BREE raises commodity revenue forecasts

The Bureau of Resource and Energy Economics (BREE) has released its December quarter commodity price forecasts and the news is good if you believe it with exports up 17% this year financial year to $205 billion (that’s up a billion and change from September’s forecast):

The growth is driven largely by a $6 billion upgrade in the value of iron ore exports on the back of an extraordinary 23.3% volume increase:

I’ve previously criticised BREE for extreme optimism around bulk commodities but I’ll have to eat some humble pie today. The miracle commodity has delivered so far.

BREE sees iron ore settling at $120 for next year, still higher than me, especially on that huge volume growth (and same for met coal):

So I may yet get my revenge.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.