commodity prices

Since the end of 2001, US terms of trade have deteriorated by an eighth, as commodity prices have soared and the currency devalued.

"People are paying attention to how much impact high commodity prices have had on companies, as well as liquidity issues. "

One of the side-benefits of past US slowdowns was that commodity prices would fall, acting as a tax cut for consumers.

High commodity prices have created something of a vicious circle by adding to the expense and difficulty of expanding output.

Flanagan says multiply those losses by today's commodity prices and you get an idea of how much money Shell is losing on just that one rig.

In an April report, the Bank of Canada said it expects nonenergy commodity prices to rise by about 30% over the next three years.

Economic data, and falling commodity prices as shown in the chart, suggest the world is in for a recession, probably quite a bad one.

THE question of why commodity prices have been rising must be broken down into several components.

The big mining companies all believe that high commodity prices will return, although no one is prepared to say when.

In particular, he said the challenges embodied in the sharp rise in energy and commodity prices must be faced squarely.

The recent spike in commodity prices has grabbed headlines and sparked wide-ranging debate about just how much higher prices can go.

If there was a worry, it was that emerging economies would grow too quickly, inflating commodity prices.

With the economy in a very weak state and commodity prices falling, inflation does not appear to be a problem now.

But it needs export markets to stay vibrant at a time when its import bill is at the mercy of commodity prices.

A strong currency helps contain inflation risks. It translates the surge in dollar commodity prices into a smaller rise in euro terms.

However it does seem that there is a link between high commodity prices and deforestation, with a lag of about a year (see chart).

And so it had seemed in recent months, as commodity prices continued to climb even as disaster struck property, shares and bonds.

"The investors realise that Rusal is an attractive play on rebounding commodity prices, " said one person close to the company.

Some, including Tata Motors, overextended themselves when commodity prices were high and credit was easy to come by.

Economists at HSBC say that the correlations between industrial output and commodity prices began to fall apart a few years ago.

"South Asia is going to be very vulnerable to high commodity prices, " Mr Ali said.

"Gold" opened in November, and comes during a year in which commodity prices of the precious metal reached an all time high.

A visible strengthening in commodity prices is also likely to put pressure on the Fed to slow down the money printer .

The blooming domestic demand tends to be stabilized , and the growth of commodity prices slows down .

Zhou said the high inflation is a result of excessive liquidity in the global market and rising international commodity prices.

Zoellick announced a new approach to help ensure that high energy and commodity prices translate into improvements in the lives of the poor.

After the biggest meltdown since the Great Depression, economic theory tells us that world commodity prices should not be this high.

Lower commodity prices will likely bring some relief to parts of the region, though there will likely be a time lag.

But if commodity prices were to ease, the current account deficit could deteriorate rapidly, leaving Brazil on the verge of a debt crisis.

Rising commodity prices are not the only worry. The labour market is weak, with continuing jobless claims at a cyclical high.

Gold has fallen to its lowest level in two years, while wider commodity prices have also declined.

When commodity prices reversed, they were stuck with a depreciating asset and had to run it down as quickly as possible.

A run-up in commodity prices had raised inflation fears, triggering talk about an exit from the Fed's support of historically low rates.

The collapse of Lehman Brothers and the banking system's near-death experience (plus a slide in commodity prices) changed all that.

Asian nations can comfort themselves that the surge in commodity prices at least reflects the strength of demand in their own economies.

To understand this, consider three important factors - agriculture production, commodity prices and capital inflows.

China's imports have ballooned this year, thanks to its prodigious stimulus spending and a rise in commodity prices.

The crash in world commodity prices has created acute financial pressures for which the Kremlin had not prepared.

But right now a lot of these commodity prices are bouncing around very low levels, so discerning a strong signal remains challenging.

This, then, has been a broad surge in commodity prices, albeit after more than two decades of, first, falling and then stagnant prices.

The weaker dollar in recent weeks has driven commodity prices higher and made stocks more attractive as well.

Commodity prices continued to plunge, as crude oil prices dropped to the lowest level since December, approaching $85 a barrel.

And if stock markets end up renewing their sharp slide, he said, current commodity prices may not seem so cheap.

If he is right, then the surge in many commodity prices over the last few years may carry a disturbing message for everyone.

In recent years, a boom in commodity prices has led to impressive levels of economic growth in many parts of the developing world.

Khartoum closed its border with its southern neighbor in March, cutting off trade and leading to a sharp rise in commodity prices.

But a greater threat is a reprise of the spring and summer of that year, when commodity prices soared.

Moreover, if inflation picks up in 2010, so will commodity prices, improving the creditworthiness of African governments.

