Commodity prices up for December, modest rise for 2013

HONG KONG - Global commodity prices increased in December, with the HSBC proxy for the IMF primary commodity price index 3.5% higher in USD terms for the month. Global commodity prices finished 2013 up by a modest 2.4% y-o-y in USD terms. HSBC says higher energy prices provided a boost, with both oil and natural gas prices rising in 2013.

Cereals were a key area of weakness, with prices falling significantly following a strong recovery in global production. Australia's commodity price basket fell 4.1% in 2013 in USD terms, although a lower currency helped the index rise 11.7% y-o-y in AUD terms. www.hsbc.com (ATI).