Commodity

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…

Chocoholics brace yourselves; chocolate is about to become significantly more expensive. With the gustatory key ingredient, cocoa, trading at its highest level in almost forty years, the sweet indulgence that has long been considered an affordable luxury is taking a hit. This escalation is fuelled by strong demand, a global shortfall in cocoa production, and adverse weather predictions in West Africa – the largest cocoa-producing region in the world. Benchmark cocoa futures prices in London have surged by over 32% this year, making cocoa one of the world’s best investments…

Just as the world was starting to breathe a sigh of relief after the tumultuous impact of the pandemic and Russia’s invasion of Ukraine on food prices, a new threat looms on the horizon. A drought spanning across America’s breadbasket threatens to exacerbate food inflation, further straining consumers’ wallets. The dry spell has affected the wheat fields of the Great Plains and the Corn Belt in the Upper Midwest, leaving some areas with mere fractions of their regular rainfall as we approach crucial growing periods for corn and soybeans. This…

The agriculture markets, particularly corn and soybeans, are currently being whipped by the winds of a “weather market.” A potent combination of widespread dryness and blistering heat across major growing regions has thrown the possibility of top yields out the window. Despite hopes for improved conditions, the prospects remain slim without substantial rainfall. This persistent hot and dry weather leaves crops vulnerable, creating a volatile trading environment ripe with speculation and leading to significant rallies in corn and soybean prices. Corn and Soybeans: A Withering Tale Crop conditions across the…

Glencore’s aggressive pursuit of Canada’s Teck Resources has put a spotlight on the race to secure access to copper. Historically considered a cyclical economic indicator, copper is now also positioned to play an essential role in the global green transition—accelerated by recent legislation, including the U.S. Inflation Reduction Act (IRA), passed last year. Green technologies such as electric vehicles and solar panels require more copper than their fossil-fuel-based counterparts, and supply growth is expected to fall significantly short of demand in the next decade. In early to mid-2023, China’s sluggish…

Copper is one of the most important industrial metals in the world. It is used in a wide range of applications, from construction to electronics to transportation. The price of copper has been closely monitored by investors and economists alike, as it is considered a leading indicator of economic growth and activity. In this article, we will examine why copper price is so important to the economy and how it can predict and react to economic fluctuations. Why is Copper Price So Important? Copper is widely used in industrial applications,…