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Recent strength in precious metals and weather affected grains has seen commodities prices largely higher for the first half of 2019, the energy heavy GSCI is up 16.% on the year with the more balanced Bloomberg index up 5%.

Soft demand for aluminum and cost deflation has seen LME futures prices in narrow range with low volatility. China is the world’s top aluminium producer and continues to defy low prices as falling alumina costs boost margins.

China's Luckin Coffee is making it's first overseas move, opening coffee shops in the Middle East and India after it raised $561 million in May in a U.S. IPO. $LK aims to unseat Starbucks as the No.1 coffee chain in China 

Morgan Stanley raised their price forecast for gold on Monday night in a note to customers after the metal hit six month highs. The $MS rationale is much like Goldman in March,  higher ETF inflows, geopolitical risk, weaker U.S. dollar and negative real interest rates in Europe.

United States Steel on Tuesday lowered guidance saying will cut production by idling two blast furnaces in the US and one in the EU. $X responded to falling demand for steel from a weakening manufacturing sector. Earnings were also hurt by a coking plant fire and lower Mississippi River barge traffic.

One of the biggest trump cards China has with the U.S. is rare earth metals. The 17 elements that are rare earths are mined in the majority in China and are crucial to the modern economy, Electric cars, military, cell phones and wind farms.

American companies dependant on rare earths, which China controls the majority of, include military companies such as Raytheon Co, Lockheed Martin Corp and BAE Systems Plc. Tech companies such as Apple use rare earths for it's phones.

Australian rare earths miner Lynas reported a 27% jump in revenue to $101.3 million in Q1 despite a forced shutdown of its Malaysian operations in December. Radioactive waste concerns are clouding $LYC ($LYSCF), who rejected an unsolicited $1.5 billion takeover bid from Wesfarmers.

Australian gold producers hit an all-time production record in 2018. Australia produced 317 tonnes of gold in 2018, breaking the previous record of 314.5 tonnes set  21 years ago. Gold prices timed the opportunityfor Australia with an all-time record of AUD 1876 per ounce on February 20.

Goldman Sachs raised their price forecast for gold and silver on Monday night in a note to customers. The $GS rationale is higher ETF inflows, Geopolitical risk, stronger emerging markets, weaker U.S. dollar and negative real interest rates in Europe.

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