More money, but did not increase the number of commodities will inevitably cause a single commodity prices rise, which is inflation.

Although still near historical highs, commodity prices have taken a dive of late, and with it the sector.

What explains this combination of a "credit crunch" in the US with soaring commodity prices and rising inflation across the globe?

Emerging markets cannot expect to be unaffected by this lower growth, particularly those that are dependent on exports or commodity prices.

Brazil had the benefit of selling into a strongly recovering world economy and rising commodity prices.

A particularly abundant crop in the U. S. could alleviate some of the supply pressures, sending commodity prices lower.

In the long run, commodity prices are governed but by one law , the economic law of demand and supply.

Five ministries on Tuesday reiterated a pledge to stabilize commodity prices by cracking down on illegal charges foisted on suppliers.

Oddly, while China's voracious demand boosted global growth prospects and commodity prices, stocks in Shanghai missed out on the 2010 rally.

They are also more likely to see inflationary implications from rising commodity prices.

Conventional wisdom had it that 2005 was the top of the copper market and that commodity prices would soon tumble.

First, rising commodity prices have increased the cost of soft-drinks' packaging as well as the drinks' ingredients.

In the long run, commodity prices are governed but by one law, the economic law of demand and su ly.

China's producer-price index, which can be a leading indicator for CPI, is affected by the movements of international commodity prices.

However, rising unemployment, inequality and a shocking basis of skyrocketing commodity prices are also important factors.

The norm was that prices of goods on the shelves lagged commodity prices by around six months.

Now, looking at inflation in terms of commodity prices, you get a different story.

Commodity prices seem to have peaked for now.

Until now, however, Glencore has rarely made public statements of its views on the direction of commodity prices and demand.

This breakdown in correlation is occurring at a time when most measures of global optimism remain high and commodity prices are rising.

The company said commodity prices were likely to remain weak and volatile for some time.

It remains surprisingly close to its all-time highs, even as commodity prices have fallen back.

We like owning commodity currencies as they should continue to be supported by rising commodity prices in anticipation of QE.

Weak commodity prices could push the region into running a large current-account deficit, just as private-capital inflows decline sharply.

Schafer also said that recent plunge in commodity prices did not impact coming CRP Decision.

In past cycles, the best guide to the behaviour of commodity prices has been the change in the rate of growth in the global economy.

Lower commodity prices helped for a while, and may help further if they encourage central banks to cut rates.

It is possible that falling commodity prices are signalling a rough patch ahead for the world economy.

A one -off jump in commodity prices is not inflation. Nor need such a jump cause inflation.

Now, like Heinz, which recently reported solid earnings, it's been able to increase profit margins as commodity prices fall.

I've looked to see what is the relationship between higher commodity prices of exports, and the growth of commodity-exporting countries.

This was largely due to plummeting energy and commodity prices, but will do nothing to dispel fears about potential deflation.

A report from the U. S. Federal Reserve underscored the strains U. S. producers have faced from soaring commodity prices.

Softer commodity prices allowed the bank the inflation wiggle-room to act.

But recent increases in commodity prices and food prices at the wholesale level suggest that the early characteristics are not setting in .

Commodity prices duly took a beating over the summer as investors became more concerned about global growth and moved into "risk off" mode.

Yet growth still proved elusive. It took a buoyant world economy and a surge in commodity prices to procure it.

As a result, sales in the preparation of the index, the general should be based commodity prices as a measure of the same factors.

Indeed, it is possible some commodity prices have yet to reach their cyclical peaks.

Since its original decision, commodity prices have soared, boosting mining valuations and undermining much of the rationale for the deal.

moreover , soaring commodity prices have had remarkably little impact on inflation.

High oil and commodity prices are contributing to inflation, which is now seen as a key concern in Thailand and throughout the region.

Imports were also dragged down by cheaper oil and commodity prices and weaker imports of materials and components used to make exports.

At the time of the announcement debt markets were frozen and commodity prices were depressed.

In 2010, the price of agricultural commodities has been rising, but retail prices for food do not increase in tandem with commodity prices.

Sure, the speculative froth has been blown off the top of commodity prices and mining companies, and money continues to exit the sector.

The methods for the collection of arbitration fees shall be submitted to the commodity prices administration department for approval.

While commodity prices have made gains on investor optimism on the global economy, it may be too early to predict a bull run.

On Friday Cazenove upgraded the entire European mining sector and said commodity prices had probably seen the worst.

Hughes says that's because with commodity prices at all-time highs, so is the cost of seed and fertilizer.

The mining giants do not deny that they have profited handsomely from high commodity prices but do dispute that figure.

