Daily FNArena News - Commodities

This week’s spot price indicators for U3O8 have been set at US$95 and US$90/lb respectively.

Industry consultant TradeTech has kept its weekly spot price indicator US$5 above last week’s shock release by peer Ux Consulting.

Commodity & Energy strategists at BCA research are of the view that sheer euphoria has been replaced with overdone pessimism in the uranium sector. A recovery is on the cards, they believe.

Despite the credit crunch, commodity investment instruments are holding their own.

GFMS has released its second quarter report into gold market dehedging.

While industry consultant TradeTech kept its weekly uranium spot price indicator unchanged at US$125/lb, UxC dropped its own indicator to US$90/lb.

According to Scotia Capital it is again time to be bullish on commodities, with preferred exposures being iron ore, coking coal, zinc, copper and aluminium.

Commodity prices have not been immune from the current financial markets turmoil but Barclays Capital expects fundamentals will provide support once markets settle.

Following a weaker than expected July month industry consultant MEPS expects steel prices will stabilise over the rest of the year, with scope for small increases early in 2008.

Ux Consulting has followed TradeTech with its latest update of the weekly spot uranium price indicator. US$105/lb is the latest.