Cocoa prices are on the rise, hitting new records as Easter approaches, primarily due to poor harvests in West Africa. This surge in cocoa, a vital ingredient for chocolate, is attributed to drought and disease affecting the crops, compounded by decades of underinvestment and lack of support for cocoa farmers.
Similarly, copper is experiencing a rally, reaching an 11-month high. This surge in demand is evidenced by a significant increase in open interest on the London Metal Exchange, indicating a strong appetite among buyers. The positive global economic outlook and potential supply risks at mines and smelters have contributed to copper's 8.5% gain over the past six weeks.
The electric vehicle (EV) sector is also facing new challenges and opportunities. The Biden administration's stringent emission limits will force automakers to accelerate the adoption of battery-electric and plug-in hybrid models. These new standards aim to significantly reduce carbon dioxide emissions by 2032, pushing the industry towards more sustainable practices.
Oil markets are witnessing a continued upswing, with West Texas Intermediate and Brent futures marking a third consecutive month of gains. This trend is driven by tight supplies, output cuts from OPEC and its allies, and geopolitical risks, including attacks that affect oil transportation routes.
On the renewables front, the pace of deals for solar and wind projects has slowed, reflecting a decrease in power-generating capacity acquisitions. This downturn, as reported by BloombergNEF, is due to macroeconomic challenges and the volatility of electricity prices.
