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By Bloomberg

Lead fell to a 17-month low in London as the dollar strengthened, sparking declines by commodities from corn to palladium.

The Bloomberg Commodity Index of 22 raw materials dropped to the lowest level since July 2009 and the dollar headed for its highest close in five years against a 10-currency basket. Metals also slumped after a private gauge of economic activity in China, the world's biggest consumer, indicated growth slowed last month.

"Even for those base metals with more solid fundamentals, it may be hard to withstand the downdraft from elsewhere in the commodities universe," Nic Brown, head of commodities research at Natixis SA in London, said by e-mail.

Lead for delivery in three months lost 1.3 percent to $1,979 a metric ton by 1:01 p.m. on the London Metal Exchange after touching $1,955.50, the lowest since May 16, 2013. Copper fell 0.7 percent to $6,600 a ton and futures for delivery in December traded on the Comex in New York declined 0.9 percent to $2.992 a pound.

A composite purchasing managers' index for China released by Markit Economics fell to 51.7 from 52.3 in September. Readings above 50 indicate expansion. An index of the six main metals traded on the LME dropped the most in almost three weeks yesterday as the European Union cut growth forecasts for the euro area, damping the outlook for metals demand.

The dollar is rallying amid a recovery in the U.S. economy, the world's largest. A stronger greenback makes dollar-priced commodities more expensive in terms of other currencies and less attractive as an alternative investment. Private data today may show U.S. job growth last month was the strongest since June, according to economists surveyed by Bloomberg.

"Strong data will likely provide further support for the dollar and keep metals under pressure," Dee Perera, an analyst at Marex Spectron Group in London, said in a note.

Aluminum slid the most in seven weeks in London. Nickel, tin and zinc declined.