Commodities: The Past, The Present and The Future Presentation to Bloomberg LP / 16 December 2009, Hong Kong Mr Dan Doctor...
Introduction
Introduction
Introduction Commodity bull markets ranked by % gain in CRB (CCI) Index Low High % Rally Rally duration Mean CPI (yoy) 200...
DOW JONES INDUSTRIAL AVERAGE Introduction mmmm
<ul><ul><li>A look at some of the major global events </li></ul></ul><ul><ul><li>that have shaped global commodity markets...
Chronology <ul><ul><li>Soviet Grain Purchases – Summer 1972 </li></ul></ul><ul><ul><li>The Soviet Union during the summer ...
Chronology <ul><ul><li>China begins economics liberalization – 1978 </li></ul></ul><ul><ul><li>The people’s Republic of Ch...
Chronology <ul><ul><li>US Recession – 1980 </li></ul></ul><ul><ul><li>US recession (January 1980 to July 1980) is caused b...
Chronology <ul><ul><li>Iraq invades Kuwait – August 2, 1990  – Iraqi dictator Saddam Hussein invades Kuwait to take contro...
Chronology <ul><ul><li>Asian Financial Crisis – July 1997 </li></ul></ul><ul><ul><li>Run starts on Eat Asian Tiger currenc...
Chronology <ul><ul><li>US stock market hits record high but bubble subsequently bursts – March 2000 </li></ul></ul><ul><ul...
Chronology <ul><ul><li>US launches war against Iraq’s Saddam Hussein – March 20, 2003 </li></ul></ul><ul><ul><li>US and UK...
Chronology <ul><ul><li>US officially enters recession in December 2007 </li></ul></ul><ul><ul><li>In a decision announced ...
Commodities: Past, the Present & the Future <ul><li>Since the extremely elevated peaks in real commodity prices of the 197...
Commodities: Past, the Present & the Future <ul><li>But there  are  common elements that have underpinned commodity prices...
AGRI  COMMODITIES
CORN – Chicago nearby futures Agri Commodities
SOYBEANS – Chicago nearby futures Agri Commodities
Agri Commodities <ul><li>Basic food prices rocketed during the 2007-08 spike in commodity prices with disastrous consequen...
Agri Commodities <ul><li>Agri commodities are also subject to crop-specific factors that can significantly impact underlyi...
Agri Commodities Agri Commodities <ul><ul><li>Corn – despite a bumper 2009 US crop, Chicago corn prices have been well sup...
CRUDE &  NATURAL GAS
CRUDE OIL – WTI nearby futures Energies
Crude & Natural Gas <ul><li>A weak supply response to a period of strong demand growth was the fundamental basis for the s...
Crude & Natural Gas <ul><li>The global financial crisis, subsequent global economic slump and the flight-to-quality spike ...
Crude & Natural Gas <ul><li>Outlook for crude oil and natural gas prices </li></ul><ul><li>Crude oil  – the outlook for cr...
METALS METALS
GOLD – COMEX nearby futures Metals
SILVER – COMEX nearby futures Metals
COPPER - LME nearby futures Metals
NICKEL – LME nearby futures Metals
Metals <ul><li>A glance at an historical chart indicates two major spikes in the price of gold; the late 1970’s/early 1980...
Metals <ul><li>The Reserve Bank of India’s purchase of 200 tonnes of IMF bullion, made at the prevailing market price betw...
Crude & Natural Gas <ul><li>Outlook for selected metals markets </li></ul><ul><li>Gold  – we expect the gold price to rema...
Crude & Natural Gas <ul><li>Outlook for selected metals markets </li></ul><ul><li>Copper  – upward momentum in copper pric...
DISCLAIMER CWA Global Markets Pty Ltd  Level 4, 8 Spring Street Sydney NSW 2000, Australia ABN 65 097 925 472 AFSL  279118...
