Most commodities prices hurt by flu fears

Crude oil prices were lower on concerns that the swine flu outbreak that began in Mexico and has spread to other parts of the world will cut demand by discouraging people from traveling.

June contracts for West Texas Intermediate crude fell $1.41 to $50.14 per barrel on the New York mercantile exchange while Brent crude was $1.39 lower to $50.28 per barrel on the ICE Futures Europe exchange in London.

Nymex May gasoline futures and June heating oil futures each fell 4 cents in afternoon trade, to $1.40 per gallon and $1.34 per gallon respectively, while June natural gas futures also dropped 4 cents to $3.37 per million British thermal units.

The price of copper fell was also lower on worries that demand will decline if the spread of swine flu slows down efforts to help the global economy recover from the recession.

July copper was down 4 cents to $1.99 per pound and dropped as low as $1.95 per pound earlier in the day in New York, while three-month copper was $144.75 lower to $4,355.25 per tonne, or $1.98 per pound, on the London Metal Exchange.

Gold prices were down on gains for the US dollar.

June gold fell $5.90 to $908.20 per troy ounce in New York and July platinum dropped $28.40 to $1,150.30 per troy ounce but July silver added 4 cents to $12.99 per troy ounce.

Grains fell on concerns that the flu outbreak could cut demand for livestock feed if consumers cut back on pork consumption as a result of concerns about catching the disease.

May corn on the Chicago Board of Trade fell 4 cents to $3.72 per bushel while CBOT May wheat was down 24 cents to $5.08 per bushel and May soybeans dropped 35 cents to $10.04 per bushel.

On the Chicago Mercantile Exchange, meanwhile, June lean hogs and July pork bellies each dropped 3 cents, to 69 cents per pound and 81 cents per pound respectively.

Story link: Most commodities prices hurt by flu fears