Oil fell from the highest close in more than a week after Premier Wen Jiabao said China's economic recovery hasn't gained momentum, stoking speculation that demand may ease there.

Futures slid as much as 0.6% in New York, declining for the first time in four days. Oil for August delivery dropped as much as 52 cents to $86.58 a barrel on the New York Mercantile Exchange and was at $86.77 at 2:25 p.m. Singapore time. The contract gained 1.2% to $87.10 on July 13, the highest close since July 5. Prices are 12% lower this year.

Gold traded on Monday changed little as investors stayed on the sidelines ahead of a presentation by the US Federal Reserve chief later in the week that will be scoured for clues on the central bank's attitude to another round of quantitative easing.

London copper slipped on Monday from the previous session's one-week high as surging grains futures drew away some buying power. Three-month copper on the London Metal Exchange inched down 0.3% to $7,680.25 per tonne (1.1023 tonne) by 3.20 a.m. EDT. Prices rose 1.9% and hit a one-week high at $7,730 in the previous session.

Chicago new-crop corn jumped 4% on Monday, while soybeans gained about 2.5% with both markets climbing to contract highs on forecasts of more stressful hot weather.

Malaysian crude palm oil futures edged higher on Monday. By the midday break, benchmark October palm oil futures on the Bursa Malaysia Derivatives Exchange gained 2.3% to 3,140 ringgit ($997) per tonne, after going as high as 3,161 ringgit.

In the Indian markets, sugar futures jumped 2% on Monday to hit a contract high as demand in the spot market improved on lower quota for the September quarter and on concerns over production due to poor rainfall.

The key August contract on India's National Commodity and Derivatives Exchange was up 2% at Rs 3,265/quintal, after hitting a high of Rs 3,269/quintal earlier in the day.

Indian chana futures touched a record high on Monday due to robust demand from the spot market ahead of the festive season amid thin supplies. In the Delhi spot market, chana rose Rs 166/quintal to Rs 4,837/quintal.

In the spices market, jeera and turmeric futures hit new contract high at the NCDEX. Futures rose to a new contract high on Monday. The total area under cultivation in India is likely to fall 30% this season.

Turmeric futures rose to a new contract high on Monday due to the slow progress of the monsoon, which could hit sowing operations and crop output. The contract for July delivery opened at Rs 4932/quintal and rose 2.73% at Rs 4972/quintal after hitting a high of Rs 5000/quintal. At Nizamabad, spot turmeric rose Rs 195/kg to Rs 4,611/kg.

Jeera futures hit a fresh contract high on weather concerns and robust overseas demand amid slack local supplies. At Unjha in Gujarat, jeera rose Rs 58/quintal to Rs 15,508/quintal.