Most commodity prices fall on Greece debt woes

NEW YORK—Commodity prices fell broadly yesterday after a plan to fix Greece’s crippling debt crisis suffered a setback, renewing concerns about global economic growth. Investors sold commodities futures as a precaution in case there are developments over the weekend. Greece needs a fresh injection of bailout money from the other 16 countries that use the euro. Government leaders crafted a plan to cut government spending but European finance ministers have demanded deeper cuts.

A key vote on the austerity measures is set tomorrow in the Greek parliament despite public protests. Without approval of the plan, the country could default on its debt March 20. Investors are concerned that the lack of an agreement in Greece could hurt neighbouring countries and the European economy, which could affect global economic growth and demand for commodities. Commodities also were hurt because the Greek crisis caused the euro to weaken against the dollar. Since commodities are priced in dollars, a stronger dollar makes them more expensive for buyers who use other currencies.

Gold for April delivery fell US$15.90 to end at US$1,725.30 an ounce. In other trading, copper prices declined after preliminary January trade data showed China’s imports declined, Barclays Capital analysts said in a report to clients. China’s imports of refined copper alloy and products fell 19 per cent in January from December’s total. Copper scrap imports also dropped, Barclays Capital said. China is a huge importer of metals like copper that are used for infrastructure, construction and electronics, among other products.

In March contracts, copper fell 11.65 cents, or three per cent, to finish at US$3.862 per pound, silver declined 31.3 cents to US$33.604 per ounce and palladium ended down US$8.25 at US$703.05 per ounce. April platinum fell US$7.80 to end at US$1,659.80 an ounce. Benchmark crude fell US$1.17 to finish at US$98.67 per barrel on the New York Mercantile Exchange. Heating oil decreased 2.64 cents to finish at US$3.1821 per gallon, gasoline futures declined 3.79 cents to US$2.9749 per gallon and natural gas was unchanged at US$2.477 per 1,000 cubic feet. In March agriculture contracts, wheat fell 16 cents, or 2.5 per cent, to US$6.30 per bushel, corn declined 5.25 cents to US$6.3175 per bushel and soybeans rose 1.5 cents to US$12.29 per bushel.

AP