Here are two more charts to add to my commodity reflation recap post on Wednesday. The first chart is the Journal of Commerce index of 18 industrial commodities; the second chart is the textile subset of this same index. I think it's quite interesting that textile prices—hardly the stuff (cotton, burlap, and polyester) one might think would be the subject of commodity speculators—are at a new all-time high. This bolsters my view that the rally in commodity prices is a good indicator of global growth, and of growth that belies the cautious growth forecasts that I'm seeing from most sources. Accommodative monetary policies are also playing a role, but for now it would appear to be a secondary role.
Note: I've reindexed the values of both indices so their Nov. '01 values are equal to 100. I chose that date because that was when the great commodity price rally of the 2000s began.