03.07.2015 - Commodity markets diverge as supply and demand come to the fore
Divergence was the name of the game for commodities markets in the second quarter as gasoline and iron ore jumped but coffee and nickel plunged and money flowed into index investments and out of exchange traded funds. Led by crude, commodities enjoyed a strong start to the quarter but the rally fizzled out as oil prices moved sideways and the US dollar stabilised, bringing fundamentals such as supply and demand to the fore. The S&P GSCI total returns index — which includes the gains or losses on rolling over positions and interest on collateral is up 9 per cent on the quarter with gasoline up 20 per cent and coffee down 25 per cent. “It has been a mixed bag for the asset class as a whole,” said Aakash Doshi, analyst at Citigroup in New York...............................................Full Article: Source
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