Oil is sitting just above $40 and still on its downward trend. All base metal prices were heavily down last night. Copper for example is now at USD$1.38/lb and forecasts are for it to drop to $1 and I expect these forecasts will be revised down.
Stockpiles of all base metals are still increasing because mine production hasn't slowed much. There will have to be major mine closures for base metals to stabilise and prices will just keep falling until mines close.
Bulk commodities is anyones guess how much they will drop. Steelmakers keep cutting back production and stockpiles still keep growing. There could be massive reductions in coal & iron ore prices next year.
The earnings of BHP & especially RIO will be hit big time and current earnings will just be a dream in 6 months. An illogical rise in the DJIA on Friday just means the DJIA will fall harder next week and BHP will get taken along for the ride.
BHP Price at posting:
$26.15 Sentiment: None Disclosure: Not Held
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