Wheat, Oil and Palladium have all reached record highs in 2022 making them an exciting investment
Commodities are booming. Across the board from precious metals to grain to energy, commodities have been registering all time highs in 2022. Let’s take a look at wheat, oil and palladium which have registered impressive gains in the year 2022.
In early March, Wheat peaked at an all-time high of $1,350. The last time Wheat was above $1,000 was in February 2008. Wheat began trending upward amidst the Covid pandemic in September 2020 when it was trading between $500-600. This gradual upward trend over the last year and half brought Wheat to around $800 in November 2021, and it would hover there until the middle of February 2022.
In late February the price of Wheat shot up like a rocket. Within two weeks it had gained more than $500, or more than 60%. Though it has dropped slightly since its peak on March 7th, Wheat was shivering at $1,100 at the end of March.
Similar to Wheat, oil prices have also peaked recently. Oil prices rocketed in early March rising close to $130 per barrel. It’s hard to believe that only two years ago, the price of oil was almost nothing. For a short period of time, oil was at a negative price.
With the pandemic waning in late 2021, analysts’ forecasted the possibility of oil prices reaching more than $100 per barrel. With restrictions on movement being lifted and economies returning to normal, there would be an explosion of activity needing major amounts of oil, which would drive prices significantly higher. However, the Omicron wave stunted oil’s rise and now it is finally trading above $100.
Palladium is a precious metal and one of its main uses is in car engines where it helps reduce emissions of cars. Palladium was trading around $1,900 at the beginning of 2022 and at the end of March was hovering around $2,600. Like Wheat and Oil, Palladium also rose significantly in early March and peaked at more than $3,400.
Commodities are exciting
After a decade of underperforming, demand for commodities is rising. Tight supply and higher investment demand resulting from inflation have caused investors to turn to commodities for a safe investment. World events appear to indicate that prices for commodities will not be coming down anytime soon.