RE:RE:RE:RE:Nevada Copper Posts US$5.0 Million In Revenue, US$3.9 MillioHere is Jeff Curry's most recent take from GS:
Today, commodity markets appear to hold irrational expectations, as prices and inventories fall together, demand beats expectations and supply disappoints. The commodity market has shifted from hoarding supplies to destocking, expecting a slowdown in global growth to lower demand and add additional supply.
Yet should this prove incorrect and excess supply does not materialize as we expect, the restocking scramble would exacerbate scarcity, pushing prices substantially higher this autumn, potentially forcing central banks to generate a more protracted contraction to balance commodity markets.
In our view, macro markets are pricing an unsustainable contradiction — it is difficult to square a softening [financial conditions index], a more accommodative Fed pivot, falling inflation expectations and drawing commodity inventories...[There are] growing tail risks to commodity prices inherent in the scenario of sustained growth, low unemployment and stabilized household purchasing power.
Today, equity and commodity markets are signaling to investors more persistent demand and higher commodity inflation, while rates and inflation curves are signaling an impending slowdown and softening of the economy. Until we see real commodity fundamentals soften, we remain convicted of the former, not the latter...In fact, of the major commodities, only corn and iron ore demand are expected to contract in the near term, as feed demand destruction and a weak Chinese property sector drive micro-related softening
Ofc, he was calling for $5-6 copper this fall back in March and didn't see $3 copper before then, so not 1000 batter. Or, I should say, he did not tell the public that $3 copper was in the cards, who knows wot the internal GS teams were told.
God bless.