Invesco DB Commodity Index Tracking Fund
Latest Invesco DB Commodity Index Tracking Fund News and Updates

What Are Analyst Recommendations for Apache?
Wall Street analysts gave mixed recommendations after Apache’s quarterly results. Apache shares fell 5% on November 6, 2015, after the earnings release.

Why It’s No Surprise that Alcoa Cut Aluminum Demand Guidance
Alcoa has revised down its 2016 global aluminum demand growth projection to 5%.

Could Alcoa’s Split Create Shareholder Value?
As an Alcoa (AA) shareholder, you might like to know whether the split will create value. The value, in this case, would basically mean whether the two separate companies would be worth more than the combined entity.

Where Will Commodities Head during Trump’s Term?
Donald Trump’s policies are aimed at strengthening job markets in the United States (VFINX) (IVV).
Things you need to do today before inflation takes off
So what should investors be doing today? While inflation may take another year or more to get going, it’s not too early to start implementing long-term inflation hedges.

Freeport-McMoRan Sees More Room to Cut Costs
Freeport-McMoRan expects its copper unit cash costs after by-product credits to be $1.10 per pound in 2016, a year-over-year reduction of more than 28%.

China’s Steel Prices Might Have Started Giving Up: More Downside?
One of the most dominant factors driving iron ore’s price rally is rising steel production and the resulting increase in steel prices in China (FXI).

Could the OPEC Meeting Have an Impact on Alcoa?
It could be déjà vu for Alcoa (AA) investors after the OPEC meeting on December 4, 2015. Last year’s decision to maintain daily crude output had a negative impact on all commodities.

What Caused the U-Turn in Oil Prices?
On February 15, 2018, US crude oil’s April 2018 futures rose 1.1% and settled at $61.17 per barrel. On the same day, the US dollar fell 0.6%.

Why the Aluminum Supply Deficit Is Not Causing Premiums to Strengthen
US Midwest aluminum premiums are currently quoted at $0.07 per pound. Premiums have fallen slightly in July and are now down more than 22% year-to-date.

Can Higher Chinese Aluminum Exports Spoil Alcoa’s Party?
China exported 350,000 metric tons of unwrought aluminum in October. Chinese aluminum exports fell ~1.8% YoY in the first ten months of 2016.

Cliffs’ US Realized Prices Have Ample Upside in 2017. Here’s Why
Cliffs Natural Resources’ average realized prices were 0.5% lower YoY in 4Q16 at $73.8 per ton.

Analyzing the Weakness in Crude Oil
On March 8, 2018, US crude oil April 2018 futures declined 1.7% and closed at $60.12 per barrel.

Inside BHP Billiton’s Iron Ore Price Concerns
Iron ore prices were very strong in 2016 and have remained so year-to-date. Prices increased by more than 80% in 2016.

The Benefits of Real Asset Investing
In essence one of the things we have accomplished with these three products is to reduce the volatility inherent in all markets, and in particular very volatile markets like the real asset sectors.

Freeport-McMoRan Looks to Control Costs amid Copper Price Slump
Copper companies have been working to reduce their unit production costs to survive the current slump in copper prices.

Watch for the Effect of Commodity Prices on Alcoa, Arconic
Alcoa (AA) is gearing up for its split, which is scheduled in the second half of 2016. After the split, the value-added company—which will be named Arconic—will produce precision components and other value-added products.

Is the Pullback in Iron Ore Miners Based on Technical Indicators?
Among the stocks under review in this series, Vale SA (VALE) has given the highest trailing-three-month return of 36.4%, while Rio Tinto (RIO) has generated the lowest return of 15.4%.

Why Rio Tinto Believes Iron Ore Prices Can Sustain
According to Bloomberg, Rio Tinto CFO Chris Lynch has suggested that iron ore prices will not collapse, as many expect.

How Analysts View Freeport after Its 3Q17 Earnings Beat
Freeport-McMoRan released its 3Q17 earnings on October 25, posting revenues of ~$4.3 billion in 3Q17, compared with ~$3.7 billion in 2Q17.

