(Bloomberg) China’s efforts to rein in surging commodities prices are likely to be in vain as it’s lost the ability to boss the market around, according to two of Wall Street’s biggest firms.The speed of the rebound in demand in advanced economies, particularly the U.S., means China is no longer the buyer dictating pricing, Goldman Sachs Group Inc. analysts led by Jeff Currie, the bank’s global head of commodities research, said in a note.That view was echoed by his equivalent at Citigroup Inc., Ed Morse, who said in a Bloomberg Television interview Friday that despite China’s efforts to curb price gains, the real supply-demand balance prevails.The largest buyer of many commodities, China has been trying to temper the rally due to fears over inflation. Its actions have had some success, with local iron ore prices down more than 20% since May 12. But other raw materials have been more difficult to manage. The Bloomberg Commodity Spot Index is only do
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‘Itâs not a market for the faint of heart,’ said Matt Bennett
By Kim Chipman and Natalia Kniazhevich, Bloomberg
27 May 2021 07:59
Image: Andrey Rudakov/Bloomberg
Wild swings in commodities ranging from US farm products to industrial metals are the latest sign that traders should brace for dizzying months ahead.
Prices cooled off this week for commodities including corn, wheat, copper and iron ore, though traders and analysts alike say itâs too soon to count out agricultural crops and metals. The Bloomberg Commodity Spot Index, which includes energy, has tumbled 2.4% in the past two weeks, trimming returns to 19% for the year.