Torrid Commodities Rally Crumbles

May.19 — Is the commodities complex crumbling? Everything from oil to soybeans is falling after this space surged more than 80% in the past few months. This comes just weeks after bold calls of a raw materials supercycle from the likes of Goldman Sachs Group Inc. and Citigroup Inc. Bloomberg’s Jason Rogers reports on “Bloomberg Daybreak

6 thoughts on “Torrid Commodities Rally Crumbles

  1. Go Amazon, Apple, Facebook, Twitter, Nvidia, Microsoft, Netflix. Disney and Wells Fargo for the recovery_______

  2. United States well services USWS on the NASDAQ should do well in this market. Commodity service companies will do well. This is not financial advice.

  3. As I say from many previous days, betting on this so called commodities supercycle is based on the hasty conclusions and illusions.
    CHINA has so much range of options to battle with this highly speculative manner on commodities from inventory to fiscal support. They can even ramp up more from their domestic sources if they want to and increase optimization and effeciency further on their heavy industries which is inline with their deleveraging campaign and decarbonization. CHINA also can ramp up other foreign sites in the coming years mostly from Asia and Africa particularly from DR Congo, Guinea, Bolivia, Iran and Russia. If you follow the trade deals and infrastructures which are in full swing linking these countries to CHINA, you will know that supply will be very met in the future in CHINA's perspective. Not to mention that CHINA's interest now is very keen on quality of growth, decreasing of excess capacity, deleveraging in financial system and decarbonization.

    Another reason is that this speculative nature in commodities are partly driven from massive QEs from OECD countries which are not really based on fundamentals to be honest. Stimulus and monetary support are somewhat being partly phasing out in OECD countries.

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