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Bloomberg Forum Presentation Latest (2)

  1. 1. Commodities: The Past, The Present and The Future Presentation to Bloomberg LP / 16 December 2009, Hong Kong Mr Dan Doctoroff / President Presented by CWA Global Markets Peter McGuire Founder / Managing Director
  2. 2. Introduction
  3. 3. Introduction
  4. 4. Introduction Commodity bull markets ranked by % gain in CRB (CCI) Index Low High % Rally Rally duration Mean CPI (yoy) 2001-08 October 2001 182.83 July 2008 615.04 236.4% 81 months 2.8% 1971-74 October 1971 96.40 February 1974 237.80 146.7% 28 months 4.9% 1977-80 August 1977 184.70 November 1980 337.60 82.8% 39 months 10.2% 1986-88 July 1986 196.16 June 1988 272.19 38.8% 23 months 3.2% 1992-96 August 1992 198.17 April 1996 263.79 33.1% 44 months 2.8% Source: Commodity Research Bureau
  5. 5. DOW JONES INDUSTRIAL AVERAGE Introduction mmmm
  6. 6. <ul><ul><li>A look at some of the major global events </li></ul></ul><ul><ul><li>that have shaped global commodity markets post-WWII: </li></ul></ul><ul><ul><li>Bretton Woods Conference – July 22, 1944 </li></ul></ul><ul><ul><li>US and UK looking ahead to the end of World War II, meet in Bretton Woods, New Hampshire and create a post-war, monetary system based on fixed exchange rates and the fixed convertibility of the dollar into gold. The Bretton Woods conference also sets the stage for the creation of the World Bank, the International Monetary Fund (IMF), and the General Agreement on Tariffs and Trade (GATT). The Bretton Woods currency system is highly successful for over two decades but finally breaks down in 1971 under stress from the US inflation and trade deficit and the need for more global flexibility. </li></ul></ul><ul><ul><li>Nixon Closes the gold window, ending Bretton Woods – August 15, 1971 </li></ul></ul><ul><ul><li>President Nixon announces that the US government will no longer exchange gold for dollars. That effectively ends the Bretton Woods monetary system that had been in place since 1945. Major currencies are freely floating by 1973. Along with the gold announcement, Nixon also announces 90-day wage and price controls and a 10% import surcharge in an attempt to curb inflation and the US trade deficit. </li></ul></ul>Chronology
  7. 7. Chronology <ul><ul><li>Soviet Grain Purchases – Summer 1972 </li></ul></ul><ul><ul><li>The Soviet Union during the summer of 1972 purchased a huge amount of corn, wheat, soybean meal from the US in response to poor domestic crops, thus causing grain and soybean prices to soar in late 1972 and early 1973. </li></ul></ul><ul><ul><li>Arab Oil Embargo – October 17, 1973 </li></ul></ul><ul><ul><li>Arab members of OPEC halt exports of oil to the US in retaliation for supporting Israel during the Yon Kipper War. Oil prices triple from $3.50 to $10–11 per barrel range by 1974–75. The embargo lasts only 5 months (until March 1974) but the long-term impact is severe. </li></ul></ul><ul><ul><li>US Recession and Bear Market – 1973 – 75 </li></ul></ul><ul><ul><li>Serious US stock bear market emerge in response to the Arab Oil Embargo and the major US economic recession from Nov- 1973 to March- 1075. </li></ul></ul><ul><ul><li>US citizens can legally own gold – 1975 </li></ul></ul><ul><ul><li>US allows its citizens to own gold bullion. Owning gold was illegal from 1933-1974 except for jewellery and coin collecting. </li></ul></ul>
  8. 8. Chronology <ul><ul><li>China begins economics liberalization – 1978 </li></ul></ul><ul><ul><li>The people’s Republic of China starts reforming its economy from a centrally-planned economy to a market-orientated economy, but retains communist political structure. Rapid Chinese economic growth begins (average annual Chinese GDP growth is +9.7% from 1978-2005). </li></ul></ul><ul><ul><li>1979 Oil Crisis </li></ul></ul><ul><ul><li>Crude oil prices more than double from $15 to $40 per barrel on oil supply disruptions caused initially by the Iranian oil production. Americans experience long lines at the gas pumps as shortages are worsened by President Carter’s gasoline price controls. </li></ul></ul><ul><ul><li>Gold and silver hit record highs – January 1980 </li></ul></ul><ul><ul><li>Gold reaches a record high of $850.00 (London PM gold fix on Jan21, 1980) and silver in New York reaches a record high of $48.00 (NY daily close) due to inflationary 1970s, but precious metals prices then plunge as Volcker cracks down on inflation. </li></ul></ul>
