funny how ...

Everyone assumes that just because the value of commodities goes up, that the profitability of commodity producers does as well. Not always the case when you take into account the rising costs of production in diesel, machinery costs (all the metals that have been used to make the stuff), cost of financing (rising interest rates), labour costs, royalty payments (bribes in foreign countries), currency movements etc etc. That is why there is a fundamental switch for more investors to actually go for the commodity itself as opposed to the producers, whose problems in producing you really don't care about.