Many economists and market analysts are avid followers of the BALTIC DRY INDEX (BDI) as a forward looking mechanism that may shed a bit of light on the evolution of global economic activity and the price of commodities. The BDI has not performed well in the last few years of the economic crisis.
What sort of global demand and supply factors may account for the performance of this index? Should the price of oil be correlated with the price of other commodities? When may this correlation fail?