Archer Daniels Midland: World’s ‘Supermarket’ Offers Rich Dividend, Bullish Stock – Investing.com

Archer Daniels Midland: World’s ‘Supermarket’ Offers Rich Dividend, Bullish Stock – Investing.com

This article was written exclusively for Investing.com.

The bull market in commodities began with the March through May 2020 lows sparked by the worldwide pandemic. In 2008, the global financial crisis pushed raw material prices to multi-year lows. Meanwhile, central bank liquidity and government stimulus planted inflationary seeds that pushed commodity prices to multi-year, and in some cases, all-time highs by 2011-2012.

While the 2020 pandemic is a far different event than the 2008 crisis, central banks and governments used the same monetary and fiscal policy tools to stabilize the economy. The only difference: in 2020, the amounts of liquidity and stimulus were far higher than in 2008. Over the past year, prices have been explosive. The has been rising at the highest rate in decades. Grain and oilseed prices have risen to the highest level in over eight years in 2021, and the futures market trends remain bullish.