Commodities Bulls Nurse Their Wounds But Fight’s Not Over Yet
- Raw-material prices have slipped from their recent highs
- Still reasons that copper, crops and oil could climb higher
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The commodities boom has taken a knock this month, and while there are many reasons to still bet on a so-called supercycle, it’s unlikely to be plain sailing.
Vast amounts of stimulus, economies reopening from the pandemic and strong Chinese demand have driven a surge in raw-material prices this year, some to record highs. Yet they’ve slumped in the past two weeks -- with some wiping out gains for the year -- on a more hawkish U.S. monetary policy tone, China’s bid to cool inflation pressures and better weather for crops.