A worker passes red hot furnace in the steel making shop. (Photographer: Andrey Rudakov/Bloomberg) 

Is The Commodity Rally Over? Not Really, Says David Lennox

A combination of strong dollar and concerns about Chinese growth has led to a bit of weakness in commodity prices, according to David Lennox, resource analyst at Fat Prophets.

China’s export growth slowed as global demand for the country’s products moderated, while imports remained robust as the investment at home aided demand, according to data released on Friday.

Copper futures for December delivery on Comex in New York fell 2.5 percent last week, ending an eight-week run of weekly gains for the most-active contract, the longest since May 2006.

“It seems more of technical pullback rather than a fundamental one.” Lennox expects demand for base metals to remain at “relatively higher” levels. “Copper will continue to perform on the upside for the remainder of the year,” he said.