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  • Editor’s Picks / Wednesday at 11:10 GMT

    The biggest loser in the commodities space

    MarketWatch
    The commodity index has retraced to levels last seen in 2002, and gold's slump to a five-year low is dominating headlines. Gold, however, is not the biggest loser in the commodities space – that honour (of a sort) goes to coffee. According to MarketWatch's William Watts, coffee prices are down 23.5% since the end of 2014, with the commodity "feeling the pangs of a weaker Brazilian currency, favourable harvest conditions in that country and expectations for a rebound in inventories". Although coffee's woes may be local and climactic in nature, the broader selloff in commodities is due to several structural factors. “The wider commodity market is seeing plenty of downward pressure on the back of an ever-strengthening dollar,” notes Oanda analyst Craig Erlam, with Watts adding that the Federal Reserve rate hike expected later this year is likely to give the greenback yet another boost.
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  • Editor’s Picks / Wednesday at 8:32 GMT

    El Nino's coming — traders get ready

    Bloombergview
    There will be big winners and losers in this year's El Nino which is expected to peak strong and last into the early part of 2016, writes Brian K Sullivan. That is likely to be a boon for weather-related commodity items like coffee and cocoa, but some economies could lose billions of dollars if the weather phenomenon wreaks havoc on their coastlines. Bunker down, umbrellas up and get ready for a rollercoaster over the second half of this year.
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  • Article / 17 July 2015 at 12:58 GMT

    WCU: Iranian deal rattles oil markets

    Head of Commodity Strategy / Saxo Bank
    Denmark
    WCU: Iranian deal rattles oil markets
    The stronger dollar has been creating headwinds across commodities with gold testing critical levels and crude oil under pressure for a third week. Elsewhere grains reversed some of the recent strong gains while cocoa and coffee found support.
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  • Article / 14 July 2015 at 7:17 GMT

    COT: Bearish on energy and metals, bullish on grains

    Head of Commodity Strategy / Saxo Bank
    Denmark
    The move from energy and metals to grains continued last week. Crude oil bulls have been heading for the exit in droves on falling prices. Metals were sold again with gold hitting the lowest net-long since at least 2006. Positioning across many commodities is hitting extremes as we head into the low liquidity season.
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  • Article / 06 July 2015 at 12:20 GMT

    Commodities hurt by faltering growth prospects

    Head of Commodity Strategy / Saxo Bank
    Denmark
    Commodities hurt by faltering growth prospects
    Commodities are weaker across the board after Greece rejected debt bailout terms and China rolled out emergency measures to prevent a full-blown stock market crash. This is adding to worries about poor demand growth at a time of global oversupply of several key commodities including oil, copper and iron ore.
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  • Article / 29 June 2015 at 7:53 GMT

    COT: Buyers return, but only in grains via short covering

    Head of Commodity Strategy / Saxo Bank
    Denmark
    COT:  Buyers return, but only in grains via short covering
    Hedge funds increased their bullish exposure to commodities by 15% during the week of June 23. But the buying was concentrated in the grain sector where a potential fundamental change in the outlook triggered some aggressive short covering. Gold was the exception among the metals where selling, not least of copper, continued.
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  • Article / 22 June 2015 at 8:09 GMT

    COT: Hedge funds cut agri exposure and raise energy

    Head of Commodity Strategy / Saxo Bank
    Denmark
    COT: Hedge funds cut agri exposure and raise energy
    Hedge funds were net sellers of commodities during the week ending June 6. The 27% reduction to the lowest exposure in two months were triggered by broad based selling of agriculture commodities and continued selling of metals. The energy sector were generally bought primarily due to short covering in natural gas.
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