Daily FNArena News - Commodities

Barclays Capital suggests markets are watching commodities for signs of a growth rebound, which would push prices higher.

While Chinese demand is strong it isn’t enough to cut into current stockpiles.

Barclays Capital suggests the market may be too bearish on a slowdown in Chinese commodity demand in coming months and with other markets picking up it expects the uptrend to continue.

The price of sugar may have soared to new multi-decade highs, it is still 70% below its peak from the mid-seventies.

Barclays Capital expects any recovery in natural gas demand will be weaker than the expected pick-up in US industrial production.

The China story has run its course, suggests Barclays, and investors should now watch the US and Europe closely.

China’s unwillingness to commit to iron ore contract prices is creating uncertainty in the market.

In the next few years, a number of major global zinc mines will close due to ore depletion.

Barclays Capital notes oil demand is more sensitive to economic growth rates in Asia than in other regions.

Barclays Capital suggests a normalisation of the oil market balance requires higher prices to be achieved.