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Almost all commodities have more than 50% concentration in their top supplier country, according to data from BofA Securities.
When analyzing 18 major commodities, it is apparent that nearly all commodities have a very high concentration within their top supplier country, as a percentage of global production.
China is the largest producer of more commodity assets, including steel aluminum (46% of global production), coal (46%), iron ore (45%), cotton (25%), rice (27%), and wheat (18%).
In addition, BofA analysts said that commodities are entering a secular bull cycle, and investors should consider them in the 40% or their 60/40 investment portfolios.
These are the 18 major commodities and their top supplier country concentrations, as a percentage of global production:
- Lithium (LITP) – Top 5 countries suppliers: Australia (45%), Chile (29%), China (14%), Argentina (5%), US (4%)
- Uranium (URA) – Top 5 countries suppliers: Commonwealth of Independent States (55%), Canada (15%), Namibia (11%), Australia (8%), Niger (4%)
- Crude oil (CL1:COM) – Top 5 countries suppliers: OPEC+ (58%), U.S. (15%), Canada (6%), China (5%), Brazil (4%)
- Soybeans (S_1:COM) – Top 5 countries suppliers: Brazil (35%), U.S. (34%), Argentina (11%), China (4%), India (4%)
- Cobalt (LCO1:COM) – Top 5 countries suppliers: Democratic Republic of the Congo (73%), Indonesia (5%), Australia (3%), Philippines (3%), Cuba (3%)
- Iron ore (SCO:COM) – Top 5 countries suppliers: China (45%), Australia (18%), Brazil (13%), India (5%), Russia (4%)
- Nickel (LN1:COM) – Top 5 countries suppliers: Indonesia (40%), Philippines (15%), Russia (10%), New Caledonia (7%), Australia (6%)
- Coal (XAL1:COM) – Top 5 countries suppliers: China (46%), India (9%), U.S. (9%), Australia (7%), Indonesia (6%)
- Cotton (CT1:COM) – Top 5 countries suppliers: China (25%), India (21%), U.S. (13%), Brazil (12%), Australia (5%)
- Corn (C_1:COM) – Top 5 countries suppliers: US (30%), China (24%), Brazil (11%), Argentina (5%), India (3%)
- Rice (RR1:COM) – Top 5 countries suppliers: China (27%), India (25%), Bangladesh (7%), Indonesia (7%), Vietnam (6%)
- Coffee (KC1:COM) – Top 5 countries suppliers: Brazil (30%), Vietnam (19%), Colombia (9%), Indonesia (8%), Ethiopia (4%)
- Aluminum (LMAHDS03:COM) – Top 5 countries suppliers: China (46%), Russia (8%), Canada (6%), U.S. (4%), United Arab Emirates (4%)
- Copper (HG1:COM) – Top 5 countries suppliers: Chile (27%), Peru (10%), China (8%), Democratic Republic of the Congo (8%), U.S. (6%)
- Silver (SLV) – Top 5 countries suppliers: Mexico (23%), China (14%), Peru (12%), Poland (5%), Chile (5%)
- Sugar (SB1:COM) – Top 5 countries suppliers: Brazil (22%), India (19%), Thailand (6%), China (5%), U.S. (5%)
- Natural gas (NG1:COM) – Top 5 countries suppliers: US (23%), Russia (17%), Iran (6%), China (5%), Qatar (4%)
- Wheat (W_1:COM) – Top 5 countries suppliers: China (18%), India (14%), Russia (11%), U.S. (7%), Canada (5%)