Daily FNArena News - Commodities

According to Barclays Capital sentiment in the natural gas market remains poor as the economic outlook continues to deteriorate but as this improves so should the gas market.

Spot uranium has tumbled below US$50/lb again.

The uranium market featured little activity for the third week in a row.

Uranium prices eased this week, but developments in India paint a brighter picture for emerging demand.

According to Barclays Capital, worsening economic fundamentals and increasing supply suggest little scope for shorter-term gains in commodity prices.

Index rebalancing has temporarily distorted the picture, but copper prices should have no other way to go but down.

Analysts at Deutsche Bank expect the uranium spot price to strengthen during this quarter, which bodes well for both Paladin and ERA.

The price of uranium plumbed highs and lows in 2008 and while the outlook for 2009 is for stable prices, there are no safe bets in this market.

Recent US dollar strength is expected to fade and with scope for inflationary pressures to emerge later this year analysts see gold as a relatively good performer among commodities.

Steel prices collapsed in the last few months of 2008, but Westpac sees some positives for iron ore that could limit price falls to 30% or less this year.