  9. 9. Chronology <ul><ul><li>US Recession – 1980 </li></ul></ul><ul><ul><li>US recession (January 1980 to July 1980) is caused by Fed’s crack-down on money supply and inflation surge in oil prices tied to the Iranian revolution. First dip of the “double-dip” recession. </li></ul></ul><ul><ul><li>US stocks begin bull market – 1982 </li></ul></ul><ul><ul><li>After plunging on an inflation-adjusted basis from 1973-1982, the US stock market finally enters a long-term bull market that lasts until 2000, with corrections in 1987 and 1990. </li></ul></ul><ul><ul><li>Berlin Wall Falls – November 9, 1989 </li></ul></ul><ul><ul><li>Berlin Wall, which was originally built in 1961 by the Soviets to separate East and West Germany falls. Unification of East and West Germany follows in 1990, creating economic dislocation for Germany. </li></ul></ul><ul><ul><li>Nikkei index peaks and Japan’s bubble later bursts – December 1989 </li></ul></ul><ul><ul><li>Japan’s stock market peaks and the stock and property bubble starts to burst. Japan suffers more than a decade of delation and sub-par economic growth. The Nikkei index plunges by three-quarters and Tokyo land prices fall by one-half. </li></ul></ul>
  10. 10. Chronology <ul><ul><li>Iraq invades Kuwait – August 2, 1990 – Iraqi dictator Saddam Hussein invades Kuwait to take control of oil fields, with likely intention to move on to Saudi Arabia. </li></ul></ul><ul><ul><li>“ Desert Storm” Gulf War – January 17, 1991 </li></ul></ul><ul><ul><li>US and coalition forces go to war against Iraq to force Iraq out of Kuwait. US stops short of Baghdad and leave Saddam Hussein in power. </li></ul></ul><ul><ul><li>1990-91 US Recession </li></ul></ul><ul><ul><li>US economy is in recession from July 1990 to March 1991 due mainly to the oil price spike around caused by Iraq’s invasion of Kuwait and the subsequent US-Coalition war against Iraq. </li></ul></ul><ul><ul><li>Soviet Union Dissolves – December 26, 1991 </li></ul></ul><ul><ul><li>The Supreme Soviet, the highest government body of the Soviet Union, dissolves itself and Russia and other republics later become independent. </li></ul></ul>
  11. 11. Chronology <ul><ul><li>Asian Financial Crisis – July 1997 </li></ul></ul><ul><ul><li>Run starts on Eat Asian Tiger currencies causing a collapse in the East Asian stock market and an economic recession. Countries most affect were Thailand, South Korea and the Philippines. </li></ul></ul><ul><ul><li>Russian debt default – August 17, 1998 </li></ul></ul><ul><ul><li>Russia defaults on its foreign sovereign debt and devalues the ruble due to high debt from Soviet era, limited success with market reforms, high inflation and low currency reserves due in part to spending $6 billion to defend the ruble during the Asian currency crisis in 1997. The ruble is floated in the wake of the crisis. </li></ul></ul><ul><ul><li>LTCM hedge fund bailout – September 1988 </li></ul></ul><ul><ul><li>Federal Reserve orchestrates a bailout of Long-Term Capital Management hedge fund in order to precent systemic financial system crisis. </li></ul></ul>
  12. 12. Chronology <ul><ul><li>US stock market hits record high but bubble subsequently bursts – March 2000 </li></ul></ul><ul><ul><li>The S&P 500, the Nasdaq Composite and other key stock market indices hit record highs in March 2000 but subsequently enter a bear market. </li></ul></ul><ul><ul><li>2001 US Recession – US economy enters recession from March 2001 to November 200 due to bursting of equity bubble and post-Y2K technology spending burst. </li></ul></ul><ul><ul><li>9/11 terrorist attacks on US – September 11, 2001 </li></ul></ul><ul><ul><li>Al-Qaeda attacks US with aeroplanes crashing into World Trade Centre and the Pentagon. As a result, US enters two wars (Afghanistan and Iraq) and military spending, along with the US budget deficit, soar. </li></ul></ul><ul><ul><li>US invades Afghanistan – October 7, 2001 </li></ul></ul><ul><ul><li>US invades Afghanistan to oust Taliban government and deny sage haven to Al-Qaeda. </li></ul></ul>