Investors can buy the shares of producers, but underlying commodity prices often perform better, so ETFs should be considered, if available.

Procter & Gamble blamed higher commodity prices for crimping margins and said higher costs will lower annual earnings by about $1 billion.

Investors may have accurately assessed the earnings mix of both companies as well as discounting future moves in commodity prices.

With the global recovery fragile and unbalanced, higher commodity prices are the last thing the world needs right now.

growth, a surge in commodity prices, and against the head winds of a credit crunch.

Now, weaker prospects for global growth and the strengthening U. S. dollar could keep a lid on energy and commodity prices as well.

In 2007 it paid almost $40bn for Alcan, the aluminium company and expected high commodity prices to help it pay off the Alcan debt.

In this regard, the recent decline in commodity prices, as well as the increased stability of the dollar, has been encouraging.

'Commodity prices are off their peaks but those most important for Australia remain at very high levels, ' he said.

As oil and commodity prices surged during the first part of the year, private banks said clients were worried about inflation.

Yet many of those countries are beginning to suffer from their own financial crises or falling commodity prices.

That should help stabilise commodity prices, particularly if, as many hope, demand from China holds up courtesy of its government stimulus.

As saving rates rise in the U. S. , trade volumes fall on lower demand, expensive credit and weak commodity prices. The current U.

notification requirements : reduction of real estate, construction land to be piles, building on -line mapping and other commodity prices.

Emerging economies are suffering too, as commodity prices fall and capital flees faster than in those countries' own crises of a decade ago.

I feel that there is a pretty strong case for interpreting the recent surge in commodity prices as a monetary phenomenon.

A year ago sellers demanded escalation clauses in their contracts because of rising commodity prices.

As easy credit dried up and commodity prices plummeted, over-leveraged oligarchs were forced to turn to the government for bail-out loans.

At the same time, the long upsurge in commodity prices has swollen the coffers of many resource-rich nations.

Rising commodity prices and housing prices have exerted direct impact on the day-to-day life of ordinary Chinese people.

It did mention that the economic recovery was self-sustaining but that higher global commodity prices were a problem.

Its rapacious demand for commodities has been one of the main causes of the rise in commodity prices.

Banks usually need to be much more cautious about such lending as commodity prices fluctuate far more than property prices.

Commodity prices fell across the board, with oil sliding below $70 a barrel and copper falling to a three-week low.

Thanks to high commodity prices and global imbalances, sovereign wealth funds now control at least $2, 000bn in assets.

Commodity prices have fallen: oil is down nearly 60% from its peak and many crops and metals have done worse.

Commodity prices such as steel, which had fallen due to the global financial crisis, are rising again.

Commodity prices are denominated in dollars: as the US currency weakens against the euro, raw material prices move higher.

Given those fundamentals, the case for arguing that commodity prices have been driven to excess by speculators looks rather stronger.

It could be a boon for Treasurys if economic growth slows, knocking down commodity prices and reducing the risk of inflation.

Equities gained in Europe and other markets and commodity prices strengthened as well.

But there's a good chance that lower commodity prices will cause central banks planning on four interest-rate increases to stop at three.

The Fed also noted the recent rise in energy and commodity prices, but said it expected "these effects to be transitory" .

Booming commodity prices are a burden as well as an immense boon for big miners.

The second is to achieve an equitable balance between the stability of commodity prices and ensuring global energy and food security.

While commodity prices have robbed consumers of purchasing power, they entered the second quarter with a slightly upbeat outlook.

But what price gains did follow were the result of spiking energy and commodity prices.

Now that commodity prices have plunged, the inflation risk has dramatically receded across the rich world.

Yet in the face of soaring commodity prices , the costs associated with subsidising basic staples have become too prohibitive .

He adds, however, that fundamentals will ultimately drive the direction of commodity prices.

"We need to see commodity prices drop significantly in order to be more comfortable with the inflation outlook, " Mr Lai said.

The slowdown and financial distress has lowered commodity prices, though to a still relatively high level (see chart).

Exchanged around the world are flashing red today, commodity prices are tumbling, and the dollar is soaring as traders flee risk.

Criticizing the Federal Reserve's zero-interest-rate policy is the new national pastime, thanks to a surge in commodity prices.

One way that could happen is if the recovery in the U. S. is anemic, keeping a lid on demand and commodity prices.

Rising commodity prices exacerbate the problem, since they push up inflation and reduce the spending power of wages and salaries.

Right now, rising commodity prices are basically the result of global recovery.

After all, declines in fuel and commodity prices over the past two months are starting to work their way through the supply chain.

"The fact we're having higher commodity prices here will have an impact around the world on food prices, " Lapp said.

