| After performing remarkably well in the initial months of the year, the broad commodity market started to falter in the later part. This is primarily due to a slowdown in the world’s largest consumer of raw materials –China, soft economic data from key developing economies, stalling recovery in Europe despite the stimulus package, improving U.S. economy, robust grain harvest for most agricultural commodities and demand/supply imbalances for most industrial metals.
Additionally, strengthening dollar, continued bullishness in the stock market and increased appetite for riskier assets added to the woes. This is especially true as a rising U.S. currency makes dollar-denominated assets more expensive to foreign investors, thereby dulling the appeal for the commodities.......................................Full Article: Source
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