A huge new development in commodities signals opportunity ahead

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Today’s issue in preview:

• A huge new development in commodities signals opportunity ahead

• How rising food prices could create big investment returns. Three stocks and one ETF to consider.

• Our extraordinary track record gets better: Our thematic trades in oil stocks, copper stocks, and Canadian stocks run to new highs.

• Learn our Top Themes to buy today

A huge new development in commodities signals opportunity ahead

Credit: robas

Investors who took our advice and secured a position in the critical resources megatrend have reason to celebrate today.

One of the giants of the industry, BHP Group (BHP), reached a new all-time high this week.

This is a powerful bullish signal with big implications for your portfolio.

Over the past year, we have written more than two dozen research notes on trends, opportunities, and actionable stock ideas in the critical resources industry.

In today’s high-tech world of iPhones, ChatGPT, video streaming, and Instagram, it’s easy to forget our world is built on a low-tech foundation of steel, gravel, copper, crude oil, rubber, aluminum, concrete, and lumber. Plus…

• Every day, our cars, trucks, and airplanes consume millions of barrels of fuel.

• Our lights turn on because we burn coal and natural gas.

• We eat thanks to large farming industries that produce livestock, corn, rice, coffee, sugar, wheat, vegetables, and fruit. Huge fertilizer mining and processing operations enable large scale farming.

• Most of the clothes we wear are made from cotton, wool, nylon, and polyester (the last two are derived from crude oil).

• Building and maintaining our electric grids requires millions of pounds of copper, aluminum, zinc, and steel.

• Sourcing, processing, and transporting clean water are industries we cannot live without.

• Our high-tech batteries require large amounts of nickel, cobalt, graphite, and lithium

• Our phones, computers, cars, robots, defense systems, drones, satellites, and medical devices annually consume huge amounts of specialty metals known as “rare earth elements.”

Mining, extracting, planting, harvesting, processing, refining, and transporting critical vital resources is a multi-trillion-dollar business that affects every area of your life.

You are likely only reading these words because somebody somewhere ran coal, natural gas, or uranium through a power plant and created the modern miracle of electricity.

Mankind’s constant demand for raw materials ensures that the critical resource sector will always be one of the world’s biggest, most important industries… one that frequently presents significant business and investment opportunities.

Here in 2026, many critical resource industries are in bull markets thanks to soaring demand from high-tech applications such as batteries, data centers, EVs, and phones. Plus, billions of people across Asia and Africa still live on incomes that would be considered extremely low by Western standards.

Many households have limited access to automobiles, air conditioning, modern appliances, reliable electricity, high-quality housing, healthcare, and other goods and services that Americans and Europeans often take for granted. Their per-capita consumption of energy, metals, and manufactured goods is also far below Western levels.

But that gap represents enormous potential for change. As developing economies industrialize, urbanize, build infrastructure, and become more productive, hundreds of millions of people could enter the global middle class. Rising incomes typically lead to greater consumption of electricity, transportation, housing, appliances, and electronics, as well as better food and healthcare.

If billions of people gradually move toward even a fraction of Western living standards, it could create decades of additional demand for energy, commodities, infrastructure, and consumer goods.

Plus, key parts of the world economy are deglobalizing, which is driving competition for critical resources and raising their prices.

BHP is a big beneficiary of all this. With a market cap of $237 billion, it is one of the world’s largest mining companies. It’s a giant diversified producer of iron ore, copper, coal, uranium, and gold.

BHP owns outright or partially a large portfolio of world-class resource projects, including the giant Escondida copper mine in Chile… the giant uranium/copper/gold Olympic Dam mine in Australia… and one of the world’s largest iron ore mining operations, located in Western Australia.

Thanks to its giant size and portfolio of world-class deposits, BHP is a “go to” stock for large money managers when they want to take a position in critical resources. Its new all-time high indicates the trend in this area of the market is strong and going in the right direction for bulls.

Critical resources is a varied world of companies and assets. Recently, we’ve detailed actionable opportunities in copper, construction aggregates, oil and gas pipelines, timberland, Canada, Brazil, offshore oil drilling, and silver.

The fact that industry giant BHP recently hit a new all-time high indicates that we are in a bull market for the themes and assets detailed above. We remain bullish on critical resources!

How rising food prices could create big investment returns. Three stocks and one ETF to consider.

Credit: ValentynVolkov

Above, we detail how mining giant BHP is benefitting from the trend of higher iron ore, uranium, copper, and gold prices. It’s thriving in the business of the resources we use to build.

But don’t forget about investment opportunities in the business of resources we eat.

Ask a family’s grocery buyer about the state of food prices, and you’re bound to hear about the soaring price of hamburger and steak.

Unfortunately, beef prices have been up 20%-30% over the past two years, depending on the cut, according to the USDA. This has made events like Taco Tuesday, Steak Night, and Burger Night a lot more expensive.

The increase in beef prices is due to several factors. One, the price of everything has been up over the past two years. As we detail in this research note, the government is spending far more than it takes in via tax revenues. It is borrowing and printing money to cover the shortfall. This is devaluing the dollar rapidly. This means the cost for everything required to run a cattle operation is going up. Feed costs. Insurance costs. Fuel costs. Insurance costs. Labor costs. These rising costs are reflected in higher-end product costs.

In addition to rising overall costs, cattle operations in key production areas like Oklahoma and Texas are dealing with the effects of drought, which raises feed costs.

Rising beef costs are one part of an overall trend of rising food costs, thanks to dollar debasement and weather changes that are depressing crop yields. Some agricultural experts believe a strengthening El Niño will make these problems even worse over the next 12 months.

The factors above are driving a bull market in the Invesco DB Agriculture Fund (DBA).

DBA is an ETF that provides investors with broad exposure to agricultural commodity prices through futures contracts. It’s one of the largest and most liquid ways for investors to take a diversified position in corn, wheat, cattle, hogs, soybeans, cocoa, sugar, and cotton.

As you can see in the chart below, DBA is trading in an established series of higher highs and higher lows, which is pretty much the definition of a bull market. The fund is up 24% over those two years.

This is a bullish tailwind for agricultural stocks like fertilizer giants Nutrien (NTR), CF Industries (CF), and Mosaic (MOS). Keep these firms on your radar… they could become big winners as the resource bull market runs higher.

Market Notes

• Our recommendation to invest in critical resource-rich Canada continues to generate returns. The iShares MSCI Canada ETF (EWC) reached a new all-time high today.

• Our September 2025 recommendation to get long the oil and gas uptrend continues to pay off. The State Street Energy Select Sector SPDR ETF (XLE) hit a new high today. Individual stock leaders Chevron (CVX), ConocoPhillips (COP), Canadian Natural Resources (CNQ), Talos Energy (TALO), Cenovus (CVE), and EOG Resources (EOG), reached new highs today.

• Gold miner SSR Mining (SSRM) reached a new all-time high today.

• Our recommendation to get long copper via copper miners is a winner. Copper mining giant Freeport-McMoRan (FCX) reached a new all-time high today.

• Mega retailer Target (TGT) reached a new one-year high today.

• Bitcoin reached a new multi-month high today.

Regards,

Brian Hunt
Editor, Money & Megatrends

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