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More Shocks Seen Roiling Commodities After Worst Drop Since 2008

  • Any price gains in 4Q seen constrained by U.S. rate increase
  • Morgan Stanley cuts forecasts for metals, bulk raw materials
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The Commodities Market Gloom Is Normal, Not New

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Commodities posted their worst quarter since the 2008 global financial crisis, and Morgan Stanley warns that more losses may be ahead.

Returns from 22 raw materials tracked by Bloomberg shrunk about 14 percent, the most since the last quarter of 2008, amid forecasts for the slowest economic growth since 1990 in China, the biggest user of energy, metals and grains. Oil led the collapse as OPEC producers pump near record levels while everything from copper to wheat were also down more than 10 percent on speculation that supplies are outpacing demand.