By Stuart Wallace and Chanyaporn Chanjaroen Aug. 13 (Bloomberg) -- Crude oil and copper led gains in commodities as expanding economies in Germany and France, and comments by the Federal Reserve that the U.S. recession is easing buoyed confidence that demand will strengthen. Oil rose for a second day, adding as much as 2.3 percent to $71.77 a barrel in New York. Copper gained as much as 4.1 percent to its highest since October in London, while nickel advanced as much as 8.5 percent to its costliest in almost a year. Corn and other grains jumped, and silver led the advance in precious metals. Germany, the biggest European economy, posted an unexpected 0.3 percent gain in second-quarter gross domestic product, the same expansion as in France. The Fed yesterday said the economy is “leveling out” and pledged to keep interest rates near a record low. Confidence in the world economy surged to a 22-month high in August, a Bloomberg survey of users showed. “Overall the sentiment is positive with the Fed comment,” Christoph Eibl, co-founder of Zug, Switzerland-based Tiberius Asset Management, said today by phone. “People are using every positive argument to get back into the markets. Definitely this is driven by some noise, but I believe things are getting better than many people think.” Crude extended its advance so far in 2009 to 61 percent, buoyed by the International Energy Agency raising its forecasts for oil demand this year and next. The world will need 70,000 barrels of oil more than previously estimated in 2010, the IEA, adviser to 28 nations, said yesterday. Copper Gains Copper rose 3.7 percent to $6,421 a metric ton by 12:21 p.m. on the London Metal Exchange. The metal, used in wires and pipes, has more than doubled this year, rebounding from last year’s 54 percent drop, the biggest in at least two decades. Nickel, used in stainless steel, rose to $21,325 a ton, the highest since Aug. 28. “The Europeans and the Japanese in particular have restarted stainless-steel melting,” BHP Billiton Ltd. Chief Executive Officer Marius Kloppers told reporters yesterday. “There’s been very good buying activity in nickel.” Among other LME-traded metals, aluminum, zinc, lead and tin also advanced. Platinum for immediate delivery rose 2.2 percent to $1,267.80 an ounce in London, taking this year’s gain to 36 percent. The metal, used in jewelry and catalytic converters, has climbed on expectations demand will strengthen as car sales improve. China’s passenger-vehicles sales grew more than 70 percent in July. Silver gained 3.2 percent to $15.01 an ounce. Gold Gains Gold for immediate delivery advanced 1.2 percent to $958.08 an ounce, while palladium gained 2.8 percent. The U.S. Dollar Index, a gauge of the currency’s strength against six counterparts, fell for a third day. Some investors buy gold as a hedge against further weakness in the U.S. currency. “Gold should remain supported by the inflationary impact of the Fed’s rate decision, in addition to the boost to general risk sentiment,” James Moore, an analyst at TheBullionDesk.com in London, wrote in a report. Soybeans rose for a third day in Chicago trading after the U.S. reduced its estimate on global stockpiles. The oilseed for November delivery climbed 2 percent to $10.6525 a bushel. December-delivery corn added 2.1 percent to $3.4325 a bushel, and wheat advanced 0.8 percent to $5.22 a bushel. The U.S. Department of Agriculture yesterday cut its estimate for soybean global ending inventories next year to 50.3 million tons, down 3 percent from the July forecast of 51.8 million tons, and lowered output projections for the U.S., the world’s biggest grower and exporter, and China. The Reuters/Jefferies CRB Index of 19 commodities has gained 15 percent this year, led by copper, gasoline and sugar. To contact the reporters on this story: Stuart Wallace in London at swallace6@bloomberg.net; Chanyaporn Chanjaroen in London at cchanjaroen@bloomberg.net.

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