Greek deal nears and brings optimism to commodity markets

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There is increasing hope that today will see Greek politicians accept an austerity package that will lead to the country receiving a €130 billion bailout.

Although this was expected to happen on Monday, markets have been relatively stable seeing the delay more as a sign of progress rather than lack of action.

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Three-month copper on the LME saw a rally this morning as a result. In early trading it rallied up to $8,626 (£5,458) compared to yesterday’s official price of $8,361 (£5,290).

The S&P GSCI index of 24 commodities has also been increasing over the past few days. Yesterday, the index was up to 5082.86 compared to 4,994.31 on 31 January.

Brent crude oil has been rising in price and at 7:21am this morning was priced at $116.35 a barrel.

Cotton has also picked up a little and was at $87.37 per pound yesterday from $83.96 a day earlier.