David Osman of the IRF Podcast is joined by Kathleen Kelley of Queen Anne's Gate Capital to discuss "The Myths and Maths of Commodity Investing".----more----

Katheen Kelley, the CEO of Queen Anne’s Gate Capital, is a former commodities fund manager at Tudor Investment and Kingdon Capital. Kathleen is adamant we are not entering a commodity super cycle because every commodity comes with its own cycle and should be addressed individually. However, whilst some commodity markets, particularly metals, seem to be rolling over, energy markets should continue to rise and as an input to every other commodity this will provide a floor to commodities overall. We should expect the largest draw in oil inventory to come this quarter, leading to a sharp rise in crude oil prices, as demand outpaces supply.  Supply remains constrained with OPEC being more disciplined and US companies respecting shareholder demands to return capital.  Kathleen discusses her inflation expectations in relation to gasoline and gold prices, as well as China’s demand for metals and their determination to keep prices low to boost economic growth. She also talks about China’s new ESG strategy in terms of commodity production and her insights on soft commodities, which have much shorter cycles. Kathleen discusses coffee, sugar, cocoa, wheat, corn, soyabeans, and one of the most interesting markets vegetable oil with the increasing demand for biofuels.