  13. 13. Chronology <ul><ul><li>US launches war against Iraq’s Saddam Hussein – March 20, 2003 </li></ul></ul><ul><ul><li>US and UK begin “Operation Iraqi Freedom” against Iraq and topple Saddam Hussein who is captured by US forces on December 13, 2003, and hung after a trail in an Iraqi court. </li></ul></ul><ul><ul><li>Avian flu emerges – August 2004 </li></ul></ul><ul><ul><li>Sporadic outbreaks of avian flu are seen in August-October 2004 in Vietnam and Thailand. Avian flu progressively spreads into other parts of Asia and then to Africa and Europe by early 2005. </li></ul></ul><ul><ul><li>China revalue's Yuan and moves to crawling peg – July 21, 2005 </li></ul></ul><ul><ul><li>China announces a one-time revaluation in the Yuan by 2.1% and then allows the Yuan to crawl higher in a nod to international demands that China allow its currency to rise to help curb its soaring trade surplus. </li></ul></ul><ul><ul><li>Hurricane Katrina – August 29, 2005 </li></ul></ul><ul><ul><li>Hurricane Katrina makes landfall near New Orleans and causes widespread devastation including the flooding and shutdown of New Orleans. </li></ul></ul>
  14. 14. Chronology <ul><ul><li>US officially enters recession in December 2007 </li></ul></ul><ul><ul><li>In a decision announced a year later in December 2008, the National Bureau of Economic Research declares that a US recession began in December 2007. </li></ul></ul><ul><ul><li>$700 billion TARP bank bailout – October 2, 2008 </li></ul></ul><ul><ul><li>President Bush signs into law the $700 billion Troubled Asset Relief Program (TARP), which is subsequently used to inject capital into banks. </li></ul></ul><ul><ul><li>Fed announces $800 billion rescue package – October 22, 2009 </li></ul></ul><ul><ul><li>Barack Obama takes office as the 44th President of the United States , winning the election with his promise of change. </li></ul></ul><ul><ul><li>Obama stimulus plan – February 2009-12-10 </li></ul></ul><ul><ul><li>Congress approves and the President Obama signs a $787 billion fiscal stimulus bill to revive the US economy. </li></ul></ul><ul><ul><li>Source : CRB Encyclopedia of Commodity & Financial Prices Edition 2 </li></ul></ul>
  15. 15. Commodities: Past, the Present & the Future <ul><li>Since the extremely elevated peaks in real commodity prices of the 1970’s, commodity prices were in general decline (in real terms) until around the turn of this decade. </li></ul><ul><li>Since 2000, however, there has been a reversal of this trend. </li></ul><ul><li>The timing of the rise differs from commodity to commodity, in part a reflection of commodity-specific stories. </li></ul><ul><li>At this early stage of the economic recovery, commodity demand prospects now depend to a large degree on growth in emerging markets (EMs). </li></ul><ul><li>This reflects emerging markets’ steadily increasing rise in global market share, while commodity demand in EMs is more income elastic than in developed economies. </li></ul>
  16. 16. Commodities: Past, the Present & the Future <ul><li>But there are common elements that have underpinned commodity prices in general: </li></ul><ul><ul><li>The rapid industrialization and income growth in the People’s Republic of China and India (and other emerging markets) meant demand growth outstripped supply growth. </li></ul></ul><ul><ul><li>A sustained decline in the value of the US dollar contributed to the upward pressure on USD-denominated international market prices over the past decade. A weakening USD also fueled increasing flow of speculative funds into commodities, as investors long in US dollars sought to hedge against a loss of value. </li></ul></ul><ul><ul><li>The emergence of commodities as an asset class and the increasing growth of exchange-based and OTC commodity derivative markets (although this is a contentious argument). </li></ul></ul>
  17. 17.
