Daily FNArena News - Commodities

Sick of scrambling to secure raw materials from tight supplies, South Korea announced it would triple stockpiles.

Danske Bank remains bullish on aluminium given the expectation China will soon switch to being a net importer of the metal and prices are currently close to the cost of production.

TradeTech has raised its weekly spot price indicator for uranium to US$60/lb, but above all investors are back, the consultant reports.

A poll by TV station Sky Business among experts in Australia has generated a range for oil price forecast by year end between US$100 and US$175 per barrel.

While some investors may be getting nervous about the outlook for commodity prices Barclays Capital notes structured products and those targeting new markets in the sector are growing in popularity.

Chartists at Barclays Capital expect gold to break through resistance at around US$950 per ounce in coming weeks but National Bank suggests this rally may be the peak for the metal.

Mine workers in Peru – the world’s largest silver producer and second largest copper and zinc producer – were set to strike at midnight Sunday.

With the chance the US dollar will weaken further after the Fed left rates on hold ANZ sees scope for some profit taking among commodities this week, though any downside is expected to be limited.

GSJB Were and Rio Tinto see uranium prices heading higher next year but JP Morgan sees few catalysts to drive spot prices over the next 12 months or so.

De-stocking has meant weak Chinese demand for copper but Barclays Capital expects this will soon end and the increased demand will push up the price of the metal.