Prices of Raw Materials Drop

The IMF's report last September on expectations about the global economic situation indicated a slow recovery for the more advanced economies.

For Latin America the picture was different, with growth of 4.5% forecasted. "This projection shows a positive economic outlook and gives a sense of immunity to the financial and economic turmoil affecting most advanced economies.

Given the recent decline in prices of raw materials (commodities), this sense of immunity has become an alarm bell for slower economic growth, since a large part of the boom experienced in recent years has been attributed to the increase in prices of the main products exported by the region: commodities", reported Prensa.com

As an example, last Friday (7th October), the future of WTI ( oil price reference used in the region) closed at $81.75, compared with the $113 quoted in May 2011.

Source: Prensa.com

More on this topic

Agricultural Prices in the Coming Years

January 2011

FAO´s outlook for agricultural development during the decade 2010 - 2019 portends higher prices of products and agricultural commodities.

The average crop prices over the next ten years for commodities is projected to be higher than the levels of the past decade, before the 2007 – 2008 peak, both in real and nominal terms (adjusted for inflation).

Commodity prices fall

September 2008

There are many explanations for this: signs of intervention by the CFTC, expectations (or reality) of recession, massive liquidation of funds to neutral positions; it could be that none, or all of them, are valid.

For now it is best to list the components of commodities: soft, grains, energy and metals.

Agricultural Commodity Prices will be Maintained

January 2012

The European Commission (EC) predicts that for the next eight years the prices of agricultural commodities will remain high.

According to a report by the EC, global food demand, the development of the biofuel sector and the a drop in crop production are contributing factors.

Commodity prices, financial crisis, regional inflation

December 2008

Outlook Report December 2008 from the Executive Secretariat of the Central American Monetary Policy.

The disruption of prices in the international market for commodities: petroleum, steel, copper, and basic food, and especially, the recent problems with the US financial system and other countries and regions in the world that are affecting employment and other economic variables, are two of the situations that have significant implications for the region.