Commodities post first annual decline since 2008

The Standard & Poor's GSCI Total Return Index of commodities fell 0.1 percent to 4,885.3 in New York, down 1.2 percent for 2011. Cocoa plunged 31 percent in 2011 on signs of expanding supplies from Ivory Coast, the world's biggest grower. Cotton fell 37 percent this year amid rising output and dwindling demand. Copper, often seen as an indicator of economic activity because it is used in construction and automobiles, posted its first loss since 2008.

Economic growth in China, the world's biggest copper user, will slow to 8.5 percent next year, after growing 10.4 percent in 2010, the Organization for Economic Cooperation and Development projected Nov. 28. Manufacturing in December contracted for a second month as global growth faltered and Premier Wen Jiabao prolonged a crackdown on speculation in the housing market.

Advances in gold, oil and cattle helped limit commodity losses.

Gold, 10 percent higher in 2011, capped an 11th straight year of gains as investors seek protection against financial markets turmoil.

Oil climbed 8.2 percent this year, the third annual gain, on speculation that escalating tension in the Middle East will disrupt supplies as a recovery in the U.S. economy bolsters demand.

Cattle futures in Chicago rallied 12 percent as the U.S. herd shrank.

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