Commodity

Soybeans have long been an integral part of the global agricultural landscape, forming the foundation of countless products and a significant segment of global trade. As such, the health and yield of the soybean crop are of paramount importance to farmers, traders, and even everyday consumers. This year’s crop tour was met with heightened anticipation, especially given the early-season adversities and pronounced variability in crop growth. However, the recent findings and the unfolding climatic conditions suggest that the soybean crops might be headed for some severe challenges. Early Anticipation and…

As weather patterns continue to astonish the world, a term frequently thrown around in the meteorological arena is “El Niño.” With the recent announcement from the World Meteorological Organization (WMO) highlighting a 90% probability of El Niño continuing through the latter half of 2023, questions arise on its implications for commodities. Let’s dive into understanding the phenomenon and its consequential ripple effect on global commodities. Understanding El Niño The El Niño Southern Oscillation (ENSO) is a pivotal oceanic-atmospheric event rooted in the irregular variations of surface water temperatures in the…

Introduction The intricate dance of government regulation within the energy market often plays out behind the scenes, hidden from the average consumer’s view. But the impact of these decisions can reverberate far and wide, influencing global climate trends, economic growth, and geopolitical stability. Here’s an exploration of how governments, with the best of intentions, can sometimes miss the mark and the ripple effects that follow. 1. A Global Initiative: The IMO’s Challenge The International Maritime Organization (IMO), in a bid to combat the environmental hazards of sulphur emissions, drastically reduced…

Cocoa, an indispensable commodity and the vital ingredient behind our favorite chocolate products, has been experiencing an unprecedented whirlwind in the markets. The week began with a rally of $120 early Monday, reaching a 12 1/2 year high, only to be followed by a sharp $280 drop through mid-session Tuesday, leading to its four-week low early Friday. This article aims to provide a comprehensive outlook on cocoa’s supply landscape, which appears to be tightening in the wake of multiple influences, both macro and micro. Let’s explore the contributing factors in…

The global commodity market is an intricate, complex ecosystem that impacts every aspect of our lives – from the cars we drive to the homes we build. It is a challenging environment where a level of caution is often warranted. However, there are several reasons for an optimistic outlook, particularly within the energy sector. In June, we saw an encouraging expansion in the market breadth, with cyclical sectors adding to the rally initiated by technology shares. This was fueled by indications of tempering inflation in the face of largely resilient…

Silver-white, light, and highly reactive, lithium may not have been the marquee element on the periodic table, but it’s currently one of the most potent catalysts reshaping our contemporary world. Its pivotal role in the composition of lithium-ion batteries, which energize everything from smartphones to electric vehicles (EVs), has earned lithium the moniker of the “white gold” of the 21st century. In 2022, the global lithium supply catapulted to a remarkable 737,000 tons, indicating a significant leap from preceding years. Yet, this advancement is merely the preamble to a much…

In the sprawling wheat fields of Sharon Springs, Kansas, waves of golden wheat fall rhythmically under the combine operated by Laura Haffner. The wheat fields, covering 320 acres in this far-west region, are some of the most bountiful she has seen this season – a stark contrast to the devastating impacts of the years-long drought predicted to produce one of the poorest wheat crops in the country’s history. A break in the drought occurred unexpectedly in May, with heavy rains extending into July. Although this was a welcome respite for…

The dawn of H2 2023 provides us with the opportune moment to reflect on the half-year performance of the commodities market. According to our regularly updated Periodic Table of Commodities Returns, just two commodities yielded positive returns during the first half of the year: lithium and gold. Riding High on Lithium In H1 2023, lithium carved out a 10.81% return, a performance that crowned it the best-performing commodity. It was also one of only two commodities to record a positive return during this period; the other was gold. Other commodities…

As the sweltering days of summer set in and the familiar scent of barbecued fare wafts through neighborhoods, the annual grilling season kicks off. This year, however, the sizzle on your grill might sound a bit different. With increasing beef prices, consumers are turning to secondary cuts such as brisket, skirt, hanger, and flank steaks to satisfy their cravings, saving pricier middle cuts for special occasions. Despite the changes in the cuts being grilled, one thing remains steady – the strong demand for meat. Taking the Lead in Summer Grilling…

The world of oil trading is experiencing an unexpected surge, as Iran exports oil in volumes that have peaked to a five-year high in recent months. An uptick in demand from China and other nations is adding an expansive influx of discounted crude to an energy market already grappling with demand concerns. This oil tsunami from Iran is causing more than a ripple in the global oil landscape—it is threatening to capsize the efforts of major crude producers, including Saudi Arabia, in their bid to shore up oil prices by…