Commodities: Medium Term Risks Remain

Commodity markets are trading up this morning, likely on the back the strong close in the Dow Jones late on Friday as well as the slightly weaker US dollar this morning. This backdrop, combined with oversold momentum indicators, is suggestive of a bounce in commodity markets short-term, particularly for the base metals and agricultural complex (as technical indicators remain more favourable). That said, the medium term outlook has deteriorated significantly in recent weeks, which could weigh on markets going forward. Greece's fiscal woes will continue to weigh on sentiment as long as they remain unresolved, as will the potential for

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