In the Weekly Newsletter edition of 22nd January 2021, I reported that an article in The Economist magazine asked if a new commodity supercycle is beginning. I thought it would be good to see how that claim is stacking up two months later.
The case for a commodity supercycle remains, with the sharp rise in the prices for the major commodities continuing over the past three months, although the most recent data suggests a bit of a slow-down. [There seems to be an anomalous result in February 2021 for ‘Non-food agricultural’ products, possibly caused by a short-term squeeze].
Prices for acrylic and polyester staple fibre have seen a very strong rising trend since the start of 2021. The rise in cotton prices has paused in recent weeks. The trend for wool prices continues to lag the rise for commodities and other fibres. Wool prices overall remain below the March 2020 levels.
Further details, including a chart showing the trends in selected commodity and fibre prices since the start of 2019, are included in this week’s edition of the NCWSBA Weekly Newsletter. Available to NCWSBA members.