Commodities

Cross-posted from Izabella Kaminska at FTAlphaville: Glencore has put out a funding fact sheet on Wednesday in a bid to settle nerves over the scale and scope of its market-dependent leverage.

Here are the iron ore prices for October 6, 2015: No charts today because markets are still closed for China’s Golden Week.

The hysterical rally in global resource stocks in nicely illustrating the sense in the MB strategy for dealing with this bear market.

From Citi: Poor capital allocation has been one of the key reasons for the significant underperformance of the sector over the past few years, which was fuelled by strong cash generation in the supercycle with lower propensity to give cash back as shareholders were probably chasing growth rather than yield.

The Brent oil price rose 2% overnight to $49.24.

Here are the iron ore charts for October 5, 2015: China is closed for Golden Week so some data is old.

From the AFR: Woodside Petroleum is ramping up pressure on South Korea to sign up for liquefied natural gas from its proposed Browse floating project, emphasising it is in the nation’s interests to see the project move ahead given the boost it would give to the economy and jobs.

Brent is down already this morning on news that Saudi Arabia has slashed it prices again, from Market Watch: In a list of official prices sent to customers, state-oil company Saudi Aramco cut the price of its light-crude deliveries to Asia by $1.7 a barrel.

From Domainfax: The signals we are seeing pointing toward a bottoming of the sector are sounding very loudly right now.

Here are the iron ore charts for October 2, 2015: Qingdao spot tanked in a big catch up to benchmark.

And so, here comes the sell side with JPM turning bearish on LNG: #1: Asia LNG demand slowdown confirmed All participants shared a cautious view on near-term demand trends, with Japan and South Korea likely flat to down and China gas demand growth having slowed this year.

The oil price firmed Friday night as the US dollar weakened along with rate hike prospects following the dodgy jobs report, and the US rig count was walloped 26 to 614.

The big iron dead cat has run out of puff today for no obvious reason other than it is dead.

Here are the iron ore charts for October 1st, 2015: More bad data. Despite Chinese markets being closed and the hopeful tone in global markets, Qingdao iron ore fell (benchmark was up 0.1%), paper markets barely budged and coal is looking ill, which won’t help Glencore when equities finally get over their short squeeze.

Brent oil fell last night after rallying close to $50 and finished at $47.95.

From Fairfax: Deep value funds manager Simon Mawhinney from Allan Gray has been buying selectively in the battered resources segment, but he admits “we’re not seeing any light at the end of the tunnel”.

From Fairfax: RBC Capital Markets has raised its call to outperform.

The big iron dead cat continues to howl with BHP up 1.5% and RIO a little less.

The Brent oil price rallied with broader markets last night settling at $48.51 as I write.

Here are the iron ore charts for September 30, 2015: Tianjin benchmark fell 0.6% to $54.40.

From Bartho: In the midst of a destabilising bout of market turbulence, with a share price that has more than halved in three months and having seen what happened at Santos, Origin Energy’s Gordon Cairns and Grant King have moved decisively to avert a crisis.

Big iron is riding the dead cat higher again today though the paralytic moggy is not looking very rubbery.