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Rising rates are hitting commodity trades
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The pressure on commodity traders is an example of how the end of the era of cheap money is changing the business world.
PHOTO: REUTERS
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Higher interest rates are forcing commodity traders to rethink some deals and push up prices, in the latest example of how a period of rapid central-bank hikes
The companies that buy, sell and transport the world’s natural resources are particularly vulnerable to rising rates, because they rely on banking lines to finance their trades – from shipping a cargo of wheat or oil to holding inventories of aluminium.
