Commodities

23

Australian dollar breaks 80 cents as Fed balks at lowflation

DXY sank last night: AUD roared above 80 cents: But could not outpace other EM currencies: Gold was firm: Base metals were mixed: Big miners too: EM stocks flew: US high yield too, EM not so much: US bonds were bid: European not so much: Stocks hit record highs again: The Fed balked at lowflation:

13

Is Caterpillar’s great recession over?

From CAT (chart from ZH): CAT now expects FY revenue $42 billion to $44 billion, up $3 billion from the previous guidance provided in April, which was $38 billion to $41 billion, and well above the consensus estimate of $40.85BN . In April 2017, Caterpillar provided an outlook range for full-year 2017 sales and revenues

3

Daily iron ore price update (surge)

Iron ore price charts for July 25, 2017:   Tianjin benchmark jumped $2.80 or 4.2% to $69.70. Paper is at new breakout highs overnight. Steel is holding up. Coking coal is along for the rise. A bunch of positives converged yesterday. Samarco is going nowhere: Brazilian iron ore pellet producer Samarco’s return to operations has been delayed

1

What’s boosting thermal coal?

Via Morgan Stanley: Déjà vu, all over again: Even though China’s National Development and Reform Commission (NDRC)has largely abandoned its controversial 276-day policy, imposed during 2016’s coal industry reform  – its more moderate approach to change this year has helped deliver another deficit.For thermal coal, weak supply growth vs. China’s summer demand kick,have together driven

6

Big Banks trample APRA pansies

Dalian has just flopped into the positive today: With Big Iron down a little: Big Gas is up a bit as one of Australia’s most evil firms, STO, gouges the entire east coast for better profits: Big Gold is still sickening: Big Banks are trampling the APRA pansies: As Big Liar trades sideways: Another ethicists

28

Well done, RBA, you now have the hottest currency on the planet

It’s congratulations all around as Australia’s failing post-mining boom adjustment takes another blow today from the hottest currency on the planet. Against DMs it is on fire: Against EMs it is on fire: Gold has nothing on the Aussie: Though oil pretended everything is OK for now: Base metals fell: Big miners eased: EM stocks

7

I hope the big miners are paying RIO a handsome kickback

Because it sure is taking it for the team. RIO is doing a great job of limiting supply as it finds problem after problem with its fully completed Pilbara 360 iron ore expansion, leaving 30 mt of capacity idle on the shelf: Pilbara operations Pilbara operations produced 157.0 million tonnes (Rio Tinto share 128.7 million

4

More predictions of Chinese scraptastrophe

Via China Daily: China’s iron ore demand is expected to see a continuous decline in the next few years, due to growing awareness of environmental protection and increased consumption of scrap steel, experts said. In 2020, China’s iron ore consumption is expected to reach 960 million metric tons, a decline of 150 million tons year-on-year,

6

USD drives commodity pain trade 2.0

The Aussie is flying against USD and EUR:  And EMs: Gold finally rallied, giving some confirmation to further USD weakness: Brent was soft: Base metals were mixed: Big miners mostly up: EM stocks are in heaven: Tracking a rebound in high yield which is oil dependent: The Us yield curve is flattening again: European spreads

5

Labor MP exposes Adani lunacy

Via The Australian: Queensland Premier Annastacia Palaszczuk’s support for the Adani coal mine has been attacked by one of her own MPs who says coalminers are “worried sick” about losing their jobs because of the project. During parliamentary Estimates hearings today, Labor MP for Bundamba Jo-Ann Miller challenged Ms Palaszczuk to model the impact on

0

FMG adds mine as RIO keeps minnows in business

From RIO: Pilbara operations Pilbara operations produced 157.0 million tonnes (Rio Tinto share 128.7 million tonnes) in the first half of 2017, two per cent lower than the same period of 2016 reflecting adverse weather conditions in the first quarter. Second quarter production of 79.8 million tonnes (Rio Tinto share 65.0 million tonnes) was slightly