Why September Popped for Freeport-McMoRan’s Investors
On September 12, Freeport-McMoRan (FCX) announced the sale of its Deepwater Gulf of Mexico energy assets to Anadarko Petroleum (APC) for a cash consideration of $2 billion.

Inside Copper’s 2017 Demand-Supply Dynamics
Copper’s 2017 demand-supply dynamics As noted previously, copper prices have shown strength recently, piggybacking the weak US dollar. However, we should remember that in the medium-to-long term, demand-supply dynamics are a key driver of copper prices (TECK) (GLNCY). In this article, we’ll see how copper’s demand-supply balance looks in 2017. Demand China’s car sales regained momentum […]

Why the Service Sector’s Contribution to Brazil Is Important
The service sector is the main contributor to Brazil’s GDP and job creation, but it’s currently suffering from structural weakness and poor international performance.

3 Key Takeaways from U.S. Steel’s 4Q16 Earnings Call
U.S. Steel produces steel in blast furnaces and uses coking coal, steel scrap, and iron ore as a raw material.

Falling Steel Prices Overshadow U.S. Steel’s Bullish Drivers
The rally in steel prices, which was driven mainly by trade cases, is fading. Spot HRC prices have fallen more than $160 per ton from their June peak.

Understanding the Long-Term Impact of a Trump Presidency on Steel
In our view, the kind of trade protectionism Trump has expressed support of would only provide a short-term breather for the industry.

Why the Fed’s Rate Hike Could Impact Aluminum Prices
The unwinding of aluminum financing deals could have a negative impact on aluminum prices. Earnings of aluminum producers such as Alcoa (AA) are sensitive to aluminum prices.

Do Technical Indicators Point to a Pullback in Cliffs’ Share Price?
Traders and investors also look at technical aspects when making market entry or exit decisions.

What are the Rate Expectations for Dry Bulk in 2016?
Though increased scrapping and minimal ordering activity could provide some relief on the supply side, the outlook for 2016 isn’t looking good for dry bulk.

This Is Boosting Steel Prices in China
In December 2016, steel prices in China hit 3,557 Chinese yuan per ton—the highest level in two and a half years.

What Challenges Could Alcoa’s Post-Split Upstream Business Face?
After the split, the new Alcoa (AA) will house the business units that are currently under the Primary Metals and Alumina segments. We’ll look at the challenges that Alcoa could face once it is listed as a separate company.

China’s Steel Prices Regain Their Strength, Pushing Iron Ore Prices Higher
One of the most dominant factors driving the recent iron ore price rally is rising steel production and the rise in steel prices in China.

Is the Timing Correct for Alcoa’s Split?
Previously in this series, we’ve seen the key concerns of Alcoa’s (AA) split into two companies. The question around the split is not “why split?” but rather “why now?”

Why Treasury Inflation-Protected Securities May Offer Some Value
TIPS may offer some value as inflation breakeven seems modest. TIPS provide investors a hedge against inflation just like gold (GLD) and other commodities (DBC).

Should Doctor Copper Be Thanking Xi-Trump Bonhomie?
While commodities generally follow the underlying supply-demand dynamics in the long term, according to some observers, copper prices also tend to reflect macro developments.

Why are crop prices so important to potash and phosphate stocks?
Crop price is one of the key drivers of fertilizer demand and prices. Globally, potash and phosphate are used for several types of crops.

Could Cost-Push Inflation Dent Copper Miners’ Outlooks?
In this article, we’ll look at copper miners’ unit production costs.

RAAX ETF: Capturing Real Benefits of Real Assets
RAAX’s allocation process provides exposure to segments with better returns profiles while managing overall portfolio risk.

Current Economic Tailwinds Are Powering Real Assets
The shifting of the global policy stance from monetary stimulus to fiscal stimulus could benefit real assets.

Shifting Economic Winds Could Be Good for Real Assets
Solid economic growth, supply bottlenecks, and rising commodity prices have pushed up inflation in the United States.

