Laeken International: Now is the Best Time to Invest in Commodity Futures
Some international central banks worldwide have been printing their respective currencies since the start of 2007 subprime crisis which froze the global banking system. The immense amount of the recently printed currencies is leaking out into the international financial systems and will probably trigger a massive leap in the inflation rate globally which can also drive commodity futures prices.
- (1888PressRelease) July 05, 2011 - Some of the commodities are already demonstrating inflation signs worldwide. Various commodities have already made multi-year highs over the past few years. Recently, the prices of sugar futures alone has just hit a 30 year high as the world went from an excessive supply to a shortfall in the period of just a couple of years.
Other commodity products such as softs have also hit multi-year highs and despite of unfavorable weather in the area of Ivory Coast which vastly affects the world supply, the cocoa futures prices still hit a 30 year highs. Even the cotton futures prices hit an impressive two year price high despite the hot and dry weather in the US Delta region which is projected to influence the production and earlier this year, orange juice futures prices has just recorded a two year price highs. In addition, the coffee futures prices still hit a 12 year price high despite of the not-so-good weather conditions in Brazil that greatly affect the harvest.
As to the grains sector, the corn and wheat futures prices are continuously getting higher and higher. The wheat futures prices have just recently hit another two-year high even though the drought in Russia and the excessive moisture in Canada have potentially weakened the wheat harvests. On the other hand, the corn futures prices have also followed the mounting prices of wheat as it becomes the immediate substitute in feeding livestock.
On the base and precious metal sector, the gold futures prices are seen hitting all time highs as most traders and investors are in constant search for potential markets that can be a better safe place against economic instability and inflation. Also, gold has been considered a hedge against currency risk as some currencies have been undervalued in the previous years.
Laeken International affirmatively believes that once the newly printed currencies are sent out to consumers and businesses worldwide, a potential huge spike of inflation is expected. The inflation rate will be a hart target for central banks to fight since some of these governments acquired unhelpful assets to save the respective banking system and need to maintain interest rates low if they aspire to profit on these investments. Therefore, the best option is to invest in the commodity futures industry.
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