Commodities soar as war builds anxiety over supply shortages

Commodities extended their massive rally as Russia’s invasion of Ukraine continues to roil global markets and fuel fears of supply crunches.

Prices from crude and nickel to aluminum and wheat soared, as raw materials stage their most stunning weekly surge since 1974, during the days of the oil crisis.

Russia’s growing isolation is choking off a major source of energy, metals and crops, sparking fears of prolonged shortages and accelerating global inflation.

Traders, banks and shipowners are increasingly avoiding business with Russia because of the difficulty in securing payments, while shipping lines are shunning bookings from the region.

At: https://www.bloomberg.com/news/articles/2022-03-04/commodities-soar-as-russia-s-nuclear-plant-attack-raises-tension

A Russian wheat farmer handles his harvest last year, in happier days.

The interruption of shipments from the world's top wheat exporter (Russia), and the world's 6th-largest exporter (Ukraine) - which together account for over 30% of global wheat exports - has pushed commodity prices for the key grain to record highs.

Raw materials more broadly are on a tear this week - with aluminum up 13%; Brent crude oil, 15%; corn, 17%; and wheat, a whopping 41%.