Commodities in Longest Consecutive Drop Since November

With some commodites falling as much as 10 percent, the 5-day slide continues, as the slowing world economy could cut back the demand for a variety of commodities.

Leading the drop in price has been corn, sugar and crude oil. The Reuters-Jefferies CRB Commodity Index plunged by 7.4 percent over the week, ending the longest consecutive decline since the week ending November 30, 2007.

This had to come as the first hald of 2008, commodities rose at the CRB index rose by 29 percent. That's sure to end up lowering demand an numerous commodites like mentioned above, as well as gold, platinum, wheat, rice, gasoline and copper are straining to reach higher.

Demand for gasoline has already started falling some as people stay closer to home in the U.S.

Assuming commodities overall rise more, we're sure to see demand slow down, as consumers and businesses hold back on purchases and acquiring some of them.

``All of these commodities are starting to show signs that the big bull market is over, and the things that people have really made the most money with in the past seven years will start to substantially drop,'' said Michael Aronstein, president of Marketfield Asset Management in New York.
As a result of all this, a number of investors are rearraning their porfolios to reflect the changing realities. A lot of money has left gold and commodites and has been reinvested in equities over the last week.