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BB Investimentos releases an outlook report for 2024, focusing on commodities and stocks, highlighting Chinese imports and projected capacity increases.
BB Investimentos' outlook report for 2024 highlighted the importance of commodities next year, as well as the impact on shares. The bank points out that demand for pulp faced macroeconomic challenges in 2023, with the expectation of slower global growth and the possibility of recession in the US and Europe. The positive reaction to the increase in Chinese imports may indicate a correction in prices, however the recovery will depend on the supply and demand relationship, expected to occur only from 2025 onwards, keeping prices at lower levels.
For oil in 2024, prices are likely to be constrained by a combination of weaker demand and a higher supply level, given OPEC's latest decision to only extend to the first quarter of 2024 (1Q24) cuts of around 2,2 million barrels/day. BB's projection is for an average Brent barrel of US$87,10 for 2024. The reduction in geopolitical risks removed part of the risk premium, turning attention to compliance with OPEC quotas and Chinese demand.
Commodities: increased demand for oil drives the market
The commodities market is in constant motion, and demand for oil continues to drive the sector. The Brent barrel reached a new level, reflecting the growing projection de Chinese imports and increasing production capacity. The current scenario points to a decline in stocks, with supply unable to keep up with demand.
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Cuts and projection: impact of supply and demand in the commodities market
Cuts in production and supply and demand projections have directly influenced the price of oil, as well as the profitability of the cultivation of agricultural commodities. The turnaround in the livestock cycle and the domestic economy are also linked to the commodity listing process, highlighting market volatility.
Featured commodities: impact of increased capacity on profitability
The increase in capacity in the production of commodities has directly impacted the price of cereals and the profitability of cultivation. The high supply scenario and growing demand reflect market trends, with the domestic economy being affected by price fluctuations. The importance of commodities in the global economic scenario is undeniable, and projections for the future point to challenges and opportunities.
Source: moneytimes
