AS oil touched $88 a barrel on Tuesday October 16th, the temptation was to seek an explanation in geopolitical events. Many cited a potential incursion by Turkish soldiers into northern Iraq. Some believed gold’s rise to a new 27-year high was driven by the same factor.
But the commodities market is being affected by a lot more than just events in the Middle East. Raw materials prices are seeing widespread gains. Talk of a “supercycle” is in the air. As of October 15th, copper, lead, soyabeans, wheat, cotton, coffee, cocoa and cattle feed were all showing double-digit percentage gains on the year....MORE