This is likely to be boosted by commodity exports after commodity prices surged at the start of this year.

'The bulk of the increase in commodity prices is a global phenomenon, ' Mr. Bernanke told lawmakers earlier this month.

NEW YORK (Reuters) - Speculators are likely the first to be blamed in any discussion of today's soaring commodity prices.

Australia, with a huge external deficit despite high commodity prices, may soon be worse than either.

In such a situation, commodity prices may see some support, particularly if more storm fears, such as the oncoming Hurricane Ike, hit home.

If emerging economies remain resistant to an American recession and commodity prices stay strong, America's exporting regions will benefit.

Over the past several weeks, oil prices have declined more than 10 per cent and commodity prices have softened as well.

It is a simple relationship: As Europe's woes fuel the dollar's rise against the euro, dollar-denominated commodity prices fall.

It is a direct play on recovery in demand for aluminum at a time when commodity prices are on the rise.

The main reason commodity prices have been so resilient is the changing composition of global output.

Commodity prices, too, will continue to feel the effect of the emerging economies' increased importance.

Higher commodity prices should be a cause for investor concern rather than celebration.

Many are facing inflationary pressures from higher commodity prices and accordingly do not want to cut interest rates in line with the Fed.

Japanese official called for a defence of the dollar to contain commodity prices.

Clearly, most investors have not seen higher commodity prices as inauspicious, merely as a symptom of robust global demand.

Soaring commodity prices and inadequate access to energy and food could mess up the transition.

Many countries have done this in the past decade to protect themselves against fluctuations in capital flows or commodity prices.

Acouthan believes stock markets and commodity prices, especially metals and energy, will continue to be under pressure.

Not enough attention has been paid to the fact that after their recent plunge, oil and commodity prices are creeping up again.

The rise in commodity prices is an early indicator of this improving sentiment.

'The only consistent source of inflation in Western economies has been commodity prices, ' says Mr. Jessop.

The mining giant BHP Billiton has announced record annual profits for the seventh consecutive year on the back of surging commodity prices .

China reported its first monthly trade deficit in six years in March, mainly due to surging import volumes and rising commodity prices.

Commodity prices -- particularly oil prices -- are depressed now due to the worldwide recession.

The gloomier sentiment surrounding manufacturing demand for raw materials helped depress commodity prices and related stocks.

With bonds and commodity prices also wobbling, will any of the emerging markets prove immune?

Lower oil and commodity prices ought to benefit China and India, by lowering import bills and assuaging worries about inflation.

But commodity prices can be notoriously volatile and China is anyway busy diversifying its sources of supply.

Since then, however, commodity prices have thudded back to earth as the world economy has slumped and China's red-hot growth has cooled off.

The merged firm brought together low-cost, easily expandable mines that would remain profitable even when commodity prices were low.

A recent report by JPMorgan also argues that soaring production costs are now a heavy influence on commodity prices.

The rise in oil and commodity prices has pushed up inflation in rich countries and acted like a tax on consumers.

It is also being associated with both the recent correction in commodity prices, and, for some analysts, the cyclical downturn to follow.

Low commodity prices will also continue to restrain economic growth in some of the poorest countries, particularly in Sub-Saharan Africa.

Commodity prices were already rising early in the year, in a manner that was likely to check growth somewhat.

and the "base effect" of some commodity prices being higher a year ago.

Moreover, it has relied heavily on surging commodity prices, especially for oil and gas (see article).

Tingyi said it acted "in alignment with the policy of the state for maintaining the stability of commodity prices" .

In a war-infested, credit bubbly decade, commodity prices have recouped all their declines over the past century.

On interest rates, commodity prices and currency movements, it's hard to avoid exposure to these fluctuations.

A reader asked me if I feared the correction in commodity prices.

The basic situation of each grain will push commodity prices, international chaos worse.

The numbers could be fodder for those on hyperinflation watch, particularly with commodity prices rising and the dollar fragile.

Will the recent surge in commodity prices prove to be a short-term bubble or long-lasting?

That could limit the next spike in commodity prices once the economy recovers.

Persistent relative strength in emerging economies, especially China, suggests that commodity prices will stay stable or firm.

Rising commodity prices are a permanent new feature of the new global economic landscape.

Emerging markets have suffered from falling commodity prices, global growth concerns and gnawing worries about inflation.

Most emerging currencies have gained this year due to huge inflows to financial markets and booming commodity prices.

"Over the medium term, commodity prices are projected to remain high by historical standards, " it said.

One potential area where slower Chinese growth would be make an impact is commodity prices.

The package may be less of a boon for global commodity prices than some hope.

