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What drives commodities

Source: Financial Times, 18th May 2011

Commodity prices have fallen - the CRB-Reuters index has dropped 7 per cent (in euro terms) since a February peak. Commodity prices have also risen - the CRB is still up 80 per cent (in euros) since the 2008 low. There should be an explanation for such big movements in the short and medium-term trends. There is: in fact there are at least three of them.



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