Markets conditions have forced Goldman Sachs Group’s commodities business to cut down risks, Reuters reports. This has led to overall losses at the bank. Goldman Sachs’ value at risk (VaR) for commodities averaged $25 million per day in the third quarter of 2011 in comparison to $39 million in the second quarter and $29 million in the third quarter of 2010.

During the third quarter, the commodities risk tumbled even as the bank earned higher revenue on commodities compared to other asset classes, apart from interest rates. The bank posted a loss of $428 million during the quarter. Commodities experienced losses in the third quarter as tensions about the European debt crisis rose. The Reuters-Jefferies CRB index ended the quarter down 12 percent.

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