No nation is an island and the world continues to motor on even in the wake of European Debt crisis after crisis and environmental wake-up calls in select parts of the globe.
What do we know…feedstocks are all in growing demand. Oil, metals, corn and wheat. Guess what? All have faced big challenges in delivering on growth to meet increasing demand. Think about civil unrest, environmental impacts and a global population that grows at 2%+ year and is urbanizing at 10% pa. All equal: upward pressure and strains on supply lines…
Speculators raised their net-long positions in 18 commodities in the week ended May 31, government data compiled by Bloomberg show. The Standard & Poor’s GSCI Spot Index rose for a fourth straight week as Chinese metal inventories plunged and droughts lingered in the Asian country and Europe, trimming prospects for wheat and cotton crops. The global recovery “is gaining strength,” the Group of Eight leaders said May 27 after a summit in Deauville, France.
One final note: The Asia-Pacific region overtook North America last year as the world’s biggest derivatives market amid increasing demand for futures and options contracts in the region’s fast-growing economies, according to data from the Washington-based Futures Industry Association.
Pure plays, like commodities are trader’s friends. Asia – Pacific and Southern Cone are going to make huge strides this year and next and that means more volatility!!!
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