| The recent commodity price ‘rally’ as some have described it has come to a halt. Further significant price gains in the near-term are unlikely. However, H2 2015 may provide some support for fundamentals. Nevertheless, returns will remain meagre and warning signs emanating from the macro environment (Grexit etc.) allude to the short-term nature of commodity investment flows.
Net inflows to commodities of almost $7bn in Q1 2015, followed by a month (April) when commodities outperformed most other asset classes (registering double-digit returns as oil prices rose 20%) gave promise to markets. But no sooner had the commodity bulls returned than the spectre of continued sluggish growth and amply supply came back to dent sentiment. Lets face it, the majority of commodities remain in good supply and so the run-up in prices Q1 proved short-lived...............................................Full Article: Source
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