The surge in global prices for all types of commodities is having many effects from adding inflationary pressure to driving up energy and food bills. For companies like Goldman Sachs, this is good news as it declares yet again a 10-year commodity super cycle. “Currently, we are seeing record dislocations in energy markets, metals markets, and agriculture markets,” global head of commodities research at Goldman Sachs, Jeff Currie, told Bloomberg Television recently. “There is still a lot of money in the system, while investment positions in commodities are very low, which is setting the stage for further upsides in oil prices and the prices of other commodities.” For Goldman Sachs this is the beginning of a 10-year super cycle in commodities. Certainly, commodities have performed extraordinarily well recently and the Bloomberg Commodity index has been up by as much as 35% over the course of 2021. It seems to be the asset class of choice. It has certainly meant record bonuses for Goldman partners. For those of us in commodity-based industries, this is largely good news. For example, we expect 2022 to be a strong year for CTRM and related software sales reaching $1,858m in 2022 – an increase of… continue reading
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