Commodity Cycle

A commodity cycle is the repeating pattern of price ups and downs for raw materials like oil, metals, or agricultural products. 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 because they affect entire industries and economies—when oil prices spike, energy stocks often surge, and when copper prices crash, mining companies struggle. Understanding these cycles helps you spot which sectors might be heading up or down. For example, if steel prices are climbing after years of weakness, construction-related companies might be entering a profitable period.