The Bloomberg Commodity Index rose 2.6% in January 2021. A decent start for the new year. Only three of the 16 major commodity futures markets shown here were down at month-end.
Source: Bloomberg.com
The top performer was corn, up 12%, on strong China demand. Unleaded gasoline rose 9% as the country opens. Coffee, cocoa and gold were the laggards, -4% to -2%, on few market signs.
The recovery in the grain belt was in the news lately, reporting the highest farm income and land prices in a decade. With luck, the long-term commodity bear cycle, of technology driven oversupply and sluggish demand, may soon break.
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