Oil prices fell this week on easing supply worries with the end of winter approaching in the northern hemisphere, OPEC's move to maintain output, calmer-than-expected Iraqi elections and warmer temperatures in the north-eastern United States. Metals were led lower by gold amid speculation the International Monetary Fund could sell gold reserves under pressure from Group of Seven (G7) nations.
The Commodities Research Bureau's index of 17 commodities fell to 281.35 points on Friday from 284.69 points a week earlier.
GOLD: Gold prices fell to the lowest level in three-and-a-half months on concern that the IMF may be forced to sell some of its gold reserves to help clear Third World debt.
"Fresh calls by UK Chancellor of the Exchequer Gordon Brown to sell IMF gold reserves to fund a Third World debt relief program have spooked the gold and precious metals market after Brown said he expected a decision within the next few weeks," said analyst James Moore.
Gold fell to as low as 415.90 dollars at the late fixing in London on Friday, the lowest level since mid-October. Brown along with fellow finance ministers from the G7 industrialised countries were meeting Friday and Saturday in London.
Brown has pledged to use Britain's presidencies of the G7 and G8, the Group of Seven industrialised countries plus Russia, this year to push for a scheme delivering full debt cancellation, trade benefits and financial assistance for the world's poorest countries, particularly those in Africa.
But the United States is widely reported to be sceptical of the project, the main aim of which seeks to double global aid to the developing world to 100 billion dollars per year.
On the London Bullion Market, gold prices fell to 415.90 dollars per ounce from 426.80 dollars a week earlier.
SILVER: Silver prices traded lower in line with gold, while analysts predicted further gloom for the metal.
"Beyond any near-term recovery, we continue to believe that silver will trade lower this year and have an average price of 5.80 dollars per ounce for 2005," UBS analyst John Reade said.
Silver prices fell to 6.655 dollars per ounce on Friday at the fixing from 6.770 dollars a week earlier.
PLATINUM AND PALLADIUM: Platinum and palladium prices fell in the wake of poor performances from other metals.
"Platinum traded lower in sympathy to weak gold, silver and base metal prices and palladium settled lower too," Reade said.
Platinum, which a week earlier reached 871 dollars per ounce, the highest level since December 6, was pressured also by a weakening of South Africa's rand currency against the dollar, Reade said.
By Friday, platinum prices fell to 864 dollars per ounce on the London Platinum and Palladium Market from 870 dollars a week earlier.
Palladium prices declined to 182 dollars per ounce from 189 dollars the previous week.
BASE METALS: Base metals fell, pressured by a rising dollar and increasing stockpiles of copper.
"Base metals have been weaker this week, led by copper," Societe Generale analyst Stephen Briggs said.
"The dollar strength has had a negative influence across the board, for all (base) metals. We had some increases in London Metal Exchange stocks this week, particularly for copper. It's taken a bit of the shine off base metals even though most of them will remain in deficit this year."
By Friday, three-month copper prices fell to 2,997 dollars per tonne on the London Metal Exchange from 3,081 dollars a week earlier.
Three-month aluminium prices dropped to 1,829 dollars per tonne from 1,840.50 dollars.
Three-month nickel prices climbed to 14,700 dollars per tonne from 14,560 dollars.
Three-month lead prices declined to 925 dollars per tonne from 935 dollars.
Three-month zinc prices traded at 1,296 dollars per tonne from 1,295 dollars.
Three-month tin prices eased to 7,985 dollars per tonne from 8,040 dollars.
OIL: World oil prices dropped as supply fears eroded, leaving traders to bank profits. Crude prices fell strongly as early as Monday after OPEC maintained its current production levels and Iraq was spared any pipeline attacks during landmark elections.
Traders were reassured by a decision Sunday by the Organisation of Petroleum Exporting Countries in Vienna to maintain output levels at 27 million barrels per day.
OPEC's meeting had coincided with Iraq's first free election in half a century. At least 38 civilians as well as members of the US and Iraqi security forces were killed during the vote and in the hours after, but oil facilities were not targeted by insurgents.
Oil futures continued to fall later in the week on forecasts of warmer weather in the United States and a sharp rise in its gasoline inventories ahead of the US holiday driving season.
The US Department of Energy (DoE) on Wednesday reported that gasoline inventories shot up by 1.6 million barrels in the week ending January 28, smashing analysts' expectations for a fall of 400,000 barrels.
"There's a general softness prevailing in the market since we've almost made it through the winter," said Jamal Qureshi, analyst at PFC Energy, who added that supplies of gasoline appeared adequate going into the summer driving season.
"The gasoline situation is looking less and less dire," he said.
