As noted by Barclays Capital, the phase of upward commodity price movement seen from January to early April is now breaking down. This is due primarily to a less supportive macro environment thanks to ongoing concerns over the European debt crisis and contagion effects.
As Barclays points out, markets are clearly positioning for a further deterioration in the economic outlook, this despite what has in general been mildly encouraging data of late. Buying June quarter lows in commodity markets has been a good strategy in each of the past two years and Barclays sees scope for the pattern to play out again this year……………………………………….Full Article: Source