Missed the Gold Rally? Here’s Another Commodity Poised for a Major Boom

However, according to analysts at GSC Commodity Intelligence there’s another hot Commodity to watch – hailed as the “hidden gem”.

As the demand for Commodities continues to soar amid global supply storages, this under-the-radar “staple Commodity” has captured the attention of Wall Street’s most powerful institutions as the next major Commodity that could be destined for explosive upside.

And that’s Coffee.

Coffee Prices Hit 52-Year High

This week Coffee prices surged to their highest level in over 52 years as concerns over a global supply shortage added to market uncertainty over the impact of incoming EU laws on deforestation. And not to mention, perhaps one of the most bullish catalysts of all – President-elect Donald Trump’s promise to impose tariffs on all imported goods once he takes office in January.

On Friday, Arabica Coffee Futures, which serve as the global benchmark for Coffee prices – surpassed $3.30 per pound to score their highest closing price since 1972 – tallying up a whopping gain of more than 79%, so far this year.

This now positions Coffee as one of the strongest performing commodities of 2024 alongside Cocoa, which has seen prices nearly triple since the start of this year.

Coffee Prices Heat Up on EU Law and Trump Policy

And this could just be the beginning!

According to analysts at GSC Commodity Intelligence – the current boom in prices is being driven by global coffee roasters and commercial buyers who process beans for consumption – rushing to secure supplies ahead of a new incoming EU law that bans using deforested land for crops.

The move by European roasters and commercial buyers rushing to build their inventories for next year – has also triggered their U.S counterparts to come into the market too to ensure they do not get priced out.

U.S roasters and commercial buyers are also responding to President-elect Donald Trump’s promise to impose tariffs on all imported goods once he takes office in January.

Logically, it makes sense. If you know tariffs are coming in 2025 – then the smart move is to import now because otherwise you will end up paying much higher prices.

Generally,”Trumponomics” over the next 4 years, which includes disruptive policies like the introduction of trade tariffs on U.S. imports is ultimately viewed as inflationary and may lead to a “Second Wave of Inflation”.

Bottom Line

Whichever way you look at it, one thing is clear. The macroeconomic backdrop for Commodities heading into 2025 is looking more bullish than ever before – and it certainly won’t take much for prices to breach new record highs in the coming weeks and months ahead.