seems like the usa is forcing inflation to get the big pockets off the sidelines and they are going strong in commodities oil contract up 8% since December— companies like wlt, apc, these niggas going hard in the paint then on the greens u got pot, mon, mos rare earth MCP ^66% since dec? so to the question, why so strong? Anticipation of rate increase? Inflation fears? Pending crash? Scarcity worries? more buyers then sellers?
Demand and supply, and inflation due to government printing money. Interest rate increase would lead to lower prices though.
Also because of a weaker dollar
Is everyone forgetting the increased EM demand story? Growth of electronics and cell phone consumption is highest in China, India, Brazil and elsewhere, which is a main use of rare earths. Diets are changing as wealth accumulates in these regions, and petroleum is in higher demand too, as people 1) drive more cars in EM countries, and 2) energy needs increase due to industrialization and transport.
rare earth is up because china controls 97% of the current production. they are now saying that they will limit their exports of these minerals. although there are vast quantities of rare earth elsewhere, it is environmentally impossible to extract these minerals in the developed world. there is simply too much environmental legislation (and probably for a good reason). it’s a race to the bottom, and china is winning.
Lloyd Christmas reads Seeking Alpha
bchadwick Wrote: ------------------------------------------------------- > Is everyone forgetting the increased EM demand > story? Growth of electronics and cell phone > consumption is highest in China, India, Brazil and > elsewhere, which is a main use of rare earths. > Diets are changing as wealth accumulates in these > regions, and petroleum is in higher demand too, as > people 1) drive more cars in EM countries, and 2) > energy needs increase due to industrialization and > transport. yup - major demand behind rising oil prices
Agri names lik POT, MON & MOS are rising cuz of the run up in corn, soybean and wheat prices ( supply situation is really tight with Russia wheat loss, US Corn yield disappointment,etc while EMs and China continues to import record Soybeans and Corn). with the planting cycle to begin next month, these fertiliser names will see good sales and pricing as farmer income is prolly the highest it has been in 25 years.
Yeah, I don’t get this run up either. Energy and food are such fads.