If you look closely at the charts for Natural Gas, Platinum, Copper, Silver, you can see that these are experiencing a U-shaped flattening of prices. Oil is continuing on its epic, stronger downtrend. For the time being, there appears to be little support for commodities prices as weakening economic fundamentals, sentiment, negative wealth effects and deleveraging are leading to vicious-cycle demand destruction. A turn in the Baltic Dry Index while still not anticipated would herald a favourable turn in global activity.
Charts: Bespoke Investment Group
