The entire spectrum of commodities, ranging from energy to metals and agricultural goods, has witnessed a spectacular upswing in prices.
The Goldman Sachs Commodity Index, which captures the price trends of all these sectors, has risen by 20 per cent this season, with October alone accounting for 10 per cent out of this upturn.
While the prices of base metals have touched heights not scaled in the last 13 years, cotton prices have hit a five-year high.
The UN Food and Agriculture Organisation (FAO) has reported firming up of global prices of most cereals and oil meals and has hinted at the continuation of this resilience.
What has driven this smart price recovery? Prima facie, it could be due to the global economic recovery and consequential demand surge.
However, the weakening dollar cannot be overlooked. Since commodity prices are normally quoted in dollars, even at the London Metal Exchange, the fall in the dollar vis-