Real Asset Companies Are on the Cusp of an Earnings Revival
Despite rising concerns about a trade war, the IMF maintained its growth forecasts for the global economy for 2018.

Why Emerging Market Stocks and Bonds Appear Attractive
But let’s think about maybe more actionable items in terms of growth, because it’s clear that at least there are now some signs on growth inflection, maybe not globally, but at least in some parts of the world.

10-Year Treasury Yield: Is the US Economy Overheating?
Rising inflation, higher backlog orders since 2004, and rising transportation costs are signaling that the US economy is overheating.

RAAX ETF Aims to Generate Long-term Total Returns
Now that we understand why the macro environment is supportive, why don’t you tell us a little bit about the investment process?

How Escalating Trade Tensions Have Impacted Commodities
Falling commodity prices have led to a selling spree in copper miners like Freeport-McMoRan (FCX), BHP Billiton (BHP), and Rio Tinto (RIO).

Is Now the Right Time to Invest in Commodities?
There are expected, and possibly more aggressive, interest rate hikes over the next several years, and potential commodity supply constraints resulting from years of capital expenditure reductions in the metals and oil industries.

Why Commodities Outperform during Rate Hike Cycles
Commodities and interest rates both tend to rise late in the economic/business cycle. As a normal cycle develops, the economy expands and gains momentum.

What’s Driving the Rally in Commodities?
The US Federal Reserve recently raised the benchmark lending rate by 25 basis points—the sixth hike since December 2015.

How Analysts View Copper Miners amid the Market Carnage
The repercussions of the equity market carnage are evident in commodity markets. Copper, which some analysts see as an indicator of the global economy’s health, has come off its 2018 highs.

Why Volatility Fell 16% in Week 1 of 2018
Every segment of the global financial markets began 2018 on a positive note. The global equity rally extended in the first week of the year.

How the Secondary Market Could Impact Copper Prices in 2018
Copper, like other metals, is widely recycled. Last year, we saw improved scrap flows as copper prices moved to higher price levels.

Aluminum Supply: What Investors Should Watch in 2018
After its split, Alcoa (AA) became a pure-play aluminum producer (S32) (CENX). Like other aluminum producers, Alcoa’s fortunes are tied to metal prices.

Copper Bulls Took a Back Seat in November
Copper bulls had a nice run since July. Copper underperformed several industrial metals in 1H17. However, copper has been on an uptrend in 2H17.

Copper Tests $7,000 as Industrial Metals Rebound
Last week was broadly positive for industrial metals (DBC). Copper rose 3.6%, while aluminum prices rose 1.3% in the week ending November 24.

Metal Prices Fell on Demand Concerns Last Week
In this series, we’ll look at the key developments that impacted mining companies last week. We’ll also look at some of the company-specific developments that impacted mining stocks.

Can Cleveland-Cliffs’ Realized Prices in the US Recover in 2018?
For 3Q17, Cleveland-Cliffs reported average realized prices came in at $90.50 per ton.

Russia’s Manufacturing PMI Improved Marginally in September
The final Russia Manufacturing PMI (Purchasing Managers’ Index) rose marginally in September 2017. It was 51.9 in September compared to 51.6 in August.

How Emerging Economies Are Supporting Global Growth
According to the report provided by the World Bank in June 2017, global (ACWI) growth is expected to strengthen to 2.7% in 2017.

Aluminum’s Outlook: What Investors Can Expect
Aluminum prices have been strong in 2017 and have built on last year’s gains. The entire industrial metals space has come a long way since 1Q16.

What Could Drive BHP Billiton’s Copper Costs in Fiscal 2018?
BHP Billiton’s (BHP) copper production fell 16.0% in fiscal 2017 to 1.3 million tons.

Aluminum Prices Defy Gravity and Maintain the $2,000 Level
Aluminum prices have gained more than 22% so far in 2017. This trend was preceded by a 13.6% rise in 2016.

