JPMorgan predicts another 10 percent increase in commodities.
According to JPMorgan Chase & Co., the commodity may continue to provide strong returns to its investor due to tight supply and stocks. The institution predicted that price increases might reach 10 percent during the summer season in the northern hemisphere and around 5 percent towards the end of the year.
In its mid-year outlook report, JPMorgan expects volatility in the commodity market to continue. Estimating that oil prices may rise to $150 in the short term, JPMorgan predicts that a record $13 level can be reached in corn.
The report gave a buying recommendation for all commodities due to the current conditions. Also, JPMorgan stated that this situation would be permanent.
