| From the late 1990s until the financial crisis in 2008, most commodities experienced double-digit annual real (inflation- adjusted) price growth, a period known as the commodity “supercycle.” The cycle extended despite the fallout in the economy with the rapid increase in the liquidity and monetary easing called QE in the developed world led by the US and Japan. Now as the tide of liquidity turns, commodities need to return to demand-supply dynamics and prices should readjust to that.
It is more or less an established fact that the era of monetary easing is coming to an end and the US Fed is gradually heading towards winding up its bond purchases. And if the economy sustains, the Fed might even reverse some of its purchases...............................................Full Article: Source
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