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Commodities rally on US weather, Ukraine crisis

But Citi and Goldman say rally won't last as supply surpluses start to emerge

A YEAR after Citigroup Inc declared the decade-long run of commodity gains over, wacky weather, dead piglets and Vladimir Putin have gotten in the way. While Citigroup rang "death bells" in April 2013 for the synchronised super cycle fuelled by economic growth in China, extreme weather and supply squeezes led to surprise rallies in 2014's first three months.

Coffee hit a two-year high, cattle and hogs rose to records and nickel had its best quarter since 2010. Gold rebounded from the worst rout in 32 years after Mr Putin's incursion into Ukraine's Crimea region set off the biggest standoff between Russia and the United States since the Cold War. Commodities are "still a powerful hedge", said Rob...

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