Several reports over the past few weeks point to a resurgence in commodity prices as the cycle reverses course and begins an extended winning streak.
Some observers say the commodity cycle is roughly 15 years in duration – half of that going up and half going down. We saw the big drop in potash and oil prices in November of 2014, more than six years ago, suggesting it is high time for a return to brighter days in Saskatchewan, an economy that is built on commodities.
Well, we had a couple more signals this month that underscore that suggestion. One comes in the quarterly report from Nutrien which indicated strong global demand led to greater than expected exports in the fall. Further, they reported they are sold out of potash for the North American market through April.
And the US-based financial firm JP Morgan said a few days ago we have entered a commodities super-cycle that will produce years-long gains.