Daily FNArena News - Commodities

China remains the driver of base metal prices at present and mixed views on the sustainability of its buying means some variation in price forecasts.

Demand divergence in various markets suggests 2010 will be a transition year for the global oil market.

It increasingly looks like US$40.50/lb earlier this month will turn out the price bottom for U3O8 this year.

Call it the “super-cycle”, call it “stronger for longer” or call it neither, but post-GFC analysts are back arguing strong upside for commodity prices from here.

Gold and silver continue displaying bearish signals on price charts.

Brazil’s Vale is reportedly demanding a price rise of 114% and this is likely to provide iron stocks with a boost today.

Barclays Capital attended a stainless steel conference in China and left with the view traders remain optimistic about the outlook for nickel prices.

Sugar prices have fallen heavily over the past few weeks but Commonwealth Bank sees scope for a short-term bounce.

Barclays expects supply side issues will support platinum prices through the rest of 2010.

It is probably a fair assumption that spot U3O8 prices have seen their bottom with this week recording another rise.