The copper opportunity in one chart
Source: Bloomberg
US Senate approves bill to ban Russian uranium imports
The U.S. Senate approved on Tuesday legislation to bar imports of Russian uranium, as the United States continues to seek to disrupt Russia's efforts in its war against Ukraine. The Senate passed the measure by unanimous consent, meaning that no senators objected to it. The House of Representatives passed the bill in December. Uranium is used to power commercial nuclear reactors that produce electricity. The legislation would ban the imports 90 days after enactment. It contains waivers in case there were supply concerns for domestic reactors. The bill also frees up $2.7 billion passed in previous legislation to build out the domestic uranium processing industry. U.S. nuclear power plants imported around 12% of their uranium from Russia in 2022, according to the U.S. Energy Information Administration. Source: Reuters, Bloomberg
Goldman Sachs is pounding the table on AI energy theme, and pitching uranium miner cameco ($CCJ) as top commodity idea for the space.
Source: www.zerohedge.com
Nice relative price chart by Jay R. Ligon at TheeDisruptor
The 7 C's (Cattle, Corn, Crude, Cocoa, Cotton, Copper, Coffee) vs Consumer Discretionary $XLY Why? It is a clear measure of the inelastic demand for commodities (the ultimate staples) versus elastic demand of discretionaries. Plus we can eye inflation at work and the strength of commodities.
Cocoa Biggest Loss in 65 Years 🚨
Chocolate lovers rejoice! Cocoa suffers biggest daily loss in 65 years. Source: Barchart
The bonds market's inflation expectations just hit new 52-week highs.
Commodities are following the trend. Source: J-C Parets
Copper hits $10,000 for the first time in 2 years as speculation builds that the world’s mines will struggle to meet a coming wave of demand from green industries.
BlackRock, Trafigura see supply shortfalls unless prices gain. This week, Mining giant BHP Billiton has offered to buy rival Anglo American (ex-its South African iron ore and platinum assets) for USD 39 bn. According to Bloomberg, if the deal proves successful, “BHP-Anglo could control 11% of the mined copper supply”. This deal highlights copper’s dominance as the primary metal in the energy transition. Source: Bloomberg
BHP Billiton approached Anglo American to create the world's largest copper producer.
Yesterday, mining giant BHP Billiton has offered to buy rival Anglo American (ex-its South African iron ore and platinum assets) for USD 39 bn. According to Bloomberg, if the deal proves successful, “BHP-Anglo could control 11% of the mined copper supply”. This deal highlights copper’s dominance as the primary metal in the energy transition and underscores the significant consequences of the recent disruptive events affecting global supply. Copper’s upward trajectory is accelerating.
