Food Commodities Are Rising, Investments in Minerals and Oil Are Falling

Commodities refer to strategic investments in goods and materials that we use in our daily lives. Many are geared towards the food sector, while others are aimed at the oil and mining industries. They are responsible for determining prices in dollars on a global scale and thus create a common trade. Since last Monday (01), food-related commodities have seen increases of nearly 1%, as is the case with wheat. Cocoa is among the most devalued items, losing up to 25% of its value during this time.

Despite most minerals and other points like fuels being in decline, reaching up to 0.98%, tin has a variation of nearly 47%. Diesel and gasoline, respectively, follow the downward trend of Oil. Despite the slight dip this week, oil is at its highest value in the last two years, costing more than R$ 477 per barrel at US$ 80. In March 2020, the average price of the barrel was falling by nearly 50% to US$ 22.

The mineral market has been facing production and distribution problems, especially in countries like China. The price increase in 2020 reached 5%. In Brazil, a bar of iron went from R$ 20 to R$ 60 due to external factors and difficulties with mining. The sector’s decline in October exceeded the respective decline of 2017 in the international market.

Market Beyond Commodities

Besides commodities, shares of major banks are also rising this week: Inter saw an increase of over 19% last Monday (01) after news broke that Nubank would be entering the stock market with an average price of US$ 11 per share. The aim of the institution is to raise over US$ 3 billion in IPOs to invest in international growth. Itaú, which released profit data for this quarter, grew over 2.3% compared to the same period last year, with a share value increase of 3.98%.

Bradesco reported a 3.47% increase, with a profit of R$ 6.469 billion in the quarter, referencing around 2.38% compared to the same period last year, in 2020. Despite being a traditional institution, the bank has been losing significant market share to other institutions that offer the possibility of a free and fully digital account.

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