The Reason Commodities Keep Rising? They’re a Home to Yield

  • Oil, copper, grains markets all trading in backwardation
  • Curve structures offer a return to investors who go long
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Commodities markets are booming. Oil is up about 30% this year, copper just hit a nine-year high and grains markets are experiencing shortages.

But there’s a subtler factor helping propel the value of the world’s raw materials ever higher: yield.