Business Monitor International (BMI)’s Commodities Team believes that La Niña weather patterns are likely to return at the end of 2011. The US National Weather Service warned on September 8 that La Niña, the weather condition that caused volatility in commodity markets at the beginning of 2011, has already returned and should strengthen by the… [Read more]
Coffee is shaping up to post a strong monthly close which bolsters my medium-term bullish view. Moreover, while not my core scenario, I would not rule out a significant spike in prices over the coming months, as has happened in the past. My colleagues at Business Monitor Online recently alluded to this potential in late… [Read more]
This week Mark Schaltuper is joined by Cedric Chehab, Head of Commodities Research at BMI, to discuss the outlook for the commodity complex. With macroeconomic headwinds in the making, how will cyclical commodities perform relative to grains and softs, and what are the risks of gold forming a bubble?
I expect soft commodity markets to continue trading in a volatile fashion over the coming weeks driven chiefly by their own specific supply and demand dynamics, rather than wider macro-developments. My key thoughts are as follows: The cocoa market will likely to remain volatile and I do not rule out continued gains in the coming… [Read more]
