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Commodity prices continue to rise, does this have any impact on the market?
A few days ago, according to news reports, the prices of bulk commodities continued to rise, and banks in the circulation field of coal, steel and non-ferrous metals in China rose at a higher speed than last year. So what is a commodity? According to the definition, commodities mainly refer to physical commodities that can be circulated in the market, rather than retail commodities, such as crude oil, steel, agricultural products and so on. As the epidemic in 2020 has hit the global industry, commodities are on the rise this year, both month-on-month and year-on-year. What impact may the price increase of these commodities have on the market? I think there are mainly the following points.

First of all, these commodities may continue to rise in the future. First of all, these goods will be in the future for a long time. Due to the epidemic in 2020, the global industry was affected and the economy declined, resulting in a sharp drop in commodity production capacity this year. According to the principle of supply and demand in the economic market, once the supply of commodities is in short supply, the prices of these commodities will rise, so the prices of these commodities have risen sharply this year precisely because the epidemic has not been completely controlled in the world, especially the economic powers with high commodity production such as the United States have not completely got rid of the nightmare of the epidemic. Therefore, the production capacity of bulk commodities is likely to be unable to rise further, so the price of bulk commodities is likely to continue to rise in the future, which is also proved by a survey provided by major domestic research institutions.

Second, the rise of bulk commodities is likely to lead to the price increase of many commodities in the retail industry in the future. Although bulk commodities do not appear in the retail industry, they still need factory procurement as raw materials for retail commodities. Therefore, once the price of raw materials rises, it will affect the price of retail commodities, so the price increase of bulk commodities is likely to make retail commodities.

Third, rising commodity prices may also lead to a certain degree of pressure on financial markets. Rising commodity prices may also lead to rising futures prices, thus increasing the pressure on financial markets.