Commodity prices in the thrall of weather and economic sentiment

- "Commodities prices as measured by the CRB indices declined in August following two consecutive months of gains, but price action varied among subgroups and individual commodities. August's two main commodity price drivers were economic sentiment and the weather, which boosted certain commodity prices and suppressed others. Commodities are currently trading skittishly in response to volatile economic sentiment and unpredictable weather."
• "Crude oil prices declined under the weight of deterioration in economic sentiment. (Front-month WTI futures ended August at US$74.70/bbl, down from $78.95 at end-July.)"
• "Gold rose back above $1,200/oz against a backdrop of economic anxiety. (Spot gold ended August at US$1,246/oz, up from $1,169 at end-July.)"
• "Platinum continued to consolidate, edging downward in price. (NYMEX benchmark platinum futures ended August at US$1,523.50/oz, down from $1,576.80 at end-July.)"
• "Copper prices dipped but recovered on expectations of effective monetary easing. (LME copper ended August at US$7,442/t, up from $7,296.25 at end-July.)"
• "Zinc consolidated in a lateral range in sync with swings in economic sentiment. (LME zinc ended August at US$2,061/t, up from $2,022.50 at end-July.)"
• "Aluminum prices fell amid premium negotiations and deterioration in economic sentiment. (LME aluminum ended August at US$2,057/t, down from $2,173.75 at end-July.)"
• "Nickel prices softened as economic sentiment worsened. (LME nickel ended August at US$20,698/t, down from $21,146 at end-July.)"
• "Wheat prices initially rose sharply due to weather factors but retraced much of their gains. (CBOT wheat ended August at US$6.8575/bu, up from $6.615 at end-July.)"
• "Soybeans traded choppily, ending the month nearly unchanged in price. (CBOT soybeans ended August at US$10.10/bu, down from $10.12 at end-July.)"
• "Corn prices rose, lifted by inclement weather and increased demand for US corn. (CBOT corn ended August at US$4.3925/bu, up from $4.0675 at end-July.)"
• "Sugar prices rose again on anomalous weather. (New York sugar ended August at US$0.1932/lb, up from $0.1860 at end-July.)"

Nomura Commodity Market Trends Monthly Sep2010

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