Gold, silver rally; soybeans rise on crop report

AP News
Posted: Aug 12, 2013 5:33 PM

Soybean and corn futures rose Monday after the U.S. reduced its estimates of crop yields. Gold and silver prices rose on reports of higher demand from China.

Energy prices ended mixed.

Soybeans for November delivery rose 43 cents to $12.2525 a bushel after the U.S. Department of Agriculture predicted crop yields that were below what the market was expecting.

"The USDA was estimating a record yield for this year's crop, but that was unlikely because the weather hasn't been that good this year," said Brandon Marshall, a commodity trader with Northstar Commodity in Minneapolis.

The unfavorable growing conditions, combined with strong demand from China, are likely to lead to "pretty tight stocks" for soybeans, Marshall said.

Corn also rose 10.75 cents to $4.64 a bushel. Wheat edged up 1.5 cents to $6.35 a bushel.

December gold rose $22 to $1,334.20 an ounce. It was the fourth straight gain for gold.

Silver for September delivery rose 93.20 cents to $21.339 an ounce, its biggest gain in three weeks.

Other metals edged lower.

Copper for September fell 0.35 cents to $3.303 a pound. Platinum for October fell $1.90 to $1,498.70 an ounce and palladium for September lost $3.40 to $737.60 an ounce.

Crude oil for September delivery gained 14 cents to close at $106.11 a barrel on the New York Mercantile Exchange.

In other energy trading, heating oil rose 3 cents to $3.02 a gallon, wholesale gasoline was flat at $2.90 a gallon and natural gas futures had the biggest one-day gain since mid-July. Natural gas rose 8 cents to $3.31 per 1,000 cubic feet.