Commodity prices predict global economic activity, aiding GDP and production forecasts.
Commodity prices can tell us a lot about how the global economy is doing. By looking at a wide range of commodity prices, we can figure out what's driving changes in the economy. Supply shocks, like shortages or surpluses, can be filtered out to focus on demand factors. The movement of commodity prices can help predict how well the global economy and industrial production will do in the future.