The COVID Commodity Supercycle Part 2

Commodity markets are cyclical, with the seeds for each new cycle planted at the end of the previous one

Ironically, the same productive capacity that was built to meet elevated levels of demand also sows the seeds of the supercycle’s end. This happens as producers, who are all scrambling to supply as much as possible in order to make as much money as they can, bring so much new supply online that the market becomes oversupplied.

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