Consumers can rejoice as commodity prices will drop soonNews | May 9, 2011 at 12:02 am
Now this is a perfect time to party as the happier days will come soon. For the last one year the price of commodities and that of garments have risen constantly as the oil price has spiked. Though oil continues to be a high priced commodity even today, the shoppers can breathe an air of relief as the price of food and garments will soon undercut. The latest news on drop in commodity price has been made by the precious metals gold and silver.
The price of corn is another commodity that dropped on the heels of the silver price. The corn price has dropped steadily as shown by the statistics of price chart. On Monday, the price of corn fell by 2.9 % and it dropped again by 1.5 % on Tuesday. Since corn is a major food for the cattle, the price of beef will soon drop. Other commodities that have dropped are wheat price and the soybean price, which had hit record high recently. As the cotton prices start sinking the clothes will be cheaper than before.
There are countless reasons for the sinking of commodity prices and the weather related causes seem to boost the crop production. The crop production in America is expected to be strong this time and the drought that plagues China for long has come to an end. Economists have also cited the drop in demand in the commodity based products as the there can be growth slowdown worldwide. The frail demand coming from Japan and Europe will make the manufacturing industry falter leading the manufactured commodities face the slowdown in prices.
However, the discretionary spending in the US can gear up the price of commodities but the possibility of this situation is less.