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Lumber was the new gold. Not anymore it seems. Lumber futures are now trading in the 1100-1200 range, dropping from above the $1,700 range. Was it all speculative inflation?

Coal prices are rising to prices not seen in years-- but the spur might not be enough to further investment in new mines as investors and regulators start walking away from the world's dirtiest fossil fuel. Strong industrial activity in major economies is aiding coal consumption while supply is constrained by problems of weather in Indonesia and China's mine safety push, and Colombia's strikes. Demand in Europe has increased 10%-15% but despite this, even China are seeing shrinking capital spending budgets. ''Even as the world moves away from coal, demand will remain strong through the 2030s and, without new supply, prices are likely to stay high, he said. When the market is squeezed, like now, price spikes won’t incentivize new supply, but will set off mini-waves of coal power plant closures that will kill off consumption until the market rebalances''

Exxon Mobil recently to get out of a big oil field in Iraq, but even though the Iraqi government tried to find a new buyer, nobody seems interested. Should they sell to China or buy back the parcel themselves? In any case, this is but only one example of what is becoming of the big oil market, which seems to increasingly get smaller.

Copper is widely recognized as a proxy for macroeconomic health. Exorbitant commodity prices led producers to cut capital spending on major resources by nearly half over the last decade, shrinking stocks of industrial metals to 20 year lows and reducing the supplies across commodities. The crunch is now converging into a buying spree in key markets which is supercharging prices. The materials stretch could convert into higher prices for consumers or more broadly, force firms to shut down production as a raw-material shortages morphs into a market dysfunction.

FUNDSTRAT: “WTI Oil has cleared the $67.98 resistance decisively and now above $70, with $80 now feasible ..

.. $XOM is the largest Energy stock, 25% of sector market cap, thus it is key. $XOM is the best performing large-cap stock (among top 30 stocks) in S&P 500 YTD, +50%.”