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Wednesday, May 31, 2017

Commodities stagnant

Hi readers

When we look at the commodity market, apart from grains no much interests me.
But with lower oil prices and the outbreak of bird flu across certain parts of Europe and America, the grain market is also stagnant.
Cotton will have a bumper year and prices won't hold, but if the quality isn't there then you might see premiums rise on good quality grade.
Gold is a dead market still I don't see any rise astrological, to take advantage of, if anything I still hold the same view, (850-900).
Regardless of what companies find and start producing, running cost will begin to rise and profit forecasts will drop.
Gold prices can thank Trump for holding up.

Coffee prices are in the same boat stagnant.
Don't know if anyone trades OJ but crop damages are on the way with poor quality, so prices will spike.

On the energy front there is a number factors which people need to start understanding instead of believing media bull shit.

It needs to be said as a reader has found out that yes I did advise the Japanese authorities on purchasing gas from Australia.
At the time there was no market for the gas and price was ideal for a long term deal, to benefit both sides.
Short term it was beneficial to Australia and BHP but long term it would benefit Japan.
Yes it true Japan can take delivery of gas and send it back and still make money.
The biggest error in Australian politics is that terms are far to short and long term planning is never taken seriously, to the detriment of the country and its people.
How a government can't take control and allow the most richest part of the country to be explored for more gas is beyond me.
The amount of gas in Victoria can supply export and local markets easily.
Right there is your problem far too much government.
This summer in Australia it will be hot and blackouts will be daily across the country due to the above.

On shale oil production,it just keeps pushing higher and higher numbers, those that's are listed on the exchanges are exposing there numbers to the marketplace,while those owned privately are keeping numbers close to there chest and increasing.
The Saudi government knows this and will continue to keep pushing production regardless what it releases to the market.
Then once the market realise what's going on prices act accordingly.

In commodities we are in a absorbing phase, before a lower demand and a cut in production cycle.



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