The commodity sector is increasingly being spooked by the recession ghost. This past week’s selling saw steep declines across all three sectors of energy, metals and agriculture. At this point, the level of potential demand destruction remains unclear. However, there is no doubt that some of the recent froth is currently being taken out of the market. This is partly driven by macro-orientated funds who bought the rally but now are having second thoughts as the risk of an economic slowdown looms ever larger. The current worries, however, will only manifest itself over the coming months and quarters. At this point, we ... (full story)