As Long as Its Starts with The Letter C. Manic Metals Report 06/27/2024

You know the commodities are hot when the 3C’s are rocking, as in, crude oil corn and copper. Yet one famous investor seems to be giving up one  “C” for another. Replace crude with cocoa and copper.

Hedge Fund Investor Pierre Andurand who gained national recognition for writing the glory days of the incredible crude oil bull market in the 2000s (boy I missed those days), now it’s giving up crude oil trading in favor of cocoa and copper.
Cocoa’s bull market saw that commodity hit unprecedented highs as a global supply squeeze and currency fluctuations made that commodity pound for pound one of the most valuable commodities on the planet.

Mr. Andurand abandoned his beloved crude and has been taking advantage of the bull run in copper that is facing a structural shortage as the global demand for electric conductivity is surging to meet the demand oiled by our data and artificial intelligence economy of the future.

He is being drawn to these commodities as he realizes, like he did, in the early 2000’s we are in a super cycle. not just in crude, buy many commodities across the board.

And seeing that the word commodity starts with the letter C, why not fall back on the classic commodities that start with the Letter C, such as Cocoa, Copper, Corn and do not forget our old friend crude.

And people that are following the commodity complex realized that a super cycle is underway.
That’s not to say that all these commodities go up every day, but we know that there is supply tightness over the years. The lack of investment short sighted thinking or because the prices were low.
Also, risng inflation also means you need much higher commodity prices to justify ther increased cost of investment.
So, like Mr. Andurand, during this super cycle we will see investment shift from one C (as in commodity) to another. Those shifts will come based upon short term price influences like economic data and inventory and demand shifts. Yet in the big picture the overall commodity rally is just getting started and be prepared to move.

Yesterday precious metals pulled back and concerns about the Japanese currency the Japanese currency hit the lowest levels versus the dollar since 1986 .
The market was expecting that the Japanese central bank would intervene. Then after comments out of some Japanese officials that intervention probably wasn’t imminent.
That caused the markets to pull back across the metals complex .
Of course that’s what the Japanese officials want you to believe. Usually before central banks intervene in the currency, they want to get the market leaning the wrong way.

That is a very strong possibility when it comes to the metals today durable goods orders is going to be huge for this market.
We would recommend buying calls across the metals complex on this pullback platinum continues to be the metal that shines the brightest .

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