By Friday New York's light sweet crude for delivery in March fell to 46.80 dollars per barrel from 48.05 dollars the previous week.
In London, Brent North Sea crude for March delivery stood at 44.34 dollars per barrel compared with 45.03 dollars a week earlier.
RUBBER: The prices of rubber rose this week amid the low harvest season in major producing countries in Asia and the onset of the Chinese New Year.
Rubber prices "have closed pretty good on the week", said one London trader.
"This is mainly due to wintering and the Chinese New Year which starts on Tuesday. Before the Chinese New Year, prices always move higher historically. It may be psychological," he added.
Wintering refers to the low harvest season between February and April and affects major producers Indonesia, Malaysia and Thailand.
In Osaka, the RSS 3 March contract rose to 132.90 US cents on Friday from 132 cents a week earlier.
Singapore's RSS 3 March contract stood at 124.75 US cents on Friday, compared with 122.25 cents last week.
COCOA: Cocoa prices steadied after reaching five-week high points last week, pressured by concerns over the political situation in major producer Ivory Coast.
"The market is supported by fears of a supply shortage and unease at the potentially violent situation in Ivory Coast," Refco analyst Ann Prendergast said.
Cocoa prices had a week earlier shot up to the highest point since mid-December on dry weather and concerns over the west African country.
On Liffe, London's futures exchange, the price of cocoa for March delivery dipped to 856 pounds per tonne on Friday from 859 pounds a week earlier.
On the CSCE, the New York futures market, the March contract stood at 1,569 dollars per tonne on Friday, from 1,570 dollars the previous week.
COFFEE: Coffee futures advanced on an expected lower harvest in major producer Brazil.
There are "expectations of a smaller Brazil crop, which traders say is not likely to be improved by recent rains", Prendergast said.
Coffee futures hit the highest level for four and a half years in New York last December on huge buying by speculative funds, which anticipate a production deficit for the 2005-2006 season.
A production deficit of seven million bags, each weighing 60 kilogrammes, is expected for the 2005-2006 season, according to the International Organisation of Coffee.
On New York's CSCE market, Arabica for March delivery slipped to 104.90 cents per pound on Friday, from 102.30 cents the previous week.
On Liffe, Robusta quality for March delivery gained to 827 dollars per tonne on Friday from 781 dollars a week earlier.
COTTON: Cotton futures fell to the lowest point for more than a month on heavy selling by speculators and forecasts of a huge surplus during the current harvest season.
"Cotton futures finished weaker despite good export sales data" from the American Department of Agriculture (USDA), Prendergast said. The data "buoyed the market briefly" but a failure to capitalise "led speculators to sell", she added.
New York's March contract was 43.00 cents per pound on Friday from 44.10 cents a week earlier.
The Cotton Outlook Index of physical cotton fell to 50.70 cents on Thursday from 52.35 cents the previous week.
GRAINS AND SOYA: Grain prices steadied this week while soya continued to fall due to wetter weather in major producer South America.
Allendale analyst Joe Victor said only drier weather in Argentina, whose harvesting begins next month, would carry soya higher in the short term.
On Liffe, wheat for March delivery was quoted at 66.50 pounds per tonne on Friday from 65.75 pounds the previous week.
In Chicago, the price of wheat for March delivery rose to 290.75 cents per bushel Friday from 290.50 cents a week earlier.
Maize for March delivery dropped to 195 cents per bushel on Friday from 196 cents the previous Friday.
Soyabeans for March delivery fell to 501 cents per bushel on Thursday from 515.50 cents the previous week.
March-dated soyabean meal - used in animal feed - stood at 149.90 dollars per tonne compared with 154.70 dollars.
SUGAR: Sugar futures fell on profit taking amid speculation that demand would not be as strong as expected.
"Sugar futures sagged under pressure," said Prendergast.
The price of white sugar had risen to 268 dollars per tonne in London a week earlier, the highest level since June 2001, on forecasts of heavy Asian demand.
By Friday on Liffe, the price of a tonne of white sugar for May delivery dropped to 266 dollars on Friday from 273.40 dollars a week earlier.
On the CSCE in New York, a pound of unrefined sugar for March delivery declined to 9.07 cents on Friday from 9.14 cents the previous week.
WOOL: Wool prices steadied after the Australian dollar moved little against its US counterpart.
The Australian dollar gained 0.1 percent against the US currency over the week.
The Australian Eastern index stood at 7.41 Australian dollars per kilo on Thursday up from 7.40 dollars a week earlier.
The British Wooltops index dipped to 396 pence from 401 pence the previous week.
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