  18. 18. AGRI COMMODITIES
  19. 19. CORN – Chicago nearby futures Agri Commodities
  20. 20. SOYBEANS – Chicago nearby futures Agri Commodities
  21. 21. Agri Commodities <ul><li>Basic food prices rocketed during the 2007-08 spike in commodity prices with disastrous consequences for poor consumers. </li></ul><ul><li>A number of separate dynamics were at play in driving up food prices, including: </li></ul><ul><ul><li>Rapid industrialization and income growth in the People’s Republic of China and India underpinned rapid growth in demand which outstripped supply growth. </li></ul></ul><ul><ul><li>A sustained decline in the value of the US dollar added to the pressure on USD-denominated international market prices. </li></ul></ul><ul><ul><li>The burgeoning biofuels industry has created another source of demand for various agri commodities such as corn, sugar and soybeans (“the food vs fuel” debate). Because of their inter-commodity linkages in both supply and demand, food prices now have a floor established by their potential conversion into Biofuel. </li></ul></ul>Agri Commodities
  22. 22. Agri Commodities <ul><li>Agri commodities are also subject to crop-specific factors that can significantly impact underlying S&D (extreme weather in growing regions, trade policies etc). </li></ul><ul><li>Although corn, wheat, soybeans and rice prices all hit record high nominal prices in 2008, it is important to note that in real terms these prices were substantially below the peaks achieved in 1973-74. </li></ul><ul><li>Outlook for selected agri commodities </li></ul><ul><li>Wheat – Global production forecasts for the 2009-10 crop continue to increase along with a burdensome stocks-to-use ratio. An improving demand picture linked to a global economic recovery will offer support to prices over the medium term. We forecast the CBOT wheat price will average US$5.50 over 2010. </li></ul>Agri Commodities
  23. 23. Agri Commodities Agri Commodities <ul><ul><li>Corn – despite a bumper 2009 US crop, Chicago corn prices have been well supported in recent months by the delayed harvest in combination with a weak US dollar. Improving global demand and the need for corn to price itself competitively relative to soybeans to ensure sufficient acreage will offer support to prices in 2010. We forecast the CBOT corn price will average US$4.10 over 2010. </li></ul></ul><ul><ul><li>Soybeans – the market has been dominated by supply tightness in 2010 after a very disappointing South American crop last season and robust Chinese demand. After two straight years of supply deficit, we expect the market to transition into a supply-led bearish phase in 2010 as global stocks-to-use ratio rises from its lowest level in a decade. We forecast the CBOT soybean price will average US$9.20 over 2010. </li></ul></ul>
  24. 24. CRUDE & NATURAL GAS
  25. 25. CRUDE OIL – WTI nearby futures Energies
  26. 26. Crude & Natural Gas <ul><li>A weak supply response to a period of strong demand growth was the fundamental basis for the sharp gains in oil prices in the years leading up to the 2008 peak. </li></ul><ul><li>The seeds of high prices were sown when the depressed oil prices of the 1980’s and 90’s led to underinvestment which limited the ability of producers to respond to the strong price signals of the early part of this decade. </li></ul><ul><li>Led by China, strong emerging market demand growth drove OPEC’s spare production capacity to very low levels. </li></ul><ul><li>The supply response by non-OPEC producers to declining OPEC spare capacity was only very weak. </li></ul><ul><li>Exacerbating the S&D squeeze, subsidization of fuel in various non-OECD countries insulated consumers from rising oil prices. </li></ul>Energies
  27. 27. Crude & Natural Gas <ul><li>The global financial crisis, subsequent global economic slump and the flight-to-quality spike in the US dollar saw crude prices plunge in 2H 2008, falling from a peak of around $145/bbl in July 2008 to a trough of $35/bbl in Q1 2009. </li></ul><ul><li>As a result of the deterioration in demand and in spite of a number of rounds of OPEC quota cuts, OECD stockpiles rose to their highest level on record in early 2009. </li></ul><ul><li>Since the lows of Q1 2009, crude prices have rebounded, spot prices averaging $78/bbl in November. </li></ul><ul><li>The rebound in crude oil prices has reflected improving expectations of a global economic recovery and a rebound in oil consumption which have offset concerns over elevated inventory levels. </li></ul><ul><li>Unlike crude, natural gas prices have remained depressed throughout 2009. </li></ul><ul><li>Natural gas prices have remained on the defensive owing to uncertainty about the extent of recovery in the industrial sector, a warmer than normal start to the US winter heating season and strong domestic production all of which is reflected in extremely high inventory levels. </li></ul>Energies
  28. 28. Crude & Natural Gas <ul><li>Outlook for crude oil and natural gas prices </li></ul><ul><li>Crude oil – the outlook for crude prices in 2010 is biased to the upside owing to the likelihood that a global economic recovery will underpin a recovery in fuel demand. While the demand outlook for the key US market is uncertain, we expect strong Asian demand growth to underpin a tighter supply-demand outlook. We forecast the WTI price will average US$100 a barrel over 2010. </li></ul><ul><li>Natural gas – US inventories remain near their highest level on record. We expect a persistent supply glut to limit the upside for natural gas prices in 2010. An uncertain outlook for recovery in demand from the industrial sector, a retrenchment of electric-power-sector demand for natural gas as well as rising US production will keep prices depressed. We forecast the natural gas price will average US$6.50 per million Btu over 2010. </li></ul>Energies
