Building a Commodities Analysis Multi-Agent Framework

Author(s): Yaksh Birla

Originally published on Towards AI.

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What was one of the best performing assets of 2024? It wasn’t Bitcoin, the NASDAQ, or even gold.

It was cocoa — the stuff chocolates are made of.

Cocoa futures reached record highs in 2024, with prices soaring to nearly $12,000 per metric ton by December, representing a staggering increase of over 180% since the beginning of the year.

Photo by Towfiqu barbhuiya on Unsplash

In comparison:

Bitcoin: +54% (January to November 2024, pre-Trump rally)S&P 500: +23%

In fact, many everyday commodities saw substantial gains this year and beat the S&P 500’s returns on aggregate:

Cocoa: +175%Eggs: +107%Coffee: +80%+Orange Juice: +65%

I won’t go into the reasons why each of these commodities performed well, but in general, commodities are known to be a powerful inflation hedge.

But here’s the real kicker:

According to a January 2024 Bloomberg MacroScope report, commodities account for only 1.7% of total portfolios relative to equities and bonds — significantly lower than the recommended 4–9% allocation for typical 60/40 portfolios.

Most retail… Read the full blog for free on Medium.

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