Daily FNArena News - Commodities

While drilling activity is decling sharply, weaker economic data suggest lower demand for natural gas in the coming year.

Spot uranium fell in price during the week past as sellers felt they needed to offer some discount.

Fears that a fading Chinese economy would cause further harm to an already suffering base metals market are now panning out.

The latest update on global steel markets by industry researcher MEPS reads like a horror novel.

With no transactions recorded, the uranium spot price is unchanged from US$54/lb leading into Christmas.

Poor prices and tough credit conditions are causing mining companies to cutback spending and Barclays Capital notes this will create serious supply side issues once demand returns.

A survey by Barclays Capital at its Commodities Conference in the US shows professional investors remain committed to the sector.

Economists at the World Bank are dominating global headlines today. No surprise since they called the immediate end of the Commodities Super-cycle.

ANZ Bank expects coal prices to continue to weaken as oil prices move lower and demand stays weak.

Barclays Capital has been bullish on metals prices, but now it expect prices to weaken further into the early part of 2009.