1 day ago

Cotton futures prices keep rising

Weather in cotton producing states like Texas has been tough both with a lack of water in some parts and a over abundance of it near the Hurricane Hanna. A weakened dollar has reduced the price of US bales for foreign cotton buyers. source: WSJ

#Commodities
cotton price surge

1 day ago

Germany has the most expensive electricity in the world

Germany is the number one in the list, with the most expensive electricity in the world. One kilowatt-hour now costs 0.34 euros, which is twice as much as in Sweden and three times the price in the US. This difference is explained through energy transition and high subsidies for electricity, according to Reuters. 

#Commodities
Electricity prices: not all countries are equal

1 day ago

Lithium supply-demand mismatch

Lithium is needed for electric cars and the move towards a battery-stored clean energy future. As highlighted in this chart by Blackstone Resources, the problem is that demand vastly outstrips supply.

#Commodities
Lithium demand vs supply

2 days ago

China imports all the oil

China almost single-handedly saved commodity demand in 2020, importing record level of crude oil this year following the collapse of oil prices amid the coronavirus pandemic. Oil was not the only commodity massively bought by China, this high demand was also there for copper, iron ore and coal. However, it would be rather risky to assume that 2021 will be a repeat strong performance, as data shows that China's massive buying spree appears to be ending. 

#Commodities
China's commodity demand

2 days ago

Oil price upgrades are on their way

JP Morgan ups oil price forecasts. Despite the COVID situation the team sees that investors continue to β€œlook through” the current situation to a time when mobility is normalized. They see OECD inventory normalizing by August 2021 vs. December in their previous forecast. WTI is forecasted to average $58/bbl in 2021 and $62 in 2022. Will energy stocks continue their catch-up with the rest of the market? 

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