CORN - Will the supply shortages end in a demand floor or a bullwhip effect?
Risks of rising prices are intensifying across the economy as a growing number of companies warn that supply shortages and logjams will compel them to raise prices. In fact, tight inventories have seen prices surge for raw materials, ranging from semiconductors and steel to lumber (LB1:COM) and cotton (CT1:COM). Manufacturers are scrambling to replenish stockpiles to keep up with accelerating demand as eager shoppers take out their stimulus-filled wallets following a broad vaccine rollout.Thought bubble: As commodities and materials become more expensive, the bigger question at the table is whether faster inflation sticks around. Putting it in perspective, a sheet of 3/4" plywood at Home Depot is now selling for around $60 (depends on location), up from about $30 before the pandemic - that's an 100% increase. Investors and policymakers alike are hoping that the price hikes prove transitory, though it's still to early to predict the future, and Treasury
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Will the supply shortages end in a demand floor or a bullwhip effect?