Commodity Cycle

A commodity cycle is the pattern of price ups and downs that raw materials—like oil, copper, or wheat—go through over time. Prices rise when demand is strong and supply is tight, then fall when demand weakens or too much supply floods the market. You'll hear about commodity cycles when reading about economic trends, because they affect everything from energy stocks to agriculture companies. They matter because they can signal whether the economy is heating up or cooling down. For example, if copper prices are climbing, it might suggest factories are ramping up production, which could be good news for industrial stocks.