As reported by Bloomberg’s Isis Almeida and Kim Kyoungwha:
The Standard & Poor’s GSCI Index of 24 raw materials gained 2.7 percent to settle at 691.04 at 3:47 p.m. in New York, the biggest advance since May 9. Wheat led the rally, jumping 6.9 percent, while sugar surged 4.2 percent, crude oil climbed 3.3 percent and copper rose 3 percent.
Commodities are up for a third straight year since the recession of 2008, fueled by demand in China and India and disruptions of supply from mines to farms. France’s soft-wheat harvest, the largest in the European Union, will decline 12 percent as drought hurts yields, farm adviser Agritel said today. U.S. gasoline supplies fell last week, the American Petroleum Institute said yesterday.
“Given the fundamentals in a lot of these markets, it’s probably a good time to come in and buy,” said Keith Flury, an analyst at Rabobank International in London. “There are worries that supply isn’t sufficient to meet demand.”
The GSCI index fell 11 percent in the first week of this month, the most since December 2008, as speculators reduced their positions in everything from copper to oil on mounting concern that global growth is slowing. At least two dozen nations and the European Central Bank raised rates this year, data compiled by Bloomberg show.