For the last several years, we’ve seen some concerning trends in the commodities market.

During the pandemic, food shortages and supply chain disruptions caused significant strain on many American shoppers. And now the war between Russia and Ukraine has further levied stress on our global food supply.

 According to the Labor Department, U.S. food costs – both in grocery stores and restaurants – were up 10.4% year-over-year in June. That makes them the highest in over 40 years.

 It also found that food inflation accounted for nearly 1.4% of the 9.1% overall inflation rate in June. Thankfully though, we are starting to see a trend of declining costs when it comes to the commodities behind those foods, if only temporarily.

 The Wall Street Journal reports: 

 “Falling prices for commodities such as wheat or corn are set to slow consumer food price increases, easing pressure on a major driver of global inflation.

 “Futures markets point to continued price declines. Wheat futures prices are now roughly where they were before [February] 24, when Russia began its invasion of Ukraine. Corn prices are at their lowest level so far this year.”

 This softening of the commodities market is starting to ease prices on the consumer level too. Some places, that is. If you’re living in Columbia or Egypt, you’ve (allegedly) already seen swift declines in food prices.

 In America, unfortunately, commodities prices make up a smaller piece of the complete pie. Other cost factors like labor, shipping, packaging, advertising, and profit margins contribute to the overall price of food and groceries. So it may take a bit longer before we really feel the relief.

 Still, there are reasons to remain hopeful. Economists at JPMorgan (JPM), for one, are predicting global food inflation rates will decline up to 6% in Q4.

 If true, this could prove critical to emerging economies, where grocery bills make up a greater chunk of consumer spending. JPM further predicts that decreased food inflation could lower inflation by 1.5% globally and 2% in emerging markets.

 This would also ease pressures from central banks and could have an impact on higher interest rates.

 Of course, this decline in commodities is only one piece of a much more complicated economic puzzle. But with such a chaotic global economy, let’s celebrate what we can where we can.

More Non-REIT News to Know About 

 Speaking of JPMorgan, the American banking giant is entering new territory with a rather unexpected endeavor. It’s set its sights on the tourism industry and is putting the pieces in place to launch a full-service travel business.

 Travel has become so integral to the business of banks and credit card companies. So JPM decided to cut out the middlemen. It recently purchased a booking system, a restaurant review platform, and a lux travel agency. Plus, it’s building a new website and installing Chase Sapphire branded airport lounges throughout the country.

 With these new features, JPMorgan believes it could collect $15 billion in bookings in 2025. That would make it the third-largest travel agent in the country, behind Booking Holdings (BKNG) and Expedia (EXPE) – which manage more than $70 billion apiece.

 While JPMorgan won’t be the biggest name in this business, it does want to become the go-to for gold standard leisure.

 “More people are interested in being inspired right now, saying, ‘I want to have one of those social-media-type moments, so tell me where to go,’” said Jason Wynn, the head of the new travel unit.

 With so much information on their customers – including where they like to go and what they’re spending their money on – this new business model definitely makes sense for JPM. Again, it might be unexpected, but it makes sense.

 It also makes me wonder what markets the company looks to attack next. Will we see a JPM automobile company or perhaps a real estate endeavor?

 With $127 billion in annual revenue, the sky’s the limit.

The World According to REITs 

 In many ways, W.P. Carey (WPC) defines the blue-chip category. As one of the largest diversified net-lease real estate investment trusts (REITs) in the industry, this powerhouse pioneered the concept of pooled leases for individual investors.

 The 50-year-old company operates a portfolio of 1,357 properties with a 99.1% occupancy rate. Some of its biggest tenants include U-Haul (AMERCO), Hellweg, and Marriot Corporation (MAR).

 The other day, WPC extended its massive portfolio after merging with Corporate Property Associates 18. CPA:18 manages $2.15 billion in assets across two net-lease properties.

While it’s nowhere near the size of W.P. Carey, this new portfolio adds further diversity to its buyer. I’m talking about exposure to markets like student housing, banking, grocery stores, and energy.

Right now, WPC stock is on an upward trajectory, climbing six points in the last five days. This merger will certainly add value to an already incredible company. The only question is…

Is all of that already priced in?

Author’s Note: If you do determine this stock is right for you, make sure to purchase it at a smart entry point. Even the best of companies can burn you badly if you buy in at inflated prices.

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