Daily FNArena News - Commodities

As copper supply drifts to surplus the metal’s outlook is enmeshed in the Chinese property market. UBS looks at infrastructure plans to transport coal in the Galilee Basin.

Real buyers and sellers have become price sensitive in the uranium market making for steady trade with little participation from utilities.

Ahead of the Herd’s Rick Mills believes there are compelling reasons to invest in junior resource companies.

The US dollar rallies and metal prices fall, usually. Brokers look at rising copper production and portend an oversupply in iron ore.

Jonathan Barratt of Barratt’s Bulletin suggests gold’s resilience suggests a bullish stance although silver’s tardiness may provide for outperformance.

Uranium prices have been falling or lying limp for almost five years now, but the market is much tighter than most realise.

Chinese steel movements pressure iron ore price but Oz miners are still competitive if price stays well above US$80/t. Base metals outlook continues to diverge.

Brokers find coal looks forlorn while gold costs loom large. Nickel is stuck in a range while oil & gas producers may soon become yield stocks.

Jonathan Barratt of Barratt’s Bulletin believes copper may have seen a low, as long as Chinese economic data pick up post the New Year’s disruption.

Short positions have increased in silver and gold while Oz copper stocks underperform the metal. Time to buy aluminium on dips, and DAP prices improve.