2020 commodities - Almost all markets above average price for the year

The global recession has not stopped many commodities from having a good year. There is not a bubble in commodities like financial assets. Commodity returns show strength in demand and the impact of some localized supply shocks. All commodity prices are above their 2020 averages. The only exception is the natural gas market which is seeing the effects of milder weather along with lower overall energy demand. 

The only sector that has stayed somewhat rangebound after the March shock is energy. Precious metals have gained on overall market uncertainty and higher inflation expectations. Industrial metals have done well given the strong rebound in China. Agriculture markets both in grains and tropicals have performed well. Food demand has maintained and some weather shocks have provided added lift. 

Any strength in 2021 global growth will allow for continued increase demand in all sectors. Given current prices do not reflect speculative excess, commodity markets offer investors good diversification and upside returns.