  29. 29. METALS METALS
  30. 30. GOLD – COMEX nearby futures Metals
  31. 31. SILVER – COMEX nearby futures Metals
  32. 32. COPPER - LME nearby futures Metals
  33. 33. NICKEL – LME nearby futures Metals
  34. 34. Metals <ul><li>A glance at an historical chart indicates two major spikes in the price of gold; the late 1970’s/early 1980’s and the current rally which began in 2001. </li></ul><ul><li>The recent record-breaking rally (in nominal terms at least) was supported by demand from institutional investors in response to the uncertain economic outlook and a depreciation of the US dollar against other currencies. </li></ul><ul><li>Low interest rates, expansionary fiscal policies and quantitative easing (in the US) have helped avoid Great Depression 2.0 but have sparked growing concern over potential dollar debasement and price inflation. </li></ul><ul><li>Adding to the downward pressure on the dollar has been the steady improvement in investor risk appetite. </li></ul><ul><li>As the financial crisis took hold, the dollar temporarily benefited from financial deleveraging and a spike in risk aversion. </li></ul><ul><li>But as financial markets have returned to more normal conditions, abating risk aversion added to the downward pressure on the dollar. </li></ul><ul><li>Helping to fuel the latest run-up in gold was a string of official sector purchases. </li></ul>Metals
  35. 35. Metals <ul><li>The Reserve Bank of India’s purchase of 200 tonnes of IMF bullion, made at the prevailing market price between October 19 to 30, was the largest official central bank purchase since the mid-1980s. </li></ul><ul><li>Were central banks - relentless sellers of gold since the 1990’s – changing their minds about the outlook for bullion? </li></ul><ul><li>The symbolism of China, India and Russia all adding to their gold reserves will inevitably be construed as implying that gold is not just an official asset of the past, but relevant today and possibly the future. </li></ul><ul><li>Silver’s status as part financial instrument and part industrial metal acted to both support and cap its price throughout the financial crisis and global recession. </li></ul><ul><li>The gold to silver ratio spiked in late 2008 as silver’s industrial demand prospects collapsed, but in 2009 the ratio has moved back to pre-crisis levels. </li></ul><ul><li>In recent months silver has not only benefited from a huge increase in investment demand but also optimism that industrial demand will soon recover. </li></ul><ul><li>The 2009 rebound in base metals’ prices has been supported by strong apparent Chinese demand as well as anticipation of a global economic recovery. </li></ul>Metals
  36. 36. Crude & Natural Gas <ul><li>Outlook for selected metals markets </li></ul><ul><li>Gold – we expect the gold price to remain high in 2010 as a function of increasing fabrication demand which will help to offset declining investment demand for gold amid a recovering global economy. We forecast the gold price will average US$1150 per ounce over 2010. </li></ul><ul><li>Silver – the ‘quasi’ precious metal, silver should outperform gold to the upside in 2010 as a function of its greater exposure to the industrial sector. An increase in industrial demand will more than offset a decline in investment demand for silver. We forecast the silver price will average US$19.50 per ounce over 2010. </li></ul>Energies
  37. 37. Crude & Natural Gas <ul><li>Outlook for selected metals markets </li></ul><ul><li>Copper – upward momentum in copper prices should moderate in 2010 however the market should remain supported by strong domestic growth in the Chinese economy, a recovery (albeit tepid) in OECD demand and limited spare production capacity. We forecast the copper price to average US$7500 per metric ton over 2010. </li></ul><ul><li>Nickel – the outlook for nickel prices is one of the weaker of the industrial metals. Excess production capacity will dampen the influence of rising global demand. We expect the nickel price to average US$17800 per metric ton over 2010. </li></ul>Energies
  38. 38. DISCLAIMER CWA Global Markets Pty Ltd Level 4, 8 Spring Street Sydney NSW 2000, Australia ABN 65 097 925 472 AFSL 279118 Trading involves risk of loss and may not be suitable for you. Past performance is no guarantee or reliable indication of future results and all rates of return and past results provided herein are for historical comparison purposes only. All advertising, advice and education content is of the nature of general information only and must not in any way be construed or relied upon as legal, financial or personal advice. No consideration has been given or will be given to the individual investment objectives, financial circumstances or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. CWA Global Markets Pty Ltd and its related entities will not accept any liability for loss or damage howsoever caused be it accidental, consequential, direct or indirect, as a result of the misuse of the information contained herein. Please ensure you obtain, read and properly consider the current Product Disclosure Statement and related offer documentation prior to acquiring the products referred to herein, so that you are fully informed regarding the key risks and costs associated with commodity warrants. These documents are available at www.cwa.net.au or on request.

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