The raw material markets moved higher in the third quarter of 2020 after the global pandemic caused a deflationary spiral taking the prices of most assets lower in Q1 and a recovery in Q2. The commodity asset class consisting of 29 of the primary commodities that trade on US and UK exchanges moved 17.77% lower in Q1 than the level at the end of the year that ended on December 31, 2019. In Q2, it recovered by 13.75% and added another 12.04% in Q3 but was still 1.08% lower over the first nine months of this year. In 2019, the asset class gained 10.98%. In 2018, the asset class lost 6.82% of its value.

There were twenty double-digit percentage gainers in Q3, with five gaining over twenty-five percent for the three months. A total of nine markets were double-digit percentage gainers over the first nine months of this year. Five commodities markets posted double-digit percentage losses in Q3, but there were seven double-digit losers through the first three quarters of this year, which reflects the high level of volatility in markets. Winners outnumbered losers in the third quarter that ended on September 2020, by a margin of over three to one. Over the first nine months of this year, twenty-one commodities posted gains compared to eighteen products with prices below the level at the end of December 2019.

The U.S. dollar is typically a significant factor when it comes to commodity prices, as it tends to have an inverse value relationship with raw material prices. The dollar index posted a 3.52% loss in Q3 and was 2.22% lower for the year. The dollar index was 0.34% higher in 2019 after moving 4.26% higher in 2018, which followed a 10.23% decline in 2017. The dollar fell in Q2 and Q3 as