The property of commodities

Commodity prices have large impacts on the global market. Commodities are used widely as raw materials across many manufacture industries. Higher commodity prices led by an increase in demand for commodities send a signal to the market that the economy is expanding and people are consuming more. Moreover, some countries' economies heavily rely on commodity exports. Then the prices of commodities will have a multiplier effect on their economies. Some large economies will then impact the global economy. Therefore, the commodity prices will add multiplier effects on the global economy. The commodity market is no longer just about the relationship between supply and demand, it is rather about people's predictions about the future global economy performance.