With US stock indexes looking top-heavy, long-term investment moneys could be looking for the next commodity complex sector to ride higher in 2026.
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Despite WTI crude oil's backwardated forward curve the last number of years, investment money has been coming out of crude oil as much of the world looks at green technology.
Don’t Miss a Day: From crude oil to coffee, sign up free for Barchart’s best-in-class commodity analysis. Based on the Law of Supply and Demand, and the spot-month WTI price falling to nearly 5-year lows, investors could wait to see what develops in crude oil.
As we approach the end of 2025, much of the chatter amongst talking heads on financial television has to do with investment money rolling out of equities and into other market sectors. I’ve been tracking the commodity complex as an investment arena rather than a casino for nearly four decades, looking for what sector might attract the next wave of investment money. As I’ve talked about before, the decision by investors tends to come down to long-term fundamentals. In some sectors, Grains and Softs in particular, this usually means long-term weather patterns. In other sectors, let’s clump Energies and Livestock together for now, it has to do with trends of physical supplies. What about the 3 rate cuts seen this past year, with the US president expected to lower rates at will in 2026? Will this spark a strong rally in commodities based on a collapsing US dollar? Not necessarily.
