Commodities market good start

Commodities enjoyed a bright start to 2010 , with oil bouncing above 83 dollars and sugar striking a 29- year high as traders eyed recovery hopes despite poor US jobs data. "We have been highlighting for some time that there is still considerable upside risk to commodity prices in early 2010 ," said Barclays Capital analyst Kevin Norrish in a research note to clients. OIL: Oil begun 2010 with a bang on Monday, soaring by more than two dollars as freezing temperatures spread. Reports that Russia had cut supplies to Belarus also helped push prices higher but officials in Belarus later denied the reports. Oil jumped by around 80 percent in 2009 as traders were heartened by evidence that the battered global economy was on the mend, with the eurozone, Japan and the United States escaping a fierce recession. By late Friday, New York's main futures contract, light sweet crude for delivery in February, rallied to 82.22 dollars a barrel from 79.36 dollars on Thursday of the previous week. PRECIOUS METALS: Platinum and palladium prices soared to equal recent highs after the US launch of exchange traded funds (ETFs) for both metals. Platinum rallied as high as 1 ,578 dollars per ounce, the best level since August 2008 while palladium hit 434.25 dollars an ounce, the best since July that year. By Friday on the London Bullion Market, gold rose to 1 , 126.75 dollars an ounce, from 1 ,104 dollars the previous Thursday before the New Year holiday break. Silver soared to 18.12 dollars an ounce from 16. 99 dollars. SUGAR: Sugar prices scaled 29- year highs, lifted by predictions of lower output in emerging economic giant India. On Thursday, unrefined sugar hit 28.95 US cents a pound, the highest level since January 1981. "Downgrades to forecasts of Indian production after a weak first three months of the 2009-10 season are buoying prices, signalling the need for higher imports," said Barclays Capital analysts. The commodity more than doubled in value last year owing to tight supplies and keen demand. By Friday on the New York Board of Trade ( NYBOT), the price of unrefined sugar for March rose to 28.14 US cents a pound from 27.24 cents on Thursday of the previous week. GRAINS AND SOYA: Grains and soya prices diverged in subdued trade. "The funds have been buying but not as aggressively as expected," noted US Commodities analyst Jason Roose. By Friday on the Chicago Board of Trade, maize for delivery in March firmed to 4.18 dollars a bushel from 4.14 dollars on Thursday of the previous week. March-dated soyabean meal -- used in animal feed -- fell to 10.21 dollars from 10.48 dollars. Wheat for March rose to 5.58 dollars a bushel from 5.41 dollars.