CHART OF THE DAY: Australian coal has been staging a huge rally

The storm clouds over the thermal coal price have lifted recently as the price of crude has continued to rally.

From a low of $56.20 less than a month ago, Newcastle Coal Futures for March Delivery on the Intercontinental Exchange rallied another $1.75 overnight to $66.70 a tonne.

That’s a rally of 18.6% so far.

Newcastle Coal Futures – ICE March 2015 (barchart.com)

For traders the big news is that both the short term and one-year downtrends have been broken. Further out the curve June was $1.20 higher but sits at just $60.15 a tonne.

What’s it telling us?

Spot traders are more bullish than the curve – clearly the energy rallies in crude and here in coal still haven’t convinced everyone.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.