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Commodities are mixed for the second quarter to date, say analysts with Barclays Capital. Of the markets they track, 11 have a gain, 11 have a decline and one is unchanged. ?€œFour out of the six best performers for Q2-to-date rank among our favorite exposures, with oil, corn, carbon and gold recording increases of 13%, 10%, 10% and 8%, respectively, relative to Q1 averages and where, in our view, price risks remain skewed to the upside,?€ Barclays says. ?€œAt the other end of the spectrum, three out of the five worst performers are among the markets we hold a less positive view on, with sugar, cocoa and zinc all exhibiting declines.?€ Copper, U.S. natural gas and platinum group metals have relatively neutral performances so far this quarter but are markets in which temporary factors have counteracted fundamental dynamics. In PGMs, disruptions in the auto industry?€™s supply chain after a Japanese earthquake weighed on auto-catalyst demand. ?€œYet, when demand picks up, structural supply constraints should tighten market balances, tilting price risks to the upside, in our view,?€ Barclays says. ?€œIn copper, destocking along the supply chain, particularly in China, has masked underlying demand strength, weighing on prices. However, physical indicators in the Chinese market have turned more constructive of late, signaling tightening conditions. We expect the copper market to tighten substantially over H2 and for prices to hit new highs later in the year.?€
By Allen Sykora of Kitco News;
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Authors: Commodities - Yahoo! News Search Results
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