Freeport and Copper: Is a Correction in the Cards?
Copper prices have shown strength over the last few trading sessions, which has helped the upwards price action of miners including Freeport-McMoRan (FCX), Glencore (GLNCY), and Southern Copper (SCCO).

Is China Cutting Aluminum Capacity? Analyzing Producers’ Views
As we noted previously, aluminum prices have been strong this year. Strength has been driven by positive supply and demand dynamics.

What’s Vale’s Base Metals Outlook?
As we saw in the previous two parts of this series, Vale’s (VALE) iron ore and coal production increased sequentially in 2Q17.

Will China’s Disappointing July Trade Deflate Metal Bulls?
On August 8, China released its trade data for July. The country’s exports in dollar terms rose 7.2% compared to July 2016 while imports rose 11%.

It’s Raining Cash for Miners amid Resurgent Commodity Prices
Freeport-McMoRan (FCX) generated free cash flows of $675.0 million in 2Q17, which took its 1H17 free cash flows to $1.1 billion.

Why Cliffs’ Downgraded Its Earnings Guidance Yet Again
As we discussed in the previous part of this series, realized prices along with volumes drive a company’s revenues.

Political Instability and Commodity Prices Weigh on Brazilian Real in 2017
Brazil’s economy has found itself immersed in political scandals and corruption that have been affecting growth for the past few years.

What Happened to Brazil’s Trade Surplus in June
Brazil’s (EWZ) trade balance since the beginning of 2017 indicates continuous expansion, with exports rising more than imports.

What to Expect from Declining Inflationary Trend in Colombia
The annual consumer inflation in Colombia is on a declining trend over the last year as of June. Consumer prices rose at a slower pace of ~4.0%.

What Improved Global Demand Means for Exports in Malaysia
The Malaysian economy reported improved growth in 1Q17, largely supported by the rise in exports.

Can Improved Demand Help Malaysia’s Economy Expand in 2Q17?
The Malaysian economy gave us an impressive growth story in 1Q17, with its increased investments in infrastructure and private sector expansion.

Why Colombian Exports Could Improve in 2017
After a disappointing 1Q17 GDP figure in Colombia, economic activity was expected to gradually gain strength in 2017.

Will Monetary Easing Support Colombia’s Economic Growth in 2017?
Colombia, an important Latin American (ILF) economy, is currently facing sluggish growth due to a decline in commodity prices (DBC) and political instability.

How Colombia’s Inflation Is Trending
Annual consumer inflation in Colombia (GXG) has dropped for 12 consecutive months as of June 2017.

Indonesian Exports Provide Support as Consumption Falls
The Indonesian (EIDO) economy rose 5.0% on a year-over-year basis in 1Q17. Indonesia’s performance in 1Q17 was mainly due to higher exports.

Improved Global Demand Boosted Brazil’s Trade Surplus in May 2017
Brazil’s exports stood at $19.7 billion in May 2017, a 12.6% increase year-over-year, boosted by sales of semi-manufactured products and basic products.

Slumping Commodity Prices Pressure the Brazilian Real in 2Q17
The Brazilian real dropped ~2% in May 2017 amid the country’s ongoing political instability.

Will Qatar’s Economic Growth Continue to Fall amid the Crisis?
Qatar was expected to grow at a faster pace in 2017. However, economic sanctions by its neighbors are expected to impact its economic activity in 2017.

Idled Chinese Iron Ore Capacity to Come Back Online
Recently, some market participants have been concerned that the 30-month high iron ore prices in February 2017 were enough for some of the idled capacity in China to come back online.

Trend in Copper Prices: What It Indicates for Freeport
Copper closed at $5,741 per metric ton on March 23. Copper has risen 4.0% in 2017. In 2016, copper prices rose 17.4% and ended a five-year price drought.

Analysts’ Expectations for Iron Ore Prices in 2017
According to the median compiled by Bloomberg on February 13, 2017, iron ore prices could drop in every quarter in 2017 to an average of $55 per ton in 4Q17.

