Iron ore price, page-2825

...... an extract from this mornings Fat Prophets Members report

A point to note also is that commodity prices have generally strengthened post the financial year end, which will be underpinning financial performance in the current half. We have copper at three year highs, while iron ore prices have pushed up above the US$75 per tonne mark. I think we will see further strength as inflation ultimately comes through the system, but even if the status quo is maintained in terms of commodity pricing, there should be a further upward re-rating in share prices – particularly as most institutional analysts are positioned for a pullback – some are still talking US$50 on the iron ore price next year – good luck with that call!

The ASX200 has been frustrating in that it has been stuck in a tight range for so long, but something’s gotta give in my view. While a global pullback remains a possibility, most are positioned the same way around for the correction we all know is coming. I therefore think that the pullback when it does arrive will be relatively mild, and a broader market sell off could be a 2018 story.

Something’s got to give with the tight trading band on the ASX200. I think that a likely scramble by institutions to catch up with the reality in commodity pricing in the resource sector, will provide a boost to the ASX in the final quarter of this year.