The truly unsettling question, when it comes to grains, is what happens if we see a continuation of record-busting China demand, a weakening dollar (which boosts commodity prices), and a full-on global drought. Global grain supply was also restricted by government responses to the pandemic, with multiple grain-producing countries restricting their exports. and South America impacting production more than expected: When there isn’t enough rain, the crops don’t grow. One of the factors there was dry weather in both the U.S. By the summer of 2016, copper prices had fallen more than 50%.
Global mining investment has been depressed for years - it is roughly a third of the levels from five years ago, according to commodities research firm Wood Mackenzie - and is not expected to rise in 2021.Ĭopper’s last boom peaked out in spring 2011.
The mining business is highly cyclical, and the world’s miners come into 2021 with significant cutbacks to their production budgets. That is good news for the world’s copper miners, but it is also bad news because they are nowhere near prepared. is likely to lead the way with a multi-trillion-dollar infrastructure package, but other Western nations, like Germany and the U.K., are likely to follow suit.Īt the same time, the “green industrial revolution” now taking place - a process in which electric car-charging stations vie with gas stations, solar panels see exponential uptake, and millions of homes and businesses are retrofitted for energy efficiency - will demand vast amounts of copper.
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