Where Will Commodities Go In 2021?

 | Dec 22, 2020 12:49AM ET

Monday brought a string of events as the country waited for Congress to vote on the stimulus bill, to the possibility of another wave of COVID, as a mutation of the virus is currently spreading throughout the UK.

With worries that the current vaccine rollout might not have an effect on the new strain, the market opened lower.

If you weren’t watching the market and had only read morning headlines, you might have expected a sorry sight at the close, yet by the end of the day each index closed green, filling the gap created from the morning's opening price.

While the market shrugged off yesterday's negativity, it should be noted that equities weren’t the only ones to participate in yesterday's rally.

Commodities joined in too, showing that we can’t forget about underlying supply and demand.

The pandemic has shown that supply chains can be very fragile and will take time to build back to their previous pre-pandemic state.

Even more, La Nina has arrived this year potentially affecting food commodities going into the next year.

With that said, checking the weekly charts can give us a good picture of how certain commodities have been setting up longer term.