Commodities Daily - 25th Jan 2008

Spotlight: Crude oil rose on the back of economic stimulus =
package with expected rate cut to prevent U.S falling into a recession. =
Commodities gained the most in a month, led by increases in metals, =
grains and energy, on speculation Chinese expansion and lower borrowing =
costs will support global growth and buoy demand for raw materials. Soft =
commodities: cocoa, cotton, coffee and sugar rose due to a global =
rebound in equities has eased selling of commodities by investors.=20

Energy: Crude oil surged after the House lawmakers announced =
agreement on an economic stimulus package to avoid recession in the =
world's biggest energy consuming country. Natural gas rose on =
speculation the U.S. will avoid a recession and fuel demand will =
increase. Besides, heating oil futures rose after a government report =
showed that inventories declined last week.

Agriculture: Corn and soybeans surged as overseas buyers =
increase purchases of U.S. supplies after prices dropped about 9 percent =
from record highs last week. Notably, the world's second-largest =
exporter of the grain, Argentina corn production may fall 4.5 percent on =
the back of unfavourable weather. Wheat rose for the first time this =
week on signs U.S. exports may gain as a falling dollar makes the grain =
cheaper for buyers using other currencies.=20

Cocoa jumped the most in three weeks as the U.K. pound gained against =
the dollar. Besides, cotton and coffee rose as a result of a global =
rebound in equities has eased selling of commodities by investors.=20

Precious Metals: Gold topped $900 an ounce in New York for the =
first time in a week after the dollar dropped against the euro. Silver, =
platinum and palladium rose.

Industrial Metals: Copper gained the most in three weeks after =
a report showed China's economy expanded more than 11 percent for the =
fourth straight quarter, easing concern the global economy may sag.