Recent Trends in Commodities

The global increase in prices of commodities in 2008 was more increased by high demand from the likes of India and China and uncontrollable speculation in forward markets. This price increase was for every commodity from coal to corn. This become at its peak in the closing months of 2008 across the board. As a result, after years of record revenue farmers are expected to face a sharp drop in crop prices. Other commodities, such as steel, are also expected to tumble due to lower demand. It may be positive for manufacturing industries. These industries will experience a drop in some input costs, partly offsetting the decline in downstream demand.