Oil traders and analysts scrutinizing U.S. inventory data for signs of a market recovery are being confronted by an odd situation: the math just doesn’t add up.
Automakers are anxious to get their assembly lines rolling again, especially since leaving factories idle is costing them billions of dollars by the week.
The cost of storage is exploding, in sharp contrast to the price of the commodities themselves, which are collapsing amid the chaos of the coronavirus.
As bad as things might seem right now, the situation is temporary — and retailers must be prepared for the flood of consumer demand that will be released by economic recovery.
Global warehouses are stuffed with frozen cuts of pork, wheels of cheese and bags of rice. But as the coronavirus snarls logistical operations, the question becomes: How does all that food actually get to people?