CHICAGO, July 29, 2008 (PRIME NEWSWIRE) — The Dow Jones-AIG Commodity Total Return Index is up 12.01% so far this year. Leading commodity analysts provided their market outlook for the rest of 2008 this morning at the seventh annual Dow Jones Indexes Commodity Outlook, hosted by CME Group.

Oil prices may have reached their peak for now

“Declining oil prices in recent weeks due in part to weakened U.S. demand and increased global output have provided relief to consumers after the string of record highs we’ve experienced in the first half of 2008. The questions on people’s minds are ‘has the oil bubble finally burst’ and ‘if so, when will we see a return to double-digit prices?’ We should see oil prices reach $99, heating oil at $250 and RBOB close at $220 before the end of the year,” said Phil Flynn, vice president and senior market analyst, Alaron Trading Corporation, Chicago.

Global grains supply expected to rise in second half of 2008

“Soaring energy and food prices are a foregone conclusion that realistically can’t be reversed without a global recession. However, contrary to popular belief, historically high grain prices will bring on more supply than was expected in early 2008, especially as profitability stimulates productive efforts worldwide,” said David C. Hightower, president and founder, The Hightower Report, Chicago.

Gold prices will continue to soar into 2009

“Gold continues to be used as a vehicle to hedge inflation and a store of value in uncertain times. In an environment with high crude oil prices, a historically weak dollar and fragile world economies, gold should trade at the high end of its recent range and make new highs into 2009,” said Charles Nedoss, senior account manager, Peak Trading, Rosenthal Collins, Chicago.

The Dow Jones-AIG Commodity Index, a diversified and highly liquid benchmark for the commodities markets, is composed of futures contracts on physical commodities and was introduced in 1998. The 19 commodities currently in the Dow Jones – AIG Commodity Index(sm) are: aluminum, cattle, coffee, copper, corn, cotton, crude oil, gold, heating oil, hogs, natural gas, nickel, silver, soybeans, soybean oil, sugar, unleaded gas, wheat and zinc. The Dow Jones – AIG Single Commodity Indexes include subindexes for the 19 commodities in the composite index, plus cocoa, platinum, lead and tin.

For more information on the Dow Jones – AIG Commodity Indexes, please visit www.djindexes.com.