UPDATE 1-COMMODITIES-Weak dollar lifts gold, copper; oil slips

* Gold, copper prices rebound from one-month lows
* Cocoa, soybeans firm as demand concerns ease
* Brent oil slips as Saudi output, US stockpiles rise

By Barani Krishnan
NEW YORK, Oct 16 (Reuters) - Gold and copper prices
rebounded from one-month lows on Tuesday as the dollar fell,
providing investors using other currencies more opportunity to
buy raw materials.
Cocoa and soybeans prices firmed too as concerns over demand
for the two food-based commodities eased. Bargain-hunting also
emerged in those markets, with buyers attracted to cocoa's
two-month lows from last week and Monday's 3-1/2-month bottom in
soybeans.
In oil, benchmark Brent crude fell after higher
output of oil by top producer Saudi Arabia and a hefty buildup
in crude stockpiles in the No. 1 energy consuming nation, the
United States.
The Thomson Reuters-Jefferies CRB index, a
globally watched indicator for commodities, settled up half a
percent after gains in 13 of the 19 markets it tracks. Cotton
was the best performer, rising nearly 4 percent, while cocoa
rose more than 2 percent.

GOLD SNAPS 2-DAY LOSS
Gold prices snapped two days of losses, helped by the
dollar's drop against the euro and after data suggesting U.S.
consumer prices had not risen enough to derail the Federal
Reserve's ultra-easy monetary policy.
The U.S. Labor Department said the Consumer Price Index
climbed 0.6 percent in September, matching analysts'
expectations and August's reading.

Gold has rallied $200 an ounce in the last two months due to
hopes that the Fed's monetary stimulus might trigger inflation.
"From an inflation standpoint, the fact that the CPI is in
line gives the Fed more room to continue easing," said Adam
Sarhan, chief executive at Sarhan Capital.
The Fed pledged last month it would buy at least $40 billion
of mortgage-backed securities a month until the domestic job
market improves dramatically.
The euro rose to a one-week high against the dollar
after a media report indicated Germany was open to a
precautionary line of credit for debt-burdened Spain.
The spot price of gold hovered around $1,749 an
ounce, up 0.7 percent on the day and well above Monday's
one-month low at $1,728.75. U.S. gold futures' most active
contract, December, settled up half a percent at
$1,746.30.
Copper was aided by expectations that a meeting of European
leaders later in the week might advance plans to tackle Spain's
and Greece's debts.
Three-month copper on the London Metal Exchange
ended at $8,125 a tonne, up 0.4 percent on the day and sharply
above Monday's one-month low of $8,050.

COCOA UP AS EUROPE GRINDS LESS
Cocoa rebounded, with investors relieved to see European
grind data falling in line with market expectations. An
indicator of demand for chocolate's key ingredient, Europe's
third-quarter cocoa grind shrank by more than 16 percent from
the same period last year to 316,676 tonnes.
U.S. cocoa's front-month futures closed at $2,418 a
tonne in New York, up nearly 3 percent, after dipping to $2,338
on Friday, its lowest level since July 31.
Soybeans pared gains by the close after rallying earlier on
news that the U.S. Department of Agriculture had reported a sale
of 110,150 tonnes of U.S. soybeans to an unknown destination,
which traders said could be China.
Soy's front-month contract on the Chicago Board of Trade
settled at $14.93-3/4 a bushel, up 0.1 percent on the day
and above the early July bottom of below $14.85 set on
Monday.

Prices at 4:06 p.m. EDT (2006 GMT)
LAST/ NET PCT YTD
CLOSE CHG CHG CHG
US crude 92.12 0.27 0.3% -6.8%
Brent crude 115.04 -0.76 -0.7% 7.1%
Natural gas 3.437 -0.049 -1.4% 15.0%

US gold 1746.30 8.70 0.5% 11.5%
Gold 1747.30 11.81 0.7% 11.7%
US Copper 370.00 -0.15 0.0% 7.7%
LME Copper 8125.00 30.50 0.4% 6.9%
Dollar 79.376 -0.366 -0.5% -1.0%

US corn 738.25 1.00 0.1% 14.2%
US soybeans 1492.75 1.00 0.1% 24.6%
US wheat 860.25 -0.25 0.0% 31.8%

US Coffee 162.80 1.95 1.2% -28.7%
US Cocoa 2418.00 64.00 2.7% 14.7%
US Sugar 20.17 0.32 1.6% -13.2%

US silver 32.959 0.216 0.7% 18.1%
US platinum 1645.20 9.90 0.6% 17.1%
US palladium 638.95 6.35 1.0% -2.6%