| Gold, copper, corn, wheat, iron ore. The list of commodities that have been falling and under pressure over recent weeks and months grows. It would be easy to think there is something they all have in common. A stronger US dollar, rising US interest rates, slowing Chinese growth?
Unlike Tolstoyan families, all unhappy commodities are alike whereas each happy one is happy in its own way. This time last year, with prices still strong, the average correlation among eight diverse commodities had fallen to a decade low of 10 per cent. Since then, amid a slump afflicting everything from gold and oil to copper and sugar, the correlation has increased to 20 per cent. Yet even though the overall CRB commodities index is approaching 2009 lows, the correlation is only half the level back then...............................................Full Article: Source
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