Analysts cautioned, though, that any lasting lift to commodity prices would only follow a drawdown in unused inventories, which have ballooned in the agricultural and industrial sectors.

"We don't think the gains in commodities will be sustained," Stephen Hamblyn, an analyst for JB Were & Son said.

"For at least the next three or four months, there's still's a lot of pain left in commodity prices," he added.

Moreover, any euphoria brought on by price gains in Australian staples such as wheat, cattle, gold and silver overseas has been tempered by strengthening of the Australian dollar, which dilutes export earnings, the analysts said

The Australian dollar gained nearly a cent on the US dollar on Thursday as investors took the view that a rise in the Commodity Research Bureau index and major stock markets suggested theoutlook for world growth was a little less gloomy.

Also, the rally that swept a range of commodity prices higher largely excluded industrial base metals, a trend that analysts maintain continues to suffer under the weight of oversupply and weak demand.

Nickel and copper prices barely budged as the Dow soared 233.78 points higher to 9544.97 on Wednesday and continued to wallow at their lowest levels in years on Thursday.

Nickel prices are 35 per cent lower than they were a year ago and unlikely to improve until the main user group, stainless steel makers, turn up production

"We've seen these false dawns before," said Commonwealth Bank of Australia commodity analyst Michael Blythe.

Meanwhile, copper prices remain lower than at any time since mid-1987 and stockpiles continue to swell, reaching nearly 600,000 tonnes at London Metal Exchange warehouses alone.

Commodity sensitive resource stocks in Australia rose only about one per cent on average despite the US-led rally, lagging gains in the broaderindustrial sector.

Local wheat futures traded lightly on Thursday despite big gains posted in the US midwestern markets as futures investment funds latched on to the bullish sentiment.

Blythe said while world wheat production is expected to be lower this year, large carryover stocks from the previous year's record crop mean that supply pressures will be stronger this year.

Frigid weather in the US can do little to boost Australian coal prices. Prices have already been set for long-term sales at at an 18 per cent discount to last year, reflecting weaker demand for steel.

The outlook for iron ore is less dim, with analysts predicting only about a four per cent decline in Australian fine and lump ore prices this year.

Export demand for Australian beef also has waned as the buying power in key Asian destinations faltered because of the region's financial crisis.

Meanwhile, a government freeze on the Australian Wool International stockpile until July 1999 and forecasts of the lowest domestic wool clipin 20 years this year have only marginally offset the effects of high inventories held on the farm, wool traders said.

Overall, commodity prices should fall an average five per cent this year, which would leave Commonwealth Bank's Australia-weighted commodity price index at an historical low, Blythe said.