Commodity markets ticked down on Friday, pausing for breath after a rally inspired by a trillion-dollar deal by G20 world leaders to halt the worst recession in decades faltered, with attention turning again to economic data.
Oil and LME copper fell more than 1 pecent from the previous day, while gold barely budged.
On Thursday the Reuters-Jefferies CRB commodities index, which tracks 19 futures markets, settled up almost 4 percent on the back of an equities rally inspired by the G20 agreement and new rules concerning valuation of toxic assets at U.S. banks.
World leaders announced a $500 billion injection for the International Monetary Fund, plus $250 billion in IMF Special Drawing Rights and $250 billion to boost trade.
"The overall market outlook is quiet in Asia. I think the market has discounted the news about the announcement of G20," said Louis Lok, a dealer at Bank of China in Hong Kong.
"The next focus is the U.S. announcement of the nonfarm payrolls data," and its impact on metals, stock and currency markets, Lok said.
Investors will be training their eyes on U.S. March unemployment, non-farm and manufacturing payrolls data, due later in the day.
Analysts polled by Reuters forecasting that U.S. nonfarm payrolls shrank by 650,000 in March, nearly matching a fall of 651,000 in February, suggesting the ailing U.S. economy probably continued to bleed jobs at a rapid rate.
Oil slid to just over $52 a barrel, retreating from the previous session's near 9 percent surge — its largest one-day percentage gain in three weeks — as expectations of a continued weakness in near-term energy demand prompted investors to take profit.
By 0458 GMT, U.S. light crude for May delivery had fallen 59 cents to $52.05 a barrel, while London Brent crude was down 54 cents at $52.21.
"For oil markets a look at the inventory numbers will immediately raise doubts on whether a sustained rally is warranted," said Toby Hassall, head of research at Commodities Warrants Australia.
Data on Thursday showed U.S. crude stocks rising again to a fresh 16-year high due to higher imports, while products inventories also surprisingly increased amid lower demand.
Three-month copper on the London Metal Exchange, dipped $55 to $4,115, having touched a five-month peak at $4,187.50 on Thursday. Shanghai copper for June delivery fell 0.4 percent to 34,210 yuan a tonne at midday, after earlier touched 34,680 yuan, its highest since October.
"Copper is down a little today, but remember prices have risen nearly 50 percent from the lows. After that kind of rally we should expect a pause as people weigh whether the economic outlook supports the rise in prices," said Jonathan Barratt, managing director of Commodity Broking Services.
Prices are still up around 2 percent this week in London and 3 percent in Shanghai.
Metals took heart from China, where the official purchasing managers' index for March rose to 52.4 from 49.0 in February, crossing back into expansionary territory in March for the first time since last September.
Some analysts were unfazed by the day's correction, arguing that commodity prices may recover further in coming months as global stimulus measures boost demand for raw materials.
"The G20's coordinated pledge to spend more for economic stimulus and the U.S. changing accounting rules gives an additional momentum for market players to buy back assets which they believe have been oversold to values well below an equilibrium," said Akio Shibata, director at Marubeni Research Institute.
He added: "Whether this buying momentum is sustainable is questionable. The rally is likely be confined to buying back to levels where many players would feel comfortable for the current situation, where there is still no sign of recovery in the global economy."
Gold held steady above $900 following a slump the previous day when its safe-haven status was hit by a stock rally.
Spot gold stood at $903.20 an ounce, barely budging from New York's notional close of $903.15.
CBOT May wheat fell 0.2 percent to $5.49-1/2, May corn rose 0.5 percent to $4.00-½ per bushel, while May soybeans were flat after after hitting a two-month high on Thursday.
