Commodity supercycle opportunities excite hedge fund interest

The commodities markets are one of the oldest prevailing markets in human history. Records from the 17th century show derivatives trading began then with rice futures in Japan. Both the complexity of the markets and the depth of commodity trading have certainly increased. Jamie Wynn-Williams examines what the present supercycle may mean for hedge funds and what the future may hold for this asset class

The commodity supercycle sounds exciting, but no one is quite sure where the name came from or what it really means. What is obvious is that the demand for commodities, hard or soft, industrial, energy, or agricultural, is at an all-time high and on a global scale.

The great thing that commodities bring to the trading table is volatility. Whether one believes in the continuation of the commodity supercycle or not it offers a great opportunity to make money on both the long and the short side