As we mentioned several weeks ago, the steady rise in interest rates is soon to become an issue for a number of markets.
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Dollar Moves Higher; Oversupply For Soybeans
A strengthening US dollar and uncertainties in global stock markets have helped to drive some commodity markets lower over the past few weeks, and the possible appearance of a double top in crude oil has many macro-fund traders getting concerned about the outlook ahead.
Increased Odds of Growth in the US and Abroad
Just when it appeared that the commodity markets were overbought and poised to correct, the US Fed was found to be on-hold “to at least June.”
Positive Sentiment Hard to Come By
The US Federal Reserve appeared to be “threading the needle” with their narrative supporting a December interest rate hike, as they emphasized that the future rate path will be slow and gradual.
Economic Data Has Softened in the US and China
Economic data has softened in the US and China over the last two weeks, yet some commodity funds have been seen bottom-picking.
Long and Slow Global Recovery, Commodities in Downward Motion
One almost can’t tell if the world economy is getting better or worse.
Ongoing Evidence of Slowing in China
Bearish sentiment toward China, equities and commodities is clearly justified in the wake of ongoing evidence of slowing in China, consistent deflationary signals from the crude oil and copper markets, and weak global shipping rates.
What Will Keep China From Becoming the Next Global Headwind?
Positive Shift in Demand Prospects
While the latest string of US economic data sparked some concern over growth prospects, there have been a number of bright spots from China and the Euro zone.
Global Economic Condition Remains Suspect
From the recent action in Treasuries, stocks and physical commodities, one could come to the conclusion that the global economic condition remains suspect.