Posted on 02/07/2022 1:10:09 PM PST by blam
It’s probably not the endorsement Biden’s flailing administration wanted.
In a time when social networks have been swamped with photos of empty shelves from across the nation, Goldman’s head commodity strategist and one of the closest-followed analysts on Wall Street, said he’s never seen commodity markets pricing in the shortages they are right now.
“I’ve been doing this 30 years and I’ve never seen markets like this,” Currie told Bloomberg TV in an interview on Monday. “This is a molecule crisis. We’re out of everything, I don’t care if it’s oil, gas, coal, copper, aluminum, you name it we’re out of it.”
In a reversal of the event from April 2020, when WTI oil briefly hit a negative $40 per barrell as speculators paid others to take deliverable oil contracts off their hands as they had no storage for it, futures curves in several key markets are trading in super-backwardation – a structure that indicates traders are paying bumper premiums for immediate supply. The downward sloping shape in prices is generally taken to mean commodities are severely undersupplied.
The shortage of, well, everything has translated into record price of virtually all commodities: the Bloomberg Commodity Spot Index, which tracks 23 energy, metals and crop futures, has touched a record this year. That has been driven in part by surging oil prices, which have hit their highest level since 2014 and earlier today Brent rose as high as $94, assuring even more pain at the pump.
Separately, assuring even more pain for logistics, Bloomberg notes that diesel futures are in their strongest backwardation since 2008, excluding expiry days.
Additionally, all six of the main industrial metals traded on the London Metal Exchange moved into backwardation late last year, in a rare synchronized bout of tightness last seen in 2007.
Separately, Currie said that the world needs a global tax on carbon to reduce emissions, as ESG measures are a “blunt tool” that push up fuel prices too quickly, noting that for climate change, “local solutions don’t solve the global problem.
I have degrees in economics, never seen this before in 45 years. It’s one thing after another with no pattern.
For example, over the last 2 weeks there haven’t been any canned Pillsbry biscuits anywhere in Franklin TN. Just a few crescent roll tubes.
Strange and Ironic how things were just fine under Trump.....
Foxtrot
Juliet
Bravo
Well....he did have the Russians helping him.
Look to the future when the vaccines start killing off millions. There will be plenty for the rest of us.
In USSR after the wall came down it took years to have shelves full of goods. In 1994 in St. Petersburg, eggs were sold by the piece (not dozen) and wrapped in paper individually. The water from the tap had to be boiled because it was orange. You have been warned America.
Aaaand Atlas Shrugged.
When you stop people from makings things and you don’t have things. All over a flu. The biggest scam in human history.
My hubby sent me some pics from WM an hour ago. Freezer section of microwave meals - EMPTY. Dairy case (yogurt, cottage, etc.) 90% empty. He said its pretty nearly the same all throughout the grocery area. I asked if it was ever that bad before/during lock down? Nope! He had shopped at Wegmans yesterday, and they were low on a lot of things too.
It has NEVER been like this around here. Not before Superbowl, not with a blizzard coming, not at Thanksgiving or Christmas. He usually does the marketing, so he is pretty stunned by the bare shelves.
Dog can food wiped out today at Wal-Mart. Much of the cat food gone too.
Yep. And the milk section wiped out today also. Central NEO OH.
Ethics. morals, honesty and common sense down double digits to record lows...
A few months back I ordered some Horizon Organic WHOLE powdered milk. Used to be the only way to buy whole powdered milk was NIDO, by Hershey (I think). Targeted to Mexico, but sold in WM in the US. Then I guess the demand (prepping) made it look good to broader markets, and now Horizon offers it, and a few other companies who do organic freeze-dried stuff as well. I haven’t tried it, but hey, I don’t drink a lot of milk these days. However - I don’t like the idea of NOT HAVING milk in the event I want it.
When stuff hits the fan it’s sprayed everywhere.
Shortages of basic commodities portend continued inflation and pain at the retail level. And with metals prices soaring, what will that do to the green agenda. Energy is rising swiftly already , as the Euro energy crisis spreads. When the world is governed by imbeciles, the common people pay the price.
Got 10 lb packs of chicken for $5.67 last week. Make dog food with them. In 3 years I could be eating the dogs....
And be glad to get. But that is what the people wanted. At least they got rid of President Trump. I hope they enjoy starving to death. And remember that it was their own actions [votes] that caused it.
I went to three stores, today, two major chains (Walmart and Target) and our local chain.
All were well stocked....breads, dairy, meat markets.
The local chain was the most well stocked, overall.
Is Tyson still processing American raised chicken, in America?
AS far as I know, yes.
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