Barclays: Bull Run In Commodities Ending

Commodities have performed well in 2016, particularly since late January. But the relative rally in commodities might be short-lived, a Barclays research piece observes. In fact, a rather dramatic fall in commodity prices could be ahead.

Commodities vulnerable to price reversal

“In the absence of any concerted fundamental improvements, those returns are unlikely to be repeated in Q2, making commodities vulnerable to a wave of investor liquidation,” the Barclays commodity piece predicted. But not just a little vulnerability, there could be a significant market reversal. In a worst case scenario, commodity prices could be knocked down by as much as 20-25%...