Commodities

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Iron ore prices have continued to rise sharply following ongoing Chinese industrial output, Prices for iron ore cargoes with a 63.5% iron content for delivery into Tianjin jumped to $172 per tonne in the third week of January. The highest level since October of 2011. At the same time Rio Tinto saw a 2.4% rise in Q4 iron ore shipments.

Chicago based Hedge fund Citadel has made massive profits on it's commodity investments in 2020, over $1 billion according to Reuters.  Much of the gains were in oil and gas from the price swoons from the Covid demand meltdown, Large gains were also said to be have made in agriculture commodities. 

Three months can be an eternity and that is what it was for energy futures in particular. Futures and commodities were hit violently in the first quarter of 2020 with the black swan Covid -19 running roughshod. In Q2 bounces in equity and energy markets were spectacular.

The US consumer credit outstanding in February came in at +$22.33 billion much higher than the +$14.0 billion expected and from the +$12.02 billion last month. This was before the economic shutdown to the economy.

Futures and commodities were hit violently in the first quarter of 2020 with the black swan Covid -19 event running roughshod over energy markets in particular. The biggest gainers were safehaven elements such as the VIX, treasuries and foodstuffs.

Gold exploded over $80 higher, the largest daily dollar gain ever following the Federal Reserve's massive new stimulus package that includes unlimited purchases of Treasurys and mortgage-backed securities.

Goldman Sachs raised their price forecast for gold on Friday in a note to customers on Coronavirus fear. $GS had previously cited Modern Monetary Theory to higher ETF inflows, Geopolitical risk, stronger emerging markets, weaker U.S. dollar and negative real interest rates in Europe .

Goldman Sachs raised their price forecast for gold on Monday night in a note to customers. $GS added Modern Monetary Theory to higher ETF inflows, Geopolitical risk, stronger emerging markets, weaker U.S. dollar and negative real interest rates in Europe as reasons.

The New Zealand ANZ commodity price index rose 4.3% in November, up sharply from a 1.2% gain in October. The rise was the larget gain since September 2016. Beef prices soared 19% m/m pressured by overseas supply constraints.

Iran is anticipating massive demand for its copper from Turkey in the coming years and is investing $1bn to expand copper production. Iran is opening one of the largest aluminum smelters in the Middle East with over $1bn in investment.

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