Commodity Supercycle Gathers Momentum – What’s Next For Prices
Last week, Palladium, Iron Ore and Lumber prices took centre-stage skyrocketing to all-time record highs. Meanwhile Copper and Aluminium prices hit 10-year highs. Both metals have now doubled from the lows seen a year ago.
There are plenty of fundamental factors why commodities are on the move, but the key driver is a vaccine-led recovery fuelled by massive amounts of global stimulus into Green Energy and Infrastructure projects. This is against a backdrop of tightening supply across many high-in-demand commodities, which firmly suggests that a new supercycle is now underway.
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Interestingly, this year many commodities have already exceeded the highs of the previous supercycle seen during the early 2000s – And this is just the beginning!
Looking ahead to this week, the key macro events that traders will be watching closely for clues on the markets next big move include; ISM Manufacturing PMI, ADP Employment Change and Jobless Claims as well as the biggest event of the week – Non-Farm Payrolls data on Friday.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions: