Rally in metals prices looking increasingly stretched

Commodity prices pushed higher yet again this week. Most notably, the seemingly unassailable climb in industrial metals prices saw the price of copper push above $10,000 per tonne for the first time since 2011. However, it is still difficult to square the continued rise in industrial metals prices with the fundamentals. After all, the latest trade data suggest that demand for metal in top consumer China is waning, and many of the constraints on metals supply have continued to ease. Therefore, we continue to anticipate that industrial metals markets will undergo a bit of a reality check before the year is out, as weaker underlying demand and higher supply eventually translate into lower prices. There is little in the way of major data releases next week. Instead, we think prices will take direction from developments on the virus front, particularly in India where the recent surge in new infections looks to be approaching its peak. If this trend continues, it may help to alleviate some of the lingering concerns surrounding weaker commodities demand in India, which should support prices. Drop-In: The lumber price rally and the risks to the US housing market 0900 PT/1200 ET/1700 BST Tuesday, 11^th May US house prices have been surging – but so have prices of lumber. Can lumber’s record price rally continue, and what does this mean for US homebuilders and our US housing market outlook? Join Commodities Economist Samuel Burman and Matthew Pointon, the head of our US Housing service, for a discussion about spill-over effects, the sustainability of current lumber prices and how they might – or might not – affect our forecast for the US housing market. https://event.on24.com/wcc/r/3171759/A02FFFE6C9D9485988631E7D1112CB8E?partnerref=report