Miller Magazine Issue: 145 January 2022

89 MARKET ANALYSIS MILLER / january 2022 The current commodity rally has been made possible mainly by the powerful infusion of cheap money into markets by central banks and governments of the world's leading economies in an at- tempt to reduce the negative effects of the pandemic. Price increases are not caused by structural changes in lead- ing economies, changes in technology or geopolitical processes. Everything is bad: the last time it was in 1929. There is no definition of what is supercycle but usually, it’s a long period during which prices for most commodities move mainly in one direction - first growth and then de- cline. In other words, supercycle is a time when the profit- ability of the commodity sectors is significantly higher than in previous years: Heavy industry is growing, basic sec- tors of the economy are thriving. So, the price-risen period could be recognized as a supercycle if it is: Giant supply tankersmanoeuvre slower than agile demand yachts Elena Faige Neroba Business Development Manager Maxigrain