Commodity prices are spiking

Pay attention to the signals the commodity market is sending

Commodity prices are surging this year. Futures for lean hogscorncrude oilgasoline and lumber have spiked in 2021, a sign thatinvestors see the economic rebound as having roots.

Futures contracts allow traders to lock in a price for a commodity and give insight into where they believe prices are headed. Lumber futures, for example, are up nearly 50% in 2021 which suggests investors believe there will be higher demand for its uses in construction and increased prices tied to inflation.

Quint Tatro, president of Joule Financial, says stock market investors need to pay attention to the signals the commodity market is sending.

https://www.cnbc.com/

 

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