off to 32c and beyond soon ?, page-140

"Industrial Metals

Signs of a rebound in global growth and gains in developing economies will support demand for raw materials, analysts at Societe Generale SA led by Michael Haigh, the head of commodities research in New York, said in a report Nov. 26. Investors have become “excessively pessimistic” on industrial metals because prices are below output costs for some producers, the bank said.

The world economy may expand 2.8 percent next year, the most since 2011, according to the economist estimates compiled by Bloomberg.

U.S. building permits rose in October to the highest since June 2008, Commerce Department figures released Nov. 26 showed. Four of five investors expect the Federal Reserve to delay a decision to taper stimulus until March or later, according to the latest Bloomberg Global Poll. The U.S. is the world’s biggest consumer of crude oil, and American builders put about 430 pounds (195 kilograms) of copper into the average home.

“There’s less fear about the global economy moving into 2014, and what that does is makes you more positive on commodity demand,” said Catherine Raw, the London-based manager of the BlackRock Commodity Strategies Fund. “The market outlook is one in which commodity prices are more stable and less likely to go down given that better demand environment.”

But read the full article re negative sentiment commodities:

http://www.bloomberg.com/news/2013-12-01/worst-raw-material-slump-since-08-seen-deepening-commodities.html?cmpid=