Theme Overview
Water scarcity is the silent constraint reshaping commodity supply. Agriculture consumes 70% of global freshwater, and declining aquifer levels in major growing regions (US High Plains, India's Punjab, North China Plain) threaten long-term grain production capacity. Mining operations require massive water inputs -- producing one tonne of copper requires approximately 70,000 liters of water. Chile's copper mines in the Atacama Desert face increasing water restrictions, potentially capping future production growth. The Colorado River crisis threatens food production in California's Central Valley, which produces over 50% of US fruits, vegetables, and nuts. Water scarcity acts as a structural supply constraint that supports commodity prices by limiting production capacity growth.