Commodities rose & capping the biggest weekly gain since October 2009

Commodities rose, capping the biggest weekly gain since October 2009 as a worldwide shortage of cotton and wheat drove prices higher farm.

The Thomson Reuters / Jefferies CRB Index of 19 commodities rose 4.06, or 1.3 percent, to close at 316.16, rising rally a week at 5 percent.

Cotton was the biggest weekly rise in 39 years after India put limits on exports. Heavy rain is eroding the quality of wheat from Australia after a drought cut cereal production in Russia. The dollar fell against major currencies, increasing the attractiveness of investment in energy, metals and crops. Crude oil rose to a maximum of 25 months, and gold topped $ 1,400 an ounce.

"The perfect storm of commodities continues another week," said Fain Shaffer, president of Infinity Trading Corp., a brokerage firm commodity in Medford, Oregon. "The weather problems, financial problems and China saying it wants to buy gold, all of these markets are fairly well so far."

The UBS Constant Maturity Commodity Index of 26 prices advanced 1 percent, at 1,561.89. This week, the index rose 4.9 percent, the highest since July 2009.

The dollar fell more than six weeks against a basket of six major currencies after a U.S. government report showed that employers added fewer than a third of many jobs last month as economists' forecast and the unemployment rate rose to 9.8 percent, increasing speculation that the recovery is faltering.

Changes of funds in commodity markets also boosted the rally, said Bill O'Neill, partner at LOGIC Advisors in Upper Saddle River, New Jersey.

Commodities in 'art'

"There are a lot of money out there that need to be reversed as we move toward year-end," said O'Neill. "Commodities and gold, in particular, are at the forefront of that as an asset class."

assets under management in commodities rose by $ 19 billion to a record $ 340 billion in October, Barclays Capital, said last week.

The CRB index has risen 20 percent since Aug. 31. During this period, cotton and gold rose to records, silver rose to a 30 - year high and copper rose to more than 30 months.

For the third consecutive day, the price of cotton in the U.S. ICE most animals raised. The contract for March delivery, the most active, jumped within six cents, or 4.7 percent, to settle at 1.3234 dollars per pound in New York, the biggest gain since July 2009.

Wheat futures for March delivery rose 30.5 cents, or 4.1 percent, to $ 7.79 a bushel on the Chicago Board of Trade. This week, the price gained 13 percent, the highest since August.

"Unemployment, stagnation '

Gold futures for February delivery rose $ 16.90, or 1.2 percent, to close at $ 1,406.20 in the Comex in New York. This week, the metal rose 3.1 percent, the most since late May. The metal reached a record $ 1424.30 on 9 November.

"Ongoing economic uncertainty and the possibility of more quantitative easing necessary to counter the high unemployment and stagnant economic recovery is a solid basis for investing in gold," said Bayram Dincer, an analyst at LGT Capital Management in Pfaeffikon, Switzerland .

China should consider the addition of gold reserves to pave the way for the internationalization of the yuan, Xia Bin, a central bank adviser, said in remarks at the China Business News.

Silver futures for March delivery rose 69.9 cents, or 2.4 percent, to $ 29,271 an ounce on the Comex. Earlier the metal hit $ 29.37, the highest since March 1980. This week the price rose 9.3 percent, the highest since January.

Crude oil futures for January delivery rose $ 1.19 to $ 89.19 a barrel on the New York Mercantile Exchange, the highest closing price since Oct. 7, 2008.

"The increase is due to a dollar much lower," said Hamza Khan, an analyst of Schork Group Inc., a consulting firm in Villanova, Pennsylvania. "This is not based on fundamentals."

Commodities are established as follows:

Precious metals: gold February to $ 16.90 to $ 1,406.20 an ounce March silver up 69.9 cents, to $ 29,271 a platinum oz January to $ 15.40 to $ 1728.50 an ounce of palladium in March to $ 6.40 to $ 770.10 Oz

Livestock: February live cattle by 0.1 percent to $ 1.06375 a pound of food donated January unchanged at $ 1.18675 per pound in February lean hogs up 0.575 cent at 76.575 cents per pound of pork February bellies unchanged at $ 1.045 a pound

Grains: Soy January to 20.5 cents at $ 13.0025 a bushel of corn in March to 18 cents to $ 5.735 a bushel of wheat March up 30.5 cents to $ 7.79 a bushel March Oats up 6 cents to $ 3.67 a bushel

Food and fiber: March coffee by 1.1 cents to $ 2.048 a pound cocoa March to $ 67 to 2.935 dollars per ton of cotton in March to 6 cents to $ 1.3234 a pound of sugar to 1 March , 05 cents to 29.5 cents per pound of orange juice in January to 1.35 cents to $ 1.568 one pound

Energy: Crude Oil in January to $ 1.19 to $ 89.19 a barrel in January of natural gas by 0.6 percent to $ 4,349 per million British thermal units in January heating oil up 3.28 cents to $ 2.4874 a gallon Gasoline 0.32 percent in January to $ 2.3521 a gallon