11.12.2012 - Speculate to accumulate
Should you pin down long-term commodity deals now, hedge or hang on until later? Bad news: buyers believe commodity prices will continue to increase throughout 2013. A recent survey by consultancy AT Kearney reveals the outlook is bleak, while concern over securing natural resources was highlighted as one of the biggest fears facing the global economy in a report by the World Economic Forum. However, analysts are more optimistic. Tom Bundgaard, chief analyst at Kairos Commodities, says: “There is a huge correlation between the Purchasing Managers’ Index (PMI) and commodity prices. At the moment the PMI [globally] is falling – it has been below 50 for a while. As long as the economy contracts, commodity prices will contract.”..............................................Full Article: Source
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