Commodties- September Flashcards
1
Q
What are the main factors contributing to record high commodities prices?
Why will commodities continue to increase going forward?
A
Increased demand from economic recovery running into supply woes. The supply woes are chinas emission crackdown, record low reserves of gas in Europe( no wind), and heightened transportation costs.
Covid is in Asia is also increasing price of palm oil, coffee, and tin.
Record demand is overwhelming systems ability to supply, thus making market vulnerable to unexpected supply disruption or change in demand.
