Citigroup believes that the rest of the time in 2021, commodity prices should be a strong rebound, favorite varieties including oil, copper and corn, commodities "seems will have bumper year" in 2021, most of the demand of the market will be more than 5.5% of global GDP growth forecast, the recent fall by worries about the global recovery and technical factors mutual influence.
The recent decline has been influenced by a combination of concerns about the pace of the global recovery and technical factors.
In the absence of factors such as a weaker dollar and major oil supply disruptions, the rally may not herald the start of a commodity supercycle, which requires three to five years of across-the-board gains.
Among Citi's bullish trades in commodities: Palladium will outperform gold by 22 per cent over the next six to 12 months.
Copper is set to hit a record $10,500 a tonne in the next three to six months, which could be "the super part of the cycle".
In fact, several institutions have been bullish on copper and oil prices for some time, and the "supercycle" for copper commodities is "just getting started."
Similarly, Citi is bullish on aluminium in the medium to long term, with the supply side constrained for the first time in nearly 30 years.
This year's market is the most difficult to grasp.
On the supply side, Chile said last week it would close its border in April in response to a new wave of Coronavirus cases;
The Ministry of Energy and Mining said late Monday that maritime transport or normal operations of mines wouldn't be affected.
Clearly, there will be some impact on the movement of people and goods on land between mines and ports, and the restrictions "are likely to last at least three to four weeks;
Energy: Bullish for ICE Brent on expected drawdown in inventories, North Sea maintenance and recovery in demand west of the Suez Canal.
PUDA copper concentrate packing machine:
