Wednesday, October 8, 2008

Commodities Drop to Lowest Levels in Year or More

Commodities remain bullish as a number of them hit their lowest level in a little over a year, while some dropped to levels that haven't been seen for about three and a half years.

Copper, which other base metals usually mirror, fell to its lowest levels since March 2006, falling to $5,250 a ton. Oil also continued its plunge as it almost leveled at $86 a barrel, falling as low as $86.05 a barrel.

Other base metals didn't even fare as well, with aluminum, zinc and nickel declining to levels not seen in over three years.

After the interest rate cuts corn did rebound settling at $4.275 a bushel on the CBOT, a 10.5 cent or 2.52 percent gain.

With a number of central banks cutting interest rates Wednesday, officials were glad to see prices fall, as concern about inflation have also been rearing its head.

Now that demand for oil has been dropping, Opec is said to be considering an emergency meeting to decide if it wants to cut back on production, possibly meeting in November instead of the scheduled late December date.

Even with low price levels, the bull run for commodities isn't over, and price levels will start to move again as nations and businesses start spending again.

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