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In this year’s first quarter, commodity prices soared on relentless inflation worsened by the Ukraine war and Western sanctions.
The S&P GSCI, which monitors prices across an array of commodities, shot up 29 percent over the past three months, its best quarter since 1990.
The U.S. oil price has gained 33 percent this year. Globally, corn prices are up 26 percent and wheat is 33 percent more expensive, reaching its highest price since 2010, The Wall Street Journal reported.
Aluminum, copper, nickel, palladium, and a range of other essential minerals have booked new record prices.
Freeport McMoran, a mining and energy powerhouse, has seen its share price rise ninefold since March 2020; so has Devon Energy.
The market cap of Marathon Oil and Halliburton, a major oilfield service provider, has soared sevenfold since the COVID War began.
However, commodities are inherently volatile and prices could tumble if Ukraine and Russia agree to a cease-fire, the WSJ noted.
“Commodities are hot right now but it’s hard to know when they run out of gas,” partner Louise Willmering at Crewe Advisors told the WSJ.
TREND FORECAST: Commodity prices will stay strong despite a slowdown in consumer spending as long as supply chain disruptions continue in many sectors and the Ukraine War and sanctions keep driving up a range of commodity prices much higher… as we reported, since the Russian invasion began on 24 February.
A slowdown in economic growth does not necessarily signal a slowdown of inflation… as evidenced by inflation and interest rates hitting new highs in impoverished and developing nations.