Commodity analysis: its application in the context of the South African mining finance house

In this paper the authors present their views on the actual and potential role of commodity analysis in mining industry. Owing to the dominant influence of the economy on all commodity markets, it is essential that individual commodities are studied not only in depth but within the broader context of economic influences. A commodity unit, which monitors market developments in a wide range of commodities, is well placed to provide the broader perspective in the study of commodity markets. This paper describes some of the specific functions of such a unit. Some of the methods used for price forecasting are described, and the results of price forecasts by different forecasting methods are compared.