Iron ore exports from Brazil and Australia fell 28% and 8% respectively in November. Spot prices are at a six week low and pressured to shrink for the rest of the year thanks to flaccid Chinese demand.
Overnight emerging markets equities were broadly lower. Market participants cautiously moved to the sidelines ahead of U.S. Federal Reserve Chairman Ben Bernanke’s speech from Jackson Hole at 10 a.m. EDT today.
Join Tim Seymour on CNBC at 10:20 a.m. today, as Tim discusses a mixed bag for commodities which are tied to emerging markets fortunes, housing and construction data for the U.S. and China, and how soaring grain prices may result in export quotas to further limit supply.
A few thoughts on what’s happening in emerging markets as we head into the week.
Friday’s best web covers a new Chinese stimulus program, renewable energy in Bulgaria, Russian potash production, VALE earnings and Chinese relations to Ukraine.
With Chinese and European manufacturing data coming in lighter than expected, the euphoria from the EU summit banking decision on Friday dissipated in Monday commodities trading.
Stocks throughout the commodity universe have tanked as traders come to terms with the prospect of a deeper than expected slowdown in China. It’s okay to lighten up, but underlying supply and demand equations are holding up a lot better than an apocalypse would entail.