Commodities rally a sign of recovery?

CPO rally: The impact of the recent rally has stronger implications for commodity-dependent economies such as Malaysia, which counts both crude oil and palm oil as key exports. – Reuters

THE current rally in commodities is one of the strongest indicators yet that prices have bottomed out.

While market fundamentals may still be somewhat uncertain, prices have begun moving up significantly since the start of this year. The S&P Goldman Sachs Commodity Index, widely used as the benchmark of commodity prices globally, has gained 6% this year after hitting a multi-year low in January.