The Globe and Mail reports in its Monday edition that the blistering run in resource prices has fizzled out over the past couple of weeks, raising doubts over whether a commodities supercycle is in the works.
The Globe's Tim Shufelt writes that the downturn has been widespread across precious metals, industrial metals, agricultural commodities and lumber, which has been an unlikely poster child of the commodity boom.
After hitting a record high of $1,711.20 (U.S.) per thousand board feet in early May, lumber futures have dropped by nearly 50 per cent.
Meanwhile, gold ended last week down by 6 per cent; copper futures are down by 13 per cent in the past month; and contracts tied to corn are down by 17 per cent since the start of June.
Other commodities, such as crude oil, have been curiously resilient. The Bank of Canada's commodity price index, which is made up of a variety of energy, metals, forestry and agricultural commodities, has risen a towering 168 per cent since April, 2020.
"What makes this 13-month rally in commodities particularly amazing is that it comes hard on the heels of the deepest global downturn in the postwar era," Doug Porter, chief economist at Bank of Montreal, said in a report.
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