Commodities Finish Best Quarter in Over 30 Years

Commodities wrapped up their best quarter in over 32 years in the aftermath pf Russia’s invasion of Ukraine supercharged a rally in markets from oil to wheat and nickel.

The commodities’ rally extends last year’s rebound, which was driven by higher consumer demand for goods and services when the economy reopened after the Covid-19 pandemic.

Commodity prices are hot right now. But the prices investors are paying in the open market for commodities like coffee, copper or corn can have little to do with the price customers pay at the store.

The war has disrupted traffic on goods coming out of the Black Sea, curtailing supply and sparking sharp price swings across financial markets. Nervous investors are weighing the fallout from the conflict along with higher interest rates from the Federal Reserve, which could threaten the economy’s post-pandemic recovery.

At the same time, a sharp run-up in commodities prices has some investors and economists worried about inflation jumping even higher.