Slight demand destruction is not enough to bring commodity prices consistently down?

[crgarcia]

Until we see massive overproduction, late 90s style; with new countries producing commodities for peanuts (like Vietnam producing coffee); commodities would not crash?

I'm not saying we'll see historic highs by the day; rather commodities may become nontrending markets with very high volatilities (the hardest markets to trade).

 

[John Paterson]

Quote from crgarcia:

Until we see massive overproduction, late 90s style; with new countries producing commodities for peanuts (like Vietnam producing coffee); commodities would not crash?

I'm not saying we'll see historic highs by the day; rather commodities may become nontrending markets with very high volatilities (the hardest markets to trade).

I agree that slight demand destruction is not enough. Just a pause in a longer term uptrend.

I see no crash in the near future. The equilibrium of demand/suppply has moved way up.

Unless a war happens and demand falls due to decreased population.

John