Never-Ending Trade War Sinks Commodities Into a World of Trouble - Bloomberg:
The U.S.-China trade war is sparking so much fear over demand that even those parts of the commodity world that aren’t in the direct firing line are getting burned.
Oil had its biggest sell-off in four years Thursday after U.S. President Donald Trump brought an abrupt end to a truce forged with Chinese counterpart Xi Jinping in June. That’s even though Beijing has spared crude from levies. Meanwhile, crop markets, industrial metals and shares of agricultural traders -- already roiled by the year-long tit-for-tat tariff spat -- got another whipping.
That shows how the dispute between the two major economies is overwhelming concerns over supply: tensions in the Middle East’s most important oil chokepoint are still simmering, the wettest 12 months of record disrupted planting in the U.S. crop belt and a deadly pig virus is decimating hogs in China. For investors, the threat posed by the trade war to global economic health -- and in turn, consumption of commodities -- is trumping everything else.
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