Commodities ranging from copper to corn (maize) are set to feel the effect of a deal struck by the European Union Finance Ministers to help Cyprus overcome its financial problems that have generally dogged the region.

During a weekend meeting, the ministers have decided to bailout the tiny nation, provided it chipped in with its share. In turn, the Cyprus Government has decided to impose a tax on bank account holders that will be 10 per cent of their savings. The move feared to trigger panic among investors and citizens alike could also lead to run-in on banks.

Gold, however, looks the likely commodity to gain, though demand vanished after it topped $1,600 an ounce in early trade in Asia.

The Cyprus Government hopes its law makers will back its $7.5 billion programme, taxing bank account holders.

Cyprus, though, is not a key contributor to the region’s economy as it makes up around 0.2 per cent of the region’s production.

Spot gold rose to $1,608.60 an ounce but pared gains on absence of demand to quote $,1597.20. Gold April contracts also topped the $1,600-an-ounce mark before ruling at $1,596.60.

Soyabean dropped almost one per cent to quote at $14.13 a bushel, adding to the weekend woes it faced on higher Brazilian output. Malaysia crude palm oil futures for delivery in fell to 2,400 ringgit ($765.50 or Rs 41,333) a tonne.

The grains complex also witnessed a plunge with Chicago Board of Trade corn for delivery in May slipping to $7.11 bushel, while wheat for delivery the same month dropped to $7.15 a bushel.

Industrial metals led by copper dropped with May contracts plunging nearly three per cent to $7,545 a tonne, while aluminium and zinc slipped below $2,000 a tonne.

Crude oil also followed suit with Brent May crude decreasing to $108.43 a barrel and NYMEX crude to $92.23.

Natural rubber, too, slumped on TOCOM by over 3 per cent, while cocoa, coffee and cotton all dropped.

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