Commodity Slump Goes From Bad to Worse Amid China, Greece
Source: Bloomberg
by Isaac Arnsdorf
July 7, 2015 6:00 PM EDT
Commodities are going from bad to worse.
Raw materials were already among the years worst-performing asset classes. Now theyre bearing the brunt of economic spasms from China to Greece.
Some markets looked fragile anyway, said Kevin Norrish, director of commodities research at Barclays Plc.
The past two days wiped 4.2 percent off the Bloomberg Commodities Index, which tracks 22 raw materials. It was the biggest such decline since September 2011. Heres how that breaks down and why:
Read more: http://www.bloomberg.com/news/articles/2015-07-07/commodity-slump-goes-from-bad-to-worse-amid-china-greece-spasms
Wellstone ruled
(34,661 posts)it just does not happen. Two months ago we seen corn still stored on the ground at major elevators in Nebraska and south eastern South Dakota,$3.50 corn when replacement cost is $3.97.End of story. Ouch!!!
LiberalLoner
(9,762 posts)Wellstone ruled
(34,661 posts)Commodities are being dumped in favor of Equities. In saying that,smells like the 1%ers are rotating their holdings,and the sell of in China is being used to smack us 401k and IRA ers in order to steal our shares at fire sale prices. Appears there are only 7 major players in the China Stock Market,and everyone else has zero business even thinking about investing in a Red Chinese Army ponzi scheme. Just heard a interview with the CEO of Shell saying the Oil price is being manipulated by the Brokers and there will be zero change in Gasoline Prices this summer. Remember this is the Guy who had Cheney blow up Iraq and we know how that is turning out. All about controlling the daily crude hitting the market and Iran is about to go big time in a few months. It's all about the money.
Yo_Mama
(8,303 posts)The rest of the world was not increasing demand like China - as China's demand slows, of course commodities will decline.
On average, of course. There can still be spot shortages, especially in agricultural commodities which are affected by weather.
Yo_Mama
(8,303 posts)Producer prices:
http://www.stats.gov.cn/enGliSH/PressRelease/201506/t20150609_1156703.html
And this is picking up speed - China publishes bimonthly updates:
http://www.stats.gov.cn/enGliSH/PressRelease/201507/t20150706_1206392.html
CPI is negative (nominal consumer sales less than real consumer sales):
http://www.stats.gov.cn/enGliSH/PressRelease/201506/t20150612_1158174.html