Some commodities are already turning higher, notably precious metals (both gold and silver) and some soft commodities such as coffee, cocoa, dairy products and some meat and cooking oils. At this stage, we haven't seen a lift in wheat, but corn is looking more solid. Industrial commodities connected to China remain subdued, as does energy. But for industrial commodities in supply deficit such as copper and platinum, it wouldn't take much to shift their price momentum higher.
indeed, crude sure is trying to get out of its trading range, I suspect that will be a key trigger, but yes market probably needs to see more evidence of stimulus + better macro out of China (n.b. most of the early-warning stuff I track on China is starting to turn -- getting less bad...)
It looks like commodities are still waiting for more China stimulus to be confirmed (and approved by the market). When I see the commodities index it looks a lot like the HSI technical pattern.
So…there is value and the macro story seems to be going to the right direction, we
just have to wait for the final trigger (or buying the dips, depending on your style 😂)
Some commodities are already turning higher, notably precious metals (both gold and silver) and some soft commodities such as coffee, cocoa, dairy products and some meat and cooking oils. At this stage, we haven't seen a lift in wheat, but corn is looking more solid. Industrial commodities connected to China remain subdued, as does energy. But for industrial commodities in supply deficit such as copper and platinum, it wouldn't take much to shift their price momentum higher.
indeed, crude sure is trying to get out of its trading range, I suspect that will be a key trigger, but yes market probably needs to see more evidence of stimulus + better macro out of China (n.b. most of the early-warning stuff I track on China is starting to turn -- getting less bad...)
It looks like commodities are still waiting for more China stimulus to be confirmed (and approved by the market). When I see the commodities index it looks a lot like the HSI technical pattern.
So…there is value and the macro story seems to be going to the right direction, we
just have to wait for the final trigger (or buying the dips, depending on your style 😂)
indeed, good point!
👍🏻👍🏻👍🏻
(we love to see it)