We forecast the US dollar NAB’s Non-Rural Commodity Price Index to increase by 2.1% yoy in Q3 2019, however underlying trends remain highly mixed. Higher export prices for LNG and iron ore (despite more recent spot price falls) are the key contributors, while both thermal and metallurgical coal are weaker, as are most base metals. Global economic trends have continued to deteriorate – with trade tensions between China (the largest consumer of most commodities) and the United States increasing once again. These trends are a negative for commodities demand – placing downward pressure on prices. In annual average ... (full story)