Is the commodities rally came to an end?

A rally was fueled by today as expectations for global recovery, with “background” the frantic pace of development, and the resulting surge in demand, in emerging economies such as China or India, and the weak dollar result and mainly quantitative easing measures in the U.S..

The new “dip” in commodity markets, oil, gasoline, and prices of agricultural products, precious and industrial metals, sparks new debate about whether the many months rally reached or is nearing to completion

Furthermore, the duration and intensity of growth was such that attraction was a large volume of speculative capital, drawing on many commodity markets unskilled investors. As a result, fluctuations in prices began to reflect less and less to fundamentals …

In time, the cheap money from the U.S. channeled the majority of the equity markets of emerging economies in search of high returns, but also in markets of goods, as noted recently by the chief investment officer of Merrill Lynch, Bill O ‘Neil, «reflect now fairly dynamic emerging economies. ”

The surge in prices, especially as regards agricultural products and a host of other commodities such as coal, iron ore and its derivatives were in the meantime “ally” … the phenomenon La Nina, and adverse weather conditions seriously affected the level of supply in many countries (guide floods in Australia), creating pressures on global supply-demand balance.

Recent moves by the CME which rose sharply in transaction costs in silver futures had two immediate effects: first “kicked” by buying the metal net short-term speculative capital but caused a degree “collateral damage” to other goods has forced investment funds internationally at a comprehensive reassessment and review their strategies against the goods.

In this reassessment and review now entering new variables, such as overheating emerging economies and the efforts of central banks to control interest rates through increases in inflationary pressures.