Why commodity prices rise together with inventories?
Posted on 18. fév, 2010 by Jean Jacques Ohana in Weekly Focus
In traditional commodity cycles, commodities prices tend to rise when inventories decrease and conversely drop when inventories increase. This mechanism is highly intuitive since when inventories are rising (resp. declining), we can infer that the supply is large (resp. low) in face of demand, which translates into a downward (resp. upward) pressure on prices.
The traditional [...]
Tag Archives: Copper
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