Over the past few weeks, cyclical commodities posted significant losses amidst a new wave of pessimism stemming from the situation in the euro zone periphery and generally weaker Chinese figures. Meanwhile, the market sentiment changed as well. Speculators' bets on rise in oil prices (WTI) fell significantly. Today, Brent extends previous losses and the front-month contract is currently seen below 106 USD per barrel (USD/bbl) level. Base Metals Despite the fact that copper stocks at LME are seen at the lowest level since early November 2008, the price of the metal remains under pressure – the three month contract dipped below 7600 USD per ton level as another indicators suggest that relatively tight market conditions somehow eased. The spread between spot and 3M contract fell to 10 USD per ton (USD/t) and cancelled warrants ratio (cancelled warrants / total stocks) fell to about 10 percent which is nearly five months low. In the meantime, the front-end of the forward curve at Shanghai Futures exchange turned into slight backwardation as a part of the stocks of the metal have been drawn. Precious Metals Increased risk aversion and no explicit signs of further monetary easing in major countries (above all, the US) have sent prices of precious metals lower. In last 20 days, gold has been trading below 1600 USD per troy ounce (USD/toz). According to Reuters, Asia’s demand for the yellow metal remains rather muted with no clear signs of further direction for the price.