Tags » Commodity Prices

What Happens to Commodities When Interest Rates Finally Rise?

September 9, 2016

There is a significant historical relationship between commodity prices and interest rates. In my latest article for About.com, I explain the correlation between raw materials, rates of interest and the dollar. 31 more words

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Higher Rates Increase The Cost Of Carrying Commodity Inventories

September 6, 2016

The Fed told us that an interest rate hike is ‘imminent’ two weeks ago and last Friday’s employment report was a non-event higher interest rates are bullish for the dollar and a double-bearish whammy for commodities prices. 68 more words

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Commodity pricing divergence calls for 'discerning and tactical' investors now that it's tougher to pick winners

During the commodity bull market from 2002 to 2011, it was almost impossible not to make money in this space. The price of nearly every energy, metal and agricultural commodity dramatically rose, driven by China’s massive economic growth. 961 more words

Mining

Indonesia Surprises with Strongest Growth in 10 Quarters

Indonesia surprised with its strongest growth in 10 quarters in April-June, spurring some economists to predict it will outperform most Southeast Asian nations the rest of this year. 564 more words

International

The Fed Sets the Path for Higher Commodity Prices

August 1, 2016

The Federal Reserve spoke last week and left interest rates unchanged. The next meeting of the central bank will come in September. In my latest article for CQG, I explain why eight months of unchanged interest rate policy will likely mean gains for some commodity prices in the face of an accommodative Fed that makes promises and hawkish statements but has only had excuses or pledges rather than action in 2016. 31 more words

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A Strong Dollar Takes A Toll On Commodities

August 1, 2016

The dollar rallied after the Brexit vote and is currently a lot closer to the highs since May 2014 than the lows.In my latest piece for Seeking Alpha I explain why dollar strength is nothing but a mirage when it comes to commodity prices and why we could see a breakdown in the historical inverse relationship between the dollar an raw material prices. 41 more words

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Deflated Inflation Expectations

We’ve written before about inflation and its corrosive effect over time. The topic has become much more timely because of two developments:

1. The prospects for inflation have gone up with the large increase in the price of oil and other forms of energy. 372 more words

Mark Leibman