Commodities fell after China, the world’s biggest buyer of energy, industrial metals and soybeans, raised interest rates, crimping raw materials demand for Introducing brokers forex.
The Standard & Poor’s GSCI spot index of 24 raw materials dropped 0.6 percent to 642.22 by 12:02 p.m. in London as crude oil dropped 1.3 percent and wheat declined 0.8 percent. Copper lost 1.2 percent, the biggest decline in two weeks.
China raised interest rates for the third time since mid- October after growth accelerated and inflation stayed above 4 percent for a third month. Wheat has jumped 76 percent in the past month, and global food prices gained to a record last month, according to the United Nations.
Crude oil for March delivery on the New York Mercantile Exchange fell as much as $1.60, or 1.8 percent, to $85.88 a barrel, the lowest price since Jan. 28, and was last at $86.37. Brent crude for March settlement was down $1.10, or 1.1 percent, at $98.15 a barrel on the ICE Futures Europe exchange in London, extending its 2.5 percent drop of the past two days.
Corn fell 0.7 percent to $6.7025 a bushel and soybeans declined 0.3 percent to $14.1975 a bushel.
Precious metals held gains, with gold up 0.2 percent to $1,353.65 an ounce and palladium rising 0.2 percent to $819.50 an ounce.