October 19, 2008
YOU CAN'T CUT RATES FAST ENOUGH:
Commodities tumble on recession fears (Subodh Varma, 10/20/08, TNN)
As the dark clouds of an economic slowdown gather over the world, prices of most primary commodities are sliding worldwide. Only a few months ago, prices of many key commodities, like food grains, crude oil and metals had reached dizzy heights. Now, they are in free fall.
Wheat had touched $481.5 per metric tonne (pmt) in March, while rice zoomed to $772 pmt in May this year. These were all-time highs, causing riots to break out in over three dozen countries and a global uproar. At the end of the first week of October, wheat prices had tumbled by nearly two-thirds to $272 pmt, while rice prices nearly halved to $412 pmt, according to the latest data released by Food and Agriculture Organisation (FAO) of the United Nations. Other agricultural commodities too have seen a slump. Soybean prices have dropped from a peak of $586 pmt in July to $371 pmt and palm oil from $1249 pmt in March to $885 pmt.
According to the latest FAO estimates, the main reason behind this dramatic across-the-board decline is record harvests in most crops.
The Malthusians are always with us and always wrong. Posted by Orrin Judd at October 19, 2008 9:55 PM