Are Rising Chinese Steel Inventories a Risk for Steel Investors?
With higher steel production and subdued demand, one would expect a tsunami of Chinese steel exports, but this wasn’t the case last month. So what did China want with so much steel?

What the Trend in Scrap Prices Indicates for Nucor
Steelmaking is raw material intensive in nature, and raw material pricing tends to impact steel prices. In this article, we’ll discuss how steel scrap prices are playing out in the United States.

Factors That Are Supporting Copper Prices This Year
Copper closed at $2.73 per pound on February 22, 2017. So far, copper has risen 9.6% in 2017.

A Look at Technical Indicators for Cliffs and Peers
Technical indicators In this article, we’ll discuss the technical indicators for Cliffs Natural Resources (CLF) and its peers. Traders and investors look at technical indicators when making market entry or exit decisions. Moving averages and the RSI (relative strength index) score are among the most widely used technical parameters. Generally, an RSI score below 30 […]

How Did BHP Benefit from Iron Ore’s Price Rally in 2016?
Iron ore’s stellar run in 2016 In the previous part of this series, we discussed how BHP Billiton (BHP) produced record iron ore volumes in the half-year ended December 2016. This production has come at an opportune time for the company. During 4Q16, iron ore prices surged ahead. While the momentum built during the whole […]

Can Iron Ore Prices Continue Defying Analysts’ Forecasts in 2017?
Iron ore prices remained stubbornly high in 2016 despite most analysts’ expecting the contrary. In this article, we’ll see how analysts view iron ore’s prospects in 2017.

Can Iron Ore Prices Continue Their Stellar Run in 2017?
The price of iron ore rose 81% in 2016. Toward the end of the year, Donald Trump’s US presidential win led to a rally in commodity prices.

What Could Impact Chinese Steel Prices in 2017?
Since China is the world’s largest steel producer and exporter, it’s important for investors to keep track of Chinese steel prices.

Can Chinese Steel Companies Drive Iron Ore Demand in 2017?
Some analysts have upgraded their iron ore price forecasts due to the recent strength in prices.

Copper 2017 Outlook: What Factors Should Investors Watch?
Copper has been on a downtrend after hitting $10,000 per metric ton at the beginning of 2011. LME copper prices have fallen in every year since 2011.

How 2017 Looks Different from 2016 for Alcoa
Alcoa made a 52-week low on January 20, 2016, and joined the ranks of other mining companies to hit fresh 52-week lows such as BHP Billiton, Rio Tinto, and Vale.

Do Analysts See Freeport-McMoRan as a ‘Buy’ after the Election?
According to consensus estimates compiled by Thomson Reuters, Freeport-McMoRan (FCX) has a mean one-year price target of $13.14.

Will Higher Prices Reflect in Steel Companies’ Earnings?
Steel companies’ earnings are sensitive to changes in steel prices (DBC). We saw a significant recovery in US steel prices over the last few weeks.

Has the Commodity Cycle Turned Around?
Trump’s proposed infrastructure investments have boosted commodity prices. Markets seem to have repriced copper for the expected increase in demand.

Where Are Technical Indicators for Iron Ore Miners Pointing?
Earlier in this series, we analyzed iron ore miners’ ratings and estimates. In this article, we’ll discuss these miners’ technical indicators.

What’s Vale Doing to Strengthen Its Balance Sheet?
For commodities (DBC), including iron ore, 2015 was nothing short of a nightmare. Rio Tinto, BHP Billiton, Vale, and Cliffs Natural Resources fell to multiyear lows.

Freeport Investors Are Confused: Why Did Copper Rally?
Copper producers’ earnings including Freeport-McMoRan (FCX), Teck Resources (TCK), and Rio Tinto (RIO) (TRQ) are sensitive to copper prices.

What’s Driving Steel Prices in China?
China’s steel prices Among the most dominant factors driving the recent iron ore price rally are higher steel production and the rise in steel prices in China (FXI). Although these factors have helped iron ore prices YTD (year-to-date), the question remains as to whether steel prices can remain buoyant for the remainder of 2016. The answer […]