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Grains lead broad recovery in commodities prices

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DENVER — Grains led a broad recovery in commodities prices Tuesday as traders grew more confident about the prospects of a strengthening economy.

Commodities also benefited because the dollar grew weaker against other currencies. A weaker dollar makes commodities, which are priced in dollars, more attractive for overseas buyers.

A series of improved earnings reports gave the stock market a boost and bolstered the confidence of investors who had been concerned about a potential overhaul of financial regulation and civil fraud charges being levied against Goldman Sachs.

The stock market has posted steady gains in the past two months, which potentially could lead to improving demand for commodities.

Wheat, corn and soybean prices recovered much of what was lost Monday when concerned investors sold riskier assets because of worries about Goldman Sachs.

“We got most of that back. It was pretty impressive,” said Telvent DTN analyst John Sanow.

In July contracts, wheat rose 19 cents, or 4 percent, to settle at $4.9850 a bushel; corn added 8 cents to $3.6525 a bushel and soybeans increased 7.75 cents to $9.94 a bushel.

Wheat, in particular, has been helped by expectations of an improving global economy as well as expectations of increased demand for the crop, said Kevin Davitt, a senior market analyst at LaSalle Futures Group.

In addition, some traders were covering previously sold positions, Sanow said.

Metals and energy prices all settled higher, too.

Gold for June delivery rose $3.40 to settle at $1,139.20 an ounce.

Silver for May delivery rose 9 cents to settle at $17.821 an ounce and July copper rose 1.75 cents to $3.5355 a pound.

June palladium rose $17.70 to $551.40 an ounce. and July platinum rose $25.20 to $1,721.80 an ounce.

In trading on the New York Mercantile Exchange, benchmark crude for May delivery rose $2 to settle at $83.45 on the last day of trading for the May contract. Most traders have shifted to the June contract which settled up 72 cents at $83.85.

In May contracts, heating oil rose 2.34 cents to settle at $2.1802 a gallon, gasoline rose 2.65 cents to $2.2809 a gallon and natural gas rose 3.1 cents to $3.975 1,000 cubic feet.