Why oil is rising, gold falling and crops wilting: Ole Hansen, Saxo Bank Head of Commodity Strategy
Why oil is rising, gold falling and crops wilting: Ole Hansen, Saxo Bank Head of Commodity Strategy. Weakness in agriculture commodities and precious metals created the first month of selling in the DJ-UBS commodity index since last November, while crude oil prices rose as US demand increased and inventories dropped to their lowest level since 2008, according to Saxo Bank Head of Commodity Strategy, Ole Hansen. Arabica coffee has been the biggest climber this year but suffered heavily in May as Brazilian coffee production levels were estimated higher than originally forecast. Corn and wheat also ran into heavy selling in May as planting pace and favourable weather across the northern hemisphere raised the spectre of a bumper crop. Gold continues its fall from grace, and Hansen says strong equity markets reduce the need for alternative investments in portfolios. (VIEW LINK)
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