Commodity markets believe in anti-Covid vaccines
Audio 01:57
Commodity prices have been trending upward since the beginning of November, after the approval of Pfizer BioNTech's anti-Covid vaccine in the United States.
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By: Claire Fages Follow
5 mins
The trend was confirmed on Monday, after the approval of Pfizer BioNTech's anti-Covid vaccine in the United States.
Commodity prices have been trending upward since the beginning of November.
From petroleum to cotton.
Publicity
The S&P index, which assesses a whole basket of commodities, has jumped 14% since the start of November.
This coincides with the development of anti-Covid vaccines.
The curve has also continued to progress since the United States, the Food and Drug Administration accelerated the authorization of Pfizer BioNTech's vaccine.
With the authorization of the Moderna vaccine imminent, investors are betting on an economic recovery and an upturn in the consumption of basic products.
In energy, the index rose 24% in a month and a half.
The barrel of Brent has reached the level of 50 dollars, but it is above all marine fuel oil and diesel that see their prices rise, they benefit from increased traffic of containers and trucks, planes still largely on the ground.
Copper and iron ore at their highest for seven years
Metals are also experiencing a strong surge: 14% since early November.
Nickel, both an ingredient in stainless steel and electric batteries, has been at its highest for over a year.
Copper, also crucial for the energy transition, has been at a record level for seven years.
Just like iron ore, the acceleration in Chinese demand coincides with the return of cyclones to the Australian supplier.
Even thermal coal, which is increasingly criticized, has gained 25% in nearly two months.
Halftone cotton
As for agricultural products, the increase is + 5%.
Cereals and soybeans are on the rise and cotton is regaining color, thanks to increased demand from spinning mills in Pakistan and Bangladesh in West African countries.
The pound of fiber gained 7% to over 74 cents of the dollar.
Be careful, however, not to forget the difficulties, we analyze at Mambo.
The trader observes the bankruptcies of textile retailers: “
The vaccine is not the miracle solution, its distribution will pose big problems.
Economic recovery from the virus could take many years and we must be mindful of the risks, which could lead to a significant downward correction in
commodity prices.
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