Salient to Investors: Copper shortages will extend into half1 2013 due to an accelerating China more than doubling the pace of growth in global consumption even as mines extract a record amount of metal. Barclays predicts demand will outpace supply in half 1 2013 by more than all copper in LME warehouses, before a
READ MORE... →Salient to Investors: Hedge funds et al increased combined net-long positions for the first time in 7 weeks. James Paulsen at Wells Capital Mgmt sees many reasons why we are turning the corner, and says growth in the US and China supports being in commodities. Societe Generale said Chinese manufacturers are seeing the light at the
READ MORE... →Salient to Investors: Bill O’Neill at Merrill Lynch Wealth Mgmt said: He owns gold for diversification and catastrophe insurance, and expects prices to rise above $2,000 in 2013. Prospects for industrial metals are dim due to a lack of clarity on demand from China, their inventory levels. Global growth will improve slightly next year to 3.2
READ MORE... →Salient to Investors: US farmers are having their most-profitable year ever because of record-high prices and insurance claims and despite the worst drought in a half century. The government predicts food inflation will accelerate next year, led by meat, dairy and baked goods. The UN said says the global cost of food imports
READ MORE... →Salient to Investors: Gold is headed for a 12th consecutive annual gain, the longest streak in data going back to 1920. Bullion held through ETPs reached a record 2,603.7 tons on Nov. 16, exceeding the official reserves of every nation except the U.S. and Germany. Investors bought 247 metric tons through
READ MORE... →Salient to Investors: Edward L. Morse at Citigroup said the super cycle of commodity prices gains has ended as China shifts to slower growth and supplies increase, and conditions approximating those of the last decade will not return any time soon. Morse said prices won’t move sharply higher even as global stimulus lifts
READ MORE... →Salient to Investors: Hedge funds cut bullish commodity bets for a sixth straight week, the longest slump since the depths of the global recession four years ago, on mounting concern that economies are slowing. Investors turned bearish on copper for the first time since August. Morgan Stanley said weaker growth
READ MORE... →Salient to Investors: Tim Worstall at the Adam Smith Institute writes: Jeremy Grantham is horribly mistaken when he talks about drastically reducing the use of phosphorus and potassium in the next 20–40 years else they run out and we begin to starve. Grantham is looking at mine reserves as if
READ MORE... →Salient to Investors: Justin Smirk at Westpac Banking focuses primarily on economic cycles, central banks and financial markets to make commodity predictions. He says: Industrial metals will rally through June 2013 as the economy strengthens in China. China’s economy is at a turning point both for policy and inventories, said We are at the worst
READ MORE... →Salient to Investors: Raymond Key at Deutsche Bank said gold will rise to a record above $2,000 an ounce in 2013 as central banks continue to print money, but don’t expect too much as the rally is maturing. Jeremy East at Standard Chartered said gold will be the best performing metal, driven by the ETF.
READ MORE... →