Dramatic price increases for nearly all commodities
May 5, 2022 16:06:42 GMT -5
Post by OmegaMan on May 5, 2022 16:06:42 GMT -5
JPMorgan estimating dramatic price increases for nearly all commodities as war, supply chain crisis continue
Thursday, May 05, 2022 by: JD Heyes
Tags: Biden presidency, Biden regime, chaos, Collapse, commodities, deception, Inflation, inflationary pressure, invasion, Joe Biden, logistics, price increase, price spikes, Russia, supply chain, TikTok influencers, Ukraine
This article may contain statements that reflect the opinion of the author
(Natural News) As prices for everything continue to rise, JPMorgan Chase is warning that the cost of commodities is set to skyrocket as well.
According to The Epoch Times, a note from the financial giant published on April 7 said that the cost of raw materials rose dramatically in March and will continue on that trajectory for the foreseeable future. In fact, the note said that prices could rise as much as 40 percent, thanks in large part to enduring Western sanctions on Russia — a major supplier of raw materials — following its invasion of Ukraine.
The outlet continued:
Russia is a main supplier for up to 10 percent of global energy production and about 20 percent of global wheat production.
The commodities affected include oil, which is already up 33 percent from the same month the previous year, while natural gas has gone up by 65 percent since the invasion roiled the markets.
Metals excluding gold, such as copper, are up by 7 percent from 2021, while wheat has surged upward by 33 percent.
The bank also announced it was continuing to review the long-term positions of commodities by global investors while comparing it to cash, stocks and bonds allocations.
“In dollar terms, the total open interest of commodity futures ex gold stands at around $1.4 trillion, which, although high by historical standards, looks much lower compared to the stock of equities, bonds, and cash in the world,” said the bank’s note.
JPMorgan added “that while investors’ implied commodity allocation of 0.72 percent is higher than the average seen after the Lehman Brothers crash, it is still well below the record highs of 2008 and 2011,” The Epoch Times reported.
“In the current juncture, where the need for inflation hedges is more elevated, it is conceivable to see longer-term commodity allocations eventually rising above 1 percent of total financial assets globally, surpassing the previous highs seen during 2008 or 2011,” said the note.
Continued at link
Thursday, May 05, 2022 by: JD Heyes
Tags: Biden presidency, Biden regime, chaos, Collapse, commodities, deception, Inflation, inflationary pressure, invasion, Joe Biden, logistics, price increase, price spikes, Russia, supply chain, TikTok influencers, Ukraine
This article may contain statements that reflect the opinion of the author
(Natural News) As prices for everything continue to rise, JPMorgan Chase is warning that the cost of commodities is set to skyrocket as well.
According to The Epoch Times, a note from the financial giant published on April 7 said that the cost of raw materials rose dramatically in March and will continue on that trajectory for the foreseeable future. In fact, the note said that prices could rise as much as 40 percent, thanks in large part to enduring Western sanctions on Russia — a major supplier of raw materials — following its invasion of Ukraine.
The outlet continued:
Russia is a main supplier for up to 10 percent of global energy production and about 20 percent of global wheat production.
The commodities affected include oil, which is already up 33 percent from the same month the previous year, while natural gas has gone up by 65 percent since the invasion roiled the markets.
Metals excluding gold, such as copper, are up by 7 percent from 2021, while wheat has surged upward by 33 percent.
The bank also announced it was continuing to review the long-term positions of commodities by global investors while comparing it to cash, stocks and bonds allocations.
“In dollar terms, the total open interest of commodity futures ex gold stands at around $1.4 trillion, which, although high by historical standards, looks much lower compared to the stock of equities, bonds, and cash in the world,” said the bank’s note.
JPMorgan added “that while investors’ implied commodity allocation of 0.72 percent is higher than the average seen after the Lehman Brothers crash, it is still well below the record highs of 2008 and 2011,” The Epoch Times reported.
“In the current juncture, where the need for inflation hedges is more elevated, it is conceivable to see longer-term commodity allocations eventually rising above 1 percent of total financial assets globally, surpassing the previous highs seen during 2008 or 2011,” said the note.
Continued at link