From gold to wheat to crude oil, it has been a wild ride for the commodities sector, with prices climbing higher in the wake of the Ukraine–Russia military conflict. A blend of tight supplies, interruption in global trade flows, lackluster production, and strengthening demand have contributed to the tremendous rally in a broad array of agricultural, energy, and metal commodities. The Invesco DB Commodity Index Tracking Fund, which tracks 14 commodities, including crude oil, gasoline, silver, wheat, and zinc, has risen 23 percent year-to-date. So far this year, the First Trust Global Tactical Commodity Strategy, which monitors cotton, coffee, corn, nickel, and natural gas, has rallied nearly 22 percent. Before the military conflict in Eastern Europe, many Wall Street firms and analysts predicted a commodities supercycle. The Ukraine–Russia war exacerbated an already tight segment of the international market, creating a situation whereby there are limited stocks or shortages of a …
‘We’re Out of Everything’: Commodity Prices Soar in Wake of Ukraine-Russia Conflict
March 3, 2022
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