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.

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