Salient to Investors:
Chad Morganlander at Stifel Nicolaus said a structural shift in China’s economy and European economic woes will pressure commodity prices – China over the last few years artificially torqued its economy.
China is the world’s biggest consumer of everything from copper to pork to soybeans, while the U.S. is the largest user of crude oil and corn.
Adrian Day says it is clear that Europe’s economic and debt problems are not over, and stimulus will have to translate into great economic activity for it to have a meaningful, sustained impact on commodities other than gold.
Jonathan Guyer at Longview Funds says output concerns globally will underpin commodity prices, and they will rally and continue to get a boost as the worst U.S. drought since 1956 curbs grain and oilseed production and tension in the Middle East crimps oil output.
EPFR Global said investors added $2.36 billion to raw-material funds last week.
Jack Ablin at BMO Private Bank said the commodity super-cycle of the past 10 years is over.