Commodity Markets in a Post COVID-19 World
By John Baffes, Ph.D., Senior Agriculture Economist, Prospects Group, World Bank and Member of both the JPMCC’s Research Council and the GCARD’s Editorial Advisory Board
The article discusses the uneven impact of the COVID-19 pandemic across the commodity market sectors. The author concludes that COVID-19’s impact on energy markets is likely to leave a permanent scar while the impact on other commodity markets will likely be transitory. In particular, the pandemic is likely to induce some longer term impacts on commodity markets, including lower oil consumption, changes in the cost of transport, unwinding of supply chains, and, in the longer term, substitution among commodities due to changes in consumer preferences.
Read Article