After three years of weakness, commodity prices are finally showing some life.
The new upward move has been reflected in commodity indexes such as the Thomson Reuters/Jefferies CRB commodity index, which provides dynamic representation of broad trends in overall commodity prices.
The two big gainers are coffee and natural gas, which are benefiting from a drought in Brazil and an unusually cold winter, respectively. Apart from the big gains in the agricultural and energy sector, the broad majority of food commodities are also reaching new highs. Precious metals are also showing strength since the start of the year.
On the other hand, industrial metals are the only commodity sector that hasn’t turned higher.