In recent years, the commodities market has experienced significant fluctuations. For instance, in 2020, oil prices plummeted from around $60 per barrel in January to under $12 per barrel in April(Negative in the front month contract), marking around an 80% decline due to reduced demand and a supply glut. Conversely, lumber prices skyrocketed from approximately $300 per thousand board feet in April 2020 to over $1,600 by May 2021, representing an almost 400% increase driven by a booming housing market and supply chain disruptions.
Similarly, copper prices surged from $2.50 per pound in March 2020 to over $4.70 in May 2021, a rise of nearly 90%, as global economic recovery spurred demand. Wheat also saw significant movement, increasing from $5 per bushel in June 2020 to $10 in March 2022, a 100% rise, due to global supply concerns and rising demand.
This year, cocoa prices have surged by over 200%, climbing from $2,300 per metric ton in January to over $7,000 in July, driven by supply shortages and increased demand. These examples underscore the volatile nature of commodities and the diverse factors influencing their prices, from global economic conditions to supply chain disruptions and changes in consumer demand.
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Warm regards, Jason Perz
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