UGL - Trade Issues Are Only The Tip Of A Volatile Iceberg For Markets

There is a Chinese curse which says, "May he live in interesting times." Given the current trade dispute between the United States and China, the commodities markets are under a spell because many of the raw materials are in the crosshairs of the wave of protectionism that escalated to a new level over recent days. Tariffs and subsidies distort prices, and 25% tariffs on Chinese goods coming into the US and retaliatory measures on US goods along with currency devaluation of the yuan are doing a number on many commodities markets.

Agricultural commodity prices have

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