Daily FNArena News - Commodities

Sugar prices have rallied since the September quarter but analysts continue to have diverse views on the price outlook.

The oil market looks tight at present but as CBA notes this may reflect stronger seasonal demand that traditionally eases as the northern hemisphere moves from winter to spring.

Steel industry consultant MEPS notes more producers are considering introducing alloy surcharges and in its view this bodes well for stainless steel prices.

GFMS suggests central bank gold selling in 2008 will not test the levels seen in 2007.

Gold market activist group GATA is about to challenge the US Treasury in a move that observers suggest could spark a big rally in gold, even from here.

Barclays Capital suggests rather than reducing exposure to commodities when volatility increases it should be retained as there is little link between equity market and commodity price returns.

The story of uranium this week is about one forced seller and a tumbling spot price.

According to Barclays Capital global grain markets have undergone a structural change in recent years thanks to growth in biofuels and increased demand from China and this should support further gains.

Market analysts remain divided on the outlook for copper prices, as bullish factors such as potential supply side issues are countered by the impact of any slowdown in the global economy.

According to BMO’s Donald Coxe gold has rallied as it is an asset that cannot be written down, so the group continues to like the yellow metal.