April 6, 2009.

Production in Africa will climb 6.7 percent to almost 2.6 million metric tons in the year that started Oct. 1, ABN Amro Bank NV and VM Group said today in a report. The United Nations- backed Ivory Coast government under Alassane Ouattara asked civil servants and the military to stop working with Laurent Gbagbo, who claimed victory from the Nov. 28 vote.

“The political situation in the Ivory Coast had the potential to trigger some short-term supply issues, but the reality is crops in western Africa are excellent,” said Emmanuel Jayet, the head of agriculture commodities at Societe Generale SA in London.

Gold

Gold futures fell, capping the biggest weekly loss in a month, as concern that China may tighten monetary policy eroded demand for precious metals.

China, the world’s second-biggest gold buyer, ordered lenders to park more money with the central bank for the third time in five weeks. The metal has climbed 26 percent this year, reaching a record $1,432.50 an ounce on Dec. 7.

“Gold is temporarily moving lower on China’s attempt to slow down its economy,” said Marty McNeill, a trader at R.F. Lafferty & Co. Inc. in New York. “A lot of the hot money has been going to China, so when it starts to break down, gold is going to get sold off with other commodities.”

Gold futures for February delivery fell $7.90, or 0.6 percent, to settle at $1,384.90 on the Comex. This week, the metal dropped 1.5 percent, the most since mid-November.

A rate increase by China’s central bank “would diminish the ability of Chinese consumers to use excess income on investments like gold, as well as their ability to buy other commodities,” said Tom Pawlicki, an analyst at MF Global in Chicago.

Commodities settled as follows:

Precious metals: February gold down $7.90 to $1,384.90 an ounce March silver down 21.2 cents to $28.605 an ounce January platinum down $3.60 to $1,675.30 an ounce March palladium down $8.90 to $732.70 an ounce

Livestock: February live cattle down 0.675 cent to $1.0395 a pound January feeder cattle up 0.1 cent to $1.18175 a pound February lean hogs down 0.75 cent to 75.15 cents a pound February pork bellies up 0.5 cent to $1.05 a pound

Grains: January soybeans down 8.5 cents to $12.73 a bushel March corn unchanged at to $5.7425 a bushel March wheat down 13 cents to $7.755 a bushel March oats up 3 cents to $3.85 a bushel

Food and Fiber: March coffee up 5.05 cents to $2.096 a pound March cocoa down $123 to $2,887 a metric ton March cotton up 1.02 cents to $1.3697 a pound March sugar up 0.42 cent to 29.13 cents a pound January orange juice down 1.85 cents to $1.606 a pound

Energy: January crude oil down 58 cents to $87.79 a barrel January natural gas down 1.8 cents to $4.417 per million British thermal units January heating oil down 0.93 cent to $2.4575 a gallon January gasoline down 3.12 cents to $2.3093 a gallon

Others: March copper up 2.5 cents to $4.112 a pound March lumber up $2.30 to $286.00 per 1,000 board feet