A combination of high commodity prices, proactive governments, technological progress and melting ice will help bring these to market.

Will central banks treat high commodity prices as a blip, and leave real interest rates low, penalising savers?

Argentina's vigorous recovery from its financial collapse of 2001-02 will peter out in 2009, as commodity prices soften.

Despite strong commodity prices, inflation remains relatively stable in the region, with little risk of aggressive tightening.

Usually, stronger U. S. dollar translates into lower prices for commodities and those lower commodity prices filter through to stock prices.

WTO Senior Economist, Michael Finger, tells VOA the strength of the oil and commodity prices is another worrying factor.

Softer international commodity prices and easing demand pressure from advanced economies should embed this trend into next year.

Another surge in commodity prices would create dangers for nations facing inflationary challenges, including the Brics.

For more than five years that simple reasoning sustained the bulls' case for global growth, and, by extension, commodity prices.

As these risks delay central bank exit strategies, however, global liquidity could support commodity prices and global trade in bulk goods.

The strength of demand in emerging economies does not entirely explain the rise in commodity prices.

And the recent fall in commodity prices, although partly sparked by economic fears, should be a boon.

One year ago, the emerging concerns centered heavily on transportation costs, especially oil, and surging commodity prices.

Chinese consumption and production growth will continue to support adequate commodity prices and thus help these exporters.

Rising commodity prices were once taken as a positive sign that a protracted slump had been avoided.

Commodity prices, including oil and copper, tumbled on fears that struggling economies will mean less consumption of raw materials.

Rapidly rising commodity prices help cause high inflation in emerging economies and stagflation in advanced countries.

Plummeting commodity prices drove down shares of energy and materials companies.

However, early talks broke down as the financial crisis deepened and commodity prices collapsed.

Soaring commodity prices are pushing up consumer prices across the globe.

At the same time, oil and commodity prices have come off their highs as signs of a slowing global economy multiply.

As the world economy continues its recovery from the crisis, commodity prices will continue to rise again, with or without speculators.

Asian stocks suffered further sharp losses yesterday as resource shares came under pressure from sliding commodity prices.

Lower commodity prices boost the profits of intermediate-goods producers, leading to overinvestment and then a fall in their prices.

The drop in commodity prices hurt currencies from countries like Australia and Canada that are big raw-material producers.

A tighter labor market, along with higher commodity prices, would start to drive wages higher, generating broader inflationary pressures.

New SDR issues could be introduced in times of declines in private capital flows or large falls of global commodity prices.

Commodity prices, boosted by Chinese demand, rose with it.

When he left, BHP was riding high on the back of surging commodity prices driven by demand from China.

The U. S. economy has been hurt by high commodity prices and supply chain disruptions from Japan.

With commodity prices where they are. . . farmers are probably more motivated to switch out over to these other commodities.

Higher crude oil would add to the threat already posed by higher commodity prices, heaping new burdens onto struggling consumers.

Thanks to better economic management and the boom in commodity prices, several emerging economies have enviably strong public finances.

Due to rising global commodity prices, food inflation is higher than general inflation in most countries.

Government revenues have been bolstered in recent years by high commodity prices and rapid growth.

Global commodity prices have, in turn, been supercharged by demand from still-robust Asian economies, particularly China.

Citigroup's Ms. Browne recommends investors buy energy and agricultural stocks that benefit from higher commodity prices.

Do you think speculating on rising and maybe even falling commodity prices is unethical?

The financial crisis, collapsing stock markets and plunging commodity prices have hit companies in rich and poor countries alike.

Certainly, rising commodity prices create challenges for monetary policy everywhere.

The weak dollar has caused commodity prices to nudge up, a potential inflationary threat.

For the US and Europe, however, still struggling to build on a fragile recovery, a spike in commodity prices will be further unwelcome news.

Also, commodity prices are rising, and massive flows of capital attracted to Asia puts pressure on asset prices, especially housing.

Mihir Wohrah, told Reuters he saw "no change in the long-term secular view of generally higher commodity prices" despite the brutal selloff.

The bank estimated the inflation will ease back to 4. 2 percent in 2012 as commodity prices level off.

At Davos 2011, economist Nouriel "Dr. Doom" Roubini told CNN that rising commodity prices posed the greatest threat to global stability.

'Higher commodity prices will likely result in additional inflationary pressures, ' Parry said.

Commodity-driven growth does not generate many jobs; and commodity prices could fall.

The report argues that the real danger for regional inflation is an up-tick in Chinese output driving commodity prices up.

At some point, it may prove impossible to relieve the pressure from higher commodity prices, except by charging consumers more.