Commodities are moving upwards. Both supply chain fragmentation problems (globally) and climate change problems (e.g., prolonged droughts in Central and South America and Africa) have pushed commodity prices soaring.<\/p>\n
The increased prices observed in futures in basic commodities in the summer editions, have not yet passed to the consumer markets. These price increases will come to the consumer basket in the coming months, creating strong inflationary pressures.<\/p>\n
Unless policies to increase production are announced, or by increasing the availability of laboratory-made food (please read the analysis entitled “The Continuous Increase in Food Prices will cause mass production of Lab grown Agriculture”) (these companies that specialize in laboratory processed foods will sooner or later see their stock prices rise), then high demand with low levels of world production will cause further rise in commodity prices.<\/p>\n
Government authorities will have to intervene to curb these price increases, thereby sinking commodity prices. An example of government intervention to reduce prices is what China has done to the price of copper.<\/p>\n
As China quickly emerged from the Covid-19 pandemic in 2020 and its economy resumed rapid growth, demand for copper reached high levels.<\/p>\n
The Chinese authorities intervened to reduce prices, causing a drop in demand resulting in lower prices for copper. However, these actions can also be done in basic commodities.<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Commodities are moving upwards. Both supply chain fragmentation problems (globally) and climate change problems (e.g., prolonged droughts in Central and South America and Africa) have pushed commodity prices soaring. The increased prices observed in futures in basic commodities in the summer editions, have not yet passed to the consumer markets. These price increases will come … <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17,391,6],"tags":[503,199],"class_list":["post-884","post","type-post","status-publish","format-standard","hentry","category-financial-markets","category-market-analyses","category-publications","tag-commodirties","tag-copper"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t