I am pencilling in a correction in Crude Palm Oil (CPO) prices over the coming months, before a resumption of the long-term uptrend. The spectacular rally in CPO prices since mid-2010 has been underpinned by several dynamics. First and foremost, the rally in grain prices since the middle of last year has driven gains. Given… [Read more]
My colleagues in BMI’s Commodities Team believe that many of the themes we have been highlighting in 2010 will continue to play out in 2011. In sum, the house view is that commodity prices will remain elevated over the course of next year, with cyclical commodities such as base metals potentially outperforming. We also see… [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?
Risk watchdog had been bullish towards the agricultural complex for some time, but last week’s barrage of data from the US Department of Agriculture (USDA) has proved a bit of a game changer. Specifically, while still optimistic on the outlook for soft commodities such as coffee, cocoa and sugar, me and my colleagues here at… [Read more]
We revisit the theme of China’s procurement of natural resources on a massive scale, and its impact on commodity markets. Matt Mirecki and Cedric Chehab discuss the sustainability of Chinese strategic stockpiling of metals and grains in light of persisting over-capacity in the economy. Cedric further explains why his outlook for the general commodity complex… [Read more]
