Daily FNArena News - Commodities

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.

Base metal prices have started the new year strongly but with continued concerns over global economic growth Barclays Capital doesn’t expect the trend to continue shorter-term.

Steel industry consultant MEPS anticipates continued strong global demand growth for steel in coming years, driven by Asia and emerging regions such as South America and the former USSR.

Canada’s BMO believes once the problem with debt and credit markets are left behind, resources will once again take off next year.

UxC has followed TradeTech and lowered its weekly price indicator for U3O8 to US$90 per pound.

Steel industry consultant MEPS has reviewed the outlook for steel production in coming years and sees China and the former USSR leading the way in lifting global output.

The latest forecast from ABARE suggests commodity earnings will grow by only 1% in FY08.