Policymakers’