Will commodities prices rebound?

The performance of commodities will remain varied.

Commodities with industrial uses such as copper, silver and platinum will see rising demand as the cyclical recovery in the global economy continues.

It will be difficult for supply to respond swiftly enough to weaken the prices of these metals.

But there is a risk of political paralysis in the US and Europe spoiling sentiment.

Long-term investors and emerging-market central banks are likely to continue to buy gold as a hedge, providing support to prices.

US natural gas prices are likely to remain weak until the infrastructure to absorb the excess supply is created.

Crude oil prices will continue to be influenced by geopolitical risk, but key exporting countries like Saudi Arabia will use their spare capacity to smooth negative supply shocks and help stabilise Brent.

Improvements in pipeline operations in the US will see the glut of oil at Cushing, Oklahoma, move south to Texas, bringing a better balance to supply and demand in the US.

However, continued growth in shale oil production will temper any WTI oil price gains.

Agricultural prices will be dominated by supply trends with weather, crop disease and farming policies having a greater influence on price than incremental changes in demand.

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