By Kevin Grewal
As economies around the world continue to grow and develop, commodities are likely to remain attractive and for good reason.
Emerging markets are anticipated to grow at exponential rates in the coming year. China is expected to grow at a rate greater than 8%, India is expected to grow close to 7% and other nations in Africa and Latin America are expected to show some signs of prosperity as well. To add to this growth, developed nations like the United States are expected to grow which will further bolster upward pressure on commodity prices.
In fact, supply and demand forces have already been taken putting pressure on commodity prices evident through the recent uptick seen in the Batic Dry Index (BDI). The BDI is an efficient indicator of future economic growth and production and measures the price of shipping dry bulk. As international demand of commodities increases, the price to ship dry bulk generally increases as well. Read More…