Commodity Supply & Demand: Inventories Tell the Story – USCF – 2.24.23

Summary:

Now On Demand

Commodities returned roughly 70% since 2021 while stocks, bonds and other liquid alternative assets declined. Investors frequently ask if they’ve already missed the inflation rally after two years of strong commodity performance. Our research shows that “super-cycles” in positive commodity returns tend to last for roughly 10 years, and we identified five such periods since 1900. Each long-term bull market cycle for commodities was preceded by a large commodity return drawdown. These periods of commodity price drawdowns typically coincide with lower commodity producer profits, lower capital expenditures and reduced production capacity. During the subsequent price super-cycle, production and supply are often unable to respond quickly to increasing demand, leading to several years of inventory depletion and rising commodity prices.

Speakers:

Ryan is USCF’s National Sales Director. In this capacity, Ryan is responsible for educating financial intermediaries on all USCF products, presenting USCF research and product development. Prior to joining USCF, Ryan was an Account Executive with Meridian-IQ where he worked with hundreds of financial services firms, including USCF, to help maximize their distribution efforts with the use of data and technology. Ryan is a graduate of Florida State University with degrees in Finance and Real Estate. Ryan is also a 2020 candidate in the Duke Fuqua Global executive MBA program. He holds NFA series 3 and 30 registrations as well as FINRA Series 7 and 63 and is a Chartered Alternative Investment Analyst charterholder.

Kurt is the CEO and Founder of SummerHaven. He previously ran the commodity index business for UBS and led the successful effort to acquire and integrate AIG’s commodity index business. Prior to joining UBS, Kurt structured commodity index and equity derivative solutions for clients of AIG Financial Products. SummerHaven Index Management, LLC creates innovative fundamental indexes focused on providing investors with better risk-adjusted returns than traditional indexes. The firm is led by a seasoned management team with over 110 years of collective financial markets experience with commodity futures, equity and fixed income markets. USCF has partnered with SummerHaven on several funds including the United States Commodity Index Fund (USCI), the United States Copper Index Fund (CPER), the USCF SummerHaven Dynamic Commodity Strategy No K-1 Fund (SDCI) and the USCF Gold Strategy Plus Income Fund (GLDX).