Since the start of 2021, everyone from Goldman Sachs, JPMorgan to Bank of America called the beginning of a new Supercycle and hot-listed Commodities as their “preferred asset class over the next decade”.
Unveiling the Unnoticed Momentum in the 2024 Commodities Supercycle
Fast forward four years on and it goes without saying that this Commodity Supercycle shows no signs of slowing down anytime soon.
2023 was the third consecutive year that saw a total of 27 commodities ranging from the Metals, Energies to Agriculture tallying up astronomical gains – outperforming every other asset class out there!
One again, that bullish momentum has spilled over into 2024 – sending a long-list of Commodities skyrocketing – with many notching up impressive double digit gains already within the first month of 2024.
Right now, one of the best kept secrets in the Commodities sector that nobody is paying attention is Agriculture.
So far this month, we’ve seen Cocoa prices soar to the highest level in 46-years to hit a new all-time record high. Meanwhile, Sugar prices have surged to a decade high – notching up a stunning gain of over 450% from their 2020 low.
And last, but not least, Robusta Coffee prices have climbed above $3,188 a metric ton to their highest level in 16-years – when the current form of the contract first started trading.
On-going disruptions in the Red Sea have significantly boosted Robusta coffee prices due to surging shipping costs and longer-than-usual travel times from Asia to Europe. The longer the Red Sea crisis goes on – the higher prices will go – inevitably opening the door to a major supply squeeze.
Elsewhere in the Energies complex, Natural Gas prices have climbed over 54% since mid-December.
Uranium’s Soaring Surge: A Closer Look at the Explosive Start to 2024
But there’s one Commodity that has continued to quietly break new record highs, almost on a weekly basis.
And that’s Uranium.
Uranium’s “third bull market” is off to a red-hot start in 2024 with spot prices rocketing above $106 per pound to hit their highest level in 17 years. That’s more than a 100% increase from their 2023 low. It is also a whopping gain of over 350% from their 2020 low.
According to analysts at GSC Commodity Intelligence – Uranium’s blistering rally could have further to run as global supply shortfalls accelerate at a record pace off the back of a “triple deficit” – low inventories, low spare capacity and low investment.
Whichever way you look at it, one thing is clear. The case for Commodities in a well-diversified portfolio has never been more obvious than it is right now!
Commodity Price Forecast
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions: