May 13, 2011

THERE'S STILL TIME TO FLEECE TALK RADIO LISTENERS:

Is the inflation scare over?: The effects of this year's commodity spike should be behind us by this summer. (Colin Barr May 13, 2011, Fortune)

"With crude oil prices falling 10% in the past week and cereal prices in retreat for more than a month now, energy and food should eventually start to have a deflationary impact on the CPI," says Paul Ashworth of Capital Economics.

The selloff that took crude prices in New York below $100 is only the most visible sign of the shift away from commodities. Front-month corn futures have fallen 10% over the past month, thanks in part to a government forecast this month that good weather and increased planting will help grain stocks rebound from a 15-year low hit last year.

"I'm optimistic we can rebuild some stocks this year," says Sal Gilbertie, who runs the Teucrium Corn exchange traded fund that trades under the ticker CORN. "We had some weather shocks last year that sent the price way up, but I think we can expect to see a normal seasonal pattern this year."


Posted by at May 13, 2011 2:03 PM
  

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