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Natural gas was the best-performing commodity in 2013 while US oil also gained, but gold notched up its biggest fall since 1981 as commodities ended the year amid uncertainty about the scope for rising global demand to absorb ample supplies. Corn fell the most in 2013 with losses of nearly 40 percent as record US production boosted global supplies, while major consumer China is cutting back on expected imports.
For 2014, commodities investors are focusing on an improved economic outlook in top consumers the United States and China, although increased supply may spoil the party, particularly for oil and copper.
"This optimism that we are living through will help support commodity markets in the first and second quarters," said Jonathan Barratt, chief executive of commodity research firm Barratt's Bulletin in Sydney.
"It should provide an undercurrent of strength."
Ample supplies of many commodities may outweigh any stronger demand, leading to another lacklustre year for broad commodity indices.
"Commodity prices are probably going to be flattish coming into the new year," said Colin Hamilton, head of commodities research at Macquarie in London.
The Thomson Reuters/Core Commodity CRB index, which tracks 19 commodities, closed the session down 0.85 percent, its worst daily performance in two months.
It fell 4.8 percent in 2013, the third straight year of losses.
NATURAL GAS JUMPS
US natural gas futures climbed steeply amid fresh signs of chilly winter weather and stronger-than-usual seasonal demand. The front-month contract ended the year up 27 percent. If drawdowns for the rest of the heating season match the five-year average, it would result in the lowest end-winter inventory since 2008. That could help prop up prices next year as utilities scramble to rebuild stocks.
US oil prices closed the year 7.2 percent firmer as traders headed into 2014 eyeing improving demand, the end of the Federal Reserve's monetary stimulus and the dramatic overhaul of the world's largest oil market caused by the shale revolution. The market recouped a 7 percent decline in 2012, but could come under pressure as the US shale boom adds to supply in the world's largest oil consumer.
Brent crude ended the year almost flat at $110.80 a barrel, with supply disruptions having offset concerns over weak demand.
"As we move into 2014, markets are once again trying to balance various supply disruptions with some positive news," a JBC Energy report said.
Gold lost 28 percent in 2013