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LONDON, December 22 (AFP): Strong global economic growth, especially by the United States and China, led to higher demand and rising prices for most industrial and agricultural commodities this year.
Metals shone-with gold and platinum hitting multi-year peaks.
The Commodities Research Bureau's index of 17 commodities rose to 328.60 points, up from 284.50 points in late 2004.
Crude prices were catapulted to record heights this year by hurricane weather that ravaged Gulf Coast energy installations in the United States, while copper prices also notched up historic highs.
"Crude oil has been the story of 2005, and will still be a key theme for 2006," noted Standard Chartered analyst Helen Henton.
The price of gold struck a 25-year high point, despite a strong US dollar, and analysts see no reason why it will not reach higher in 2006.
Gold prices hit 541 dollars in December-the highest level since January 1981.
Sharply increased demand from investment funds pushed gold higher amid creeping inflation in the United States. Gold is seen as a safe haven in times of high inflation.
Other factors included strong jewellery demand, especially from India and China, and record oil prices.
Historically, a stronger dollar makes commodities which are priced in the US currency on world markets less attractive to buyers using other currencies.
On the London Bullion Market, the price of an ounce of gold stood at 504.70 dollars, up from about 437.10 dollars in late 2004.
SILVER: Silver reached an 18-year high in the wake of sister metal gold. An ounce of silver hit 9.27 dollars per ounce in December-the best level since May 1987 -- benefiting from its multiple uses.
Silver demand for jewellery, particularly from India, increased by 14 per cent in 2005 according to London-based metals consultancy GFMS. Industrial demand rose by six percent this year.
However, demand for photography-which accounts for some 18 per cent of the market-sank by 12 per cent as the boom in digital photography slashed demand for developing camera films.
Growth in demand was expected to moderate in 2006, GFMS said.
Silver prices stood at 8.55 dollars per ounce at the fixing against about 6.77 in late 2004.
BASE METALS: Copper was the star performer-with its price continually breaking historic records amid low stockpiles of the metal. Most other base metals reached multi-year highs, though nickel fared poorly.
Copper struck an all-time high of 4,475.00 dollars per tonne in December and has risen by 40 per cent since January.
Aluminium, meanwhile, hit 2,289 dollars per tonne, a 16-year high, while lead struck a 15-year peak.
Average global demand growth would be little above 2.0 per cent this year, against 7.0 percent last year, Briggs added.
Analysts, by contrast, estimate that the current boom in base metals prices could last for some 20 years.
Three-month copper prices on the London Metal Exchange jumped to 4,425 dollars per tonne from 2,968 dollars a year earlier.
Three-month aluminium prices rose to 2,230 dollars per tonne from 1,795 dollars.
Three-month nickel prices rose to 13,587.50 dollars per tonne from 12,900 dollars.
Three-month lead prices gained to 1,090 dollars per tonne from 930 dollars.
Three-month zinc prices climbed to 1,821 dollars per tonne from 1,154 dollars.
Three-month tin prices decreased to 6,755 dollars per tonne from 8,780 dollars.
OIL: World oil prices surged to historic heights in 2005 on the back of heightened supply concerns during the most intensive Atlantic hurricane season on record.
Crude futures had hit historic high prices in nominal terms in late August following the devastation wrought by Hurricane Katrina, striking 70.85 dollars per barrel in New York and 68.89 dollars in London.
RUBBER: Rubber prices rebounded in 2005 after US hurricane weather cut supplies, while demand surged, particularly from China and India.
Katrina's destructive path through New Orleans resulted in the loss of vital rubber supplies which were stored in warehouses in Louisiana.
SUGAR: Sugar futures reached their best level for around 10 years on soaring demand for Brazilian ethanol.
In New York, prices more than doubled to hit 14 cents per pound in December, a level last seen in April 1995. In London, prices increased by 25 per cent to reach an eight-year high above 330 dollars per tonne.
The jump was mainly owing to forecasts of demand outstripping supply as more and more sugar cane was used to produce ethanol, a cheaper alternative to gasoline (petrol).
Brazil, the world's biggest sugar producer, is using 50 per cent of its harvest to produce ethanol in the face of rocketing oil prices.
Sugar prices have won support this year also from strong demand by India and damage to crops caused by US hurricanes.
On LIFFE, London's futures exchange, the price of a tonne of white sugar for March delivery ended at 336.80 dollars against 258.10 dollars a year earlier.
GRAINS AND SOYA: Grains and soya prices suffered from plentiful harvests.
At the start of the year, the market was supported by speculative buying, but high production levels eroded prices. Maize was worst affected, dropping to 1.858 dollars per bushel in November, its lowest level since June 2001.
Concerns over the avian flu virus also weakened demand for grains and soya, owing to the culling of poultry.
On LIFFE, wheat for March delivery stood at 69.25 pounds per tonne on Friday, against 63.75 pounds a year earlier.
In Chicago, the price of wheat for March delivery gained to 318.70 cents per bushel from 285 cents.
Soyabeans for January delivery rose to 587.20 cents per bushel from 550.2 cents a year earlier.
COTTON: Cotton prices rose this year. The healthy market was best explained by the tightening of global cotton supply, favourable weather conditions and a 20 per cent jump in Chinese consumption, analysts said.
China accounts for some 40 per cent of total global demand.
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