Commodity markets appear to be in turmoil as the US dollar index continues to rise and several factors are coming into play with grains, livestock, metals and other commodities. Tightening monetary policy, Europe's energy crisis, and China's COVID-19 lockdowns have all contributed to a risk aversion in the economy and have caused significant pressure in the commodities markets.
Shipping, in particular, has been hit hard due to the pandemic as global trade has been disrupted and consumer demand has dropped. Video by Jim Roemer illustrates the weather's impact on commodities and why March may be cold and snowy. Additionally, western sanctions on Russian oil, steel, gold, and other commodities haven’t resulted in the severe supply disruptions that many expected.
The US and G-7 partners announced sanctions Friday on 200 individuals and entities that are supporting Moscow's war efforts against Ukraine. This could further complicate the commodities markets and is something to watch in the coming days.