With the surge in agricultural prices, metals and oil prices soaring well above $ 50 a barrel, JPMorgan Chase believes that the commodity market has begun a new supercycle of multi-year profits.
According to JPMorgan analysts led by Marko Kolanovic who quoted Bloomberg, long-term commodity boom seems likely as Wall Street is betting on strong economic recovery after the pandemic and hedging inflation.
The bank said prices could also jump as an "unintended consequence" of the fight against climate change, which threatens to restrict oil supplies while increasing demand for metals needed to build infrastructure for renewable energy, batteries and electric vehicles.
There have been four super cycles in the commodity market over the past 100 years. The last of them began in 1996, and its peak after 12 years of growth came in 2008.
The rise in prices in the commodity market is expected not only in JPMorgan Chase. Analysts at Goldman Sachs Group, Bank of America and Ospraie Management are also forecasting growth in commodity markets thanks to government stimulus programs to bolster the economy and mass vaccinations to combat coronavirus around the world.