NEW YORK, New York (Reuters) — Commodities rebounded broadly April 8 for the first time in a week, with grains, metals and oil prices rising on technical buying and hopes for growing demand.
Wheat, along with gasoline, cocoa and sugar were among the biggest gainers. Each rose about two percent or more. Soybeans gained about one percent, rebounding from a nine-month low.
The Thomson Reuters-Jefferies CRB index, the commodities bellwether that tracks 19 markets, rose 0.3 percent with more than a dozen of its components settling in the positive territory.
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Soybean futures on the Chicago Board of Trade snapped losses from three straight sessions as the market’s front-month contract, May, closed up 16 1/4 cents at $13.78 a bushel.
Traders said soybeans were buoyed by technical buying and worries that delays in the South American harvest will further slow delivery of supplies from Argentina and Brazil.
May wheat settled up 13 1/2 cents at $7.12 1/2 a bu. on strong global demand for U.S. supplies, as well as concerns about potential damage to the developing crop in the U.S. Plains from forecasts for a turn to colder weather.
May corn ended up 4 1/2 cents at $6.33 1/2 a bu. as wet weather in key growing areas across the U.S. Midwest threatened to delay the start of planting this week in places such as Illinois and Iowa.
“More than anything, it was just short covering,” said Karl Setzer, analyst for MaxYield Cooperative, referring to the broad rally.
“We really kind of pounded the grains last week.”
Oil prices edged higher, lifted by gains in gasoline futures and strong selling of the spread between Brent crude and U.S. crude.
Gold slipped more than half a percent, losing the safe-haven edge that pushed it higher during last week’s rout across commodities.
“We are going to hold here until that next catalyst comes,” Phillip Streible, gold trader and senior commodities broker at RJ O’Brien in Chicago, said.
Arabica coffee fell three percent to a near 33 month low reached three weeks ago on expectations of an abundant off-year crop in top producing nation Brazil.
Natural gas slid one percent, unwinding some of last week’s strong gains as warm spring weather signaled the end of winter heating demand that had propelled gas prices over the past few months. Gas has been the best performing commodity so far this year, gaining 20 percent in the first quarter.
