Insight - Commodities to veer between China hopes, pandemic fears

Premium price: A liquefied natural gas (LNG) tanker approaches a thermal power station in Futtsu, Japan. Strong energy demand, especially in winter is likely to keep LNG prices high. – Bloomberg

IF 2021 was a year of volatility and uneven performances for commodities, then 2022 is shaping up as a rinse and repeat as uncertainty over the recovery from the coronavirus pandemic remains the dominant theme.

On the surface, commodities had a strong year, outperforming other asset classes with the S&P Goldman Sachs Commodity Index index jumping 35% this year, beating the United States equity index S&P 500 for the first time in a decade.