We often remind subscribers that commodities are cyclical and one of the best examples of recent times is coal which has rallied around 500% over the last year, not a move that many foresaw in 2020 when the fossil fuel continued unabated with its 2-year old bear market. The tricky part is knowing / guessing when to disembark the train because these style of moves often end in savage corrections with the key very often being how quickly can producers increase their supply to meet demand – in the case of coal we think that is harder to do for various reasons from financing to environmental permitting.
MM remains bullish coal although its feeling a bit “panicky” at present
