Chocolate pricing

The Commodity Gauges Underlying Goldman’s Ultra-Bullish View

(Bloomberg) – Goldman Sachs Group Inc.’s commodities guru says he’s never seen markets this bullish before. These are the measures that explain what he was talking about.

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According to data compiled by Bloomberg.

Commodities trade backwards, where short-term prices are higher than longer-term ones, when they are scarce. On Monday, Goldman analyst Jeff Currie said the world was in the midst of a “molecule crisis.”

“We’re out of everything, I don’t care if it’s oil, gas, coal, copper, aluminum, you name it, we’re out of it,” Currie said in an interview. to Bloomberg TV on Monday. Futures curves gauge shortages, the likes of which he has not seen in 30 years, he added.

The strength comes amid a hot commodity market that has already seen the Bloomberg Commodity Spot Index hit new highs this year. In energy markets, strong demand for oil and gas has outstripped supply’s ability to keep pace. Metal prices have also been supported by supply shortages around the world, particularly as consumption increases amid the push for cleaner energy. In agriculture, crop production was capped by poor weather, with drought limiting prospects for soybeans across South America.

“At the heart of it all is the energy transition, it’s going to impact commodities for the foreseeable future,” said Daniel Hynes, senior strategist at Australia & New Zealand Banking Group Ltd. “Spare capacity is relatively small and it can simply” offset the potential supply risk.

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