Commodity

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,…

Zinc is an essential metal used in many industries such as construction, transportation, and electronics. It is a widely available and versatile metal that has unique characteristics that make it an attractive target in the metal market. In this article, we will explore what makes zinc an unique target in the metal market. Abundance: Zinc is the 24th most abundant element in the Earth’s crust. It is found in minerals such as sphalerite, wurtzite, and smithsonite. The largest reserves of zinc are found in Australia, China, and Peru. Its abundance…

According to analysts, a global copper deficit is expected to affect the markets throughout 2023 and potentially last for the rest of the decade. The current shortage is being driven by challenges in South American supply streams and rising demand.Copper plays a crucial role in measuring the economic health as it is widely used in various applications, including electrical equipment and industrial machinery. A shortage of copper may signal a worsening of global inflationary pressures, leading to a prolonged hawkish stance by central banks.Robin Griffin, Vice President of Metals and…

Wheat prices are a critical component of the global food and agriculture industries, with fluctuations affecting both producers and consumers worldwide. In 2023, the outlook for wheat prices remains uncertain, with a range of positive and negative factors influencing the market. One major factor affecting wheat prices in 2023 is the global demand for food and animal feed. As the world’s population continues to grow, demand for wheat as a staple food source is expected to increase, driving up prices. Additionally, the growing demand for animal feed made from wheat…

Corn prices have been in the spotlight in recent years, with market fluctuations and demand changes affecting the global food and fuel markets. In 2023, the outlook for corn prices remains uncertain, with both positive and negative factors affecting the market. One major factor affecting corn prices in 2023 is the global demand for food and biofuels. As the world’s population continues to grow, demand for corn as a food source is expected to increase, driving up prices. Meanwhile, the increasing use of corn for biofuels is also expected to…

As the global economy continues its healing process in 2023, investors are increasingly looking to commodities as a hedge against inflation. Copper is one of the most promising of these commodities, with analysts predicting that it will outperform most other metals by the end of the year. Read on to discover why copper could be set to shine in 2023 and how to capitalize on it in your portfolio. Introduction to the Commodities Market The commodities market is full of opportunity for those who know how to read it. For…