Commodity market foresight is featured with our new 2021 Futures Outlook Guide, a complete resource for strategy and insight to help inform your commodity futures trading in 2021. Through detailed research, learn how markets are predicted to perform in the new year with an in-depth performance review of key markets, including Grain, Energy and Metals.
2020 was a weird year for everybody across the globe. The Covid-19 pandemic impacted every aspect of business and life and the markets were no different. However, we still saw the US stock market hit all-time highs, new highs in metals like gold and silver, China imported US grains, and so much more. Our 2021 Futures Outlook breaks down everything that happened in 2020 and uses it to create a detailed outlook and prediction of how 2021 will look.
2021 Grain Outlook
What is in store for the corn, soy and wheat markets this spring? With the USDA Prospective Plantings report out, we have our first look at producer planting intentions for 2020. How did Covid-19 impact the market? What does this mean for the crops this year? How about supply? How does the weather look? How will Covid-19 continue to impact demand? What does this mean for prices? We will try to answer these questions in our Spring Crop Outlook.
- As China increased their demand for livestock, their soybean import numbers also rose, to the tune of 13%. Unless something crazy happens, this trend could push US Soybean bushel projections higher by 50 million bushels.
- China has been one of the biggest buyers of US corn for the 2020-2021 crop year and that trend looks to continue into 2021-2022. The USDA Sales Export Report shows that China purchased 151,197 tonnes of US corn during the week of Jan 7, which was up from 90,424 the previous week
- The wheat market remains in a steep uptrend, having seen significant gains since the 2020 harvest low on June 26. Tightening US and world ending stocks have been providing underlying support. The world supply is still large and it would take a huge influx of bullish news to push prices above January highs.
2021 Metals Outlook
Gold hit all-time highs in 2020 and our experts don’t think the run is over. After historically being considered safe-haven investments, 2021 could bring gold and silver their most diverse bullish environments ever. Precious metals will not be immune to flight qualities, but we could see other fundamental factors become driving forces. Inflation, higher costs of clean energy, bitcoin and other factors are players to watch that may impact the gold market drive prices higher in 2021
- Production, mining, and supply numbers for precious metals and how those numbers will impact prices
- Precious metal demand and outside factors that may influence numbers and drive prices higher
- ETF holdings
2021 Energy Outlook
All things considered, 2020 was a pretty big year for the energy markets. Crude oil managed to reverse its fortunes and avoid a multi-year bear market. Natural Gas saw some surging demands in China and India that should be taken seriously as those demands help keep prices afloat at least a little. With the Covid-19 pandemic surging on it will be interesting to see how the energy markets react in 2021.
- OPEC+ and US Oil Producers are expected to bring back some on-line production in 2021
- We may see some slack demand for RBOB and ULSD in early 2021
- The USD falling to 2.5 -year lows in the first quarter of 2021 should support demand for US gas export.