- The prices of commodities have been surging in 2021, on the back of various factors like low inventories and high demand.
- A strengthening US dollar after the recent US Federal Reserve meeting is reversing the surge in commodities.
- Many ASX-listed resource space players have registered substantial gains in the year-to-date period.
However, recent developments in the global market have resulted in a sell-off in commodities. The primary factor that impacted the commodity prices is a firming US dollar. Other factors that have exacerbated the situation include China’s move to curb the exorbitant commodity prices by releasing industrial metals from its national reserves.