Daily FNArena News - Commodities

The mood inside China remains cautious, although analysts at ANZ expect solid steel output to provide some support for iron ore prices.

Jonathan Barratt of Barratt’s Bulletin believes a bounce in the price of copper from recent weakness is likely, although not before further consolidation.

Low CV coal imports, steel demand and iron ore. Aluminium output cuts and copper supply disruptions.

Sector analysts are growing increasingly optimistic about the prospect of some sort of reversal in uranium prices, but in the meantime the spot price continues to soften.

An improving US economy is signalling a turnaround in the US dollar but the factors supporting this trend are slightly different this time around, with implications for commodity prices.

Price momentum should improve among commodities, the lead market is balanced while coal still has it tough and Citi wonders what can be done about iron ore volatility.

Jonathan Barratt of Barratt’s Bulletin sees gold suppoted as physical purchases from central banks offset paper market selling. Opportunities are also presenting in platinum and palladium.

May was another slow month in the uranium market as buyers and sellers moved further apart.

A continuation of subdued growth is expected in 2013. Base metals, coal, gas and oil prices are expected to remain soft.

Gold is either overvalued or undervalued and as always, it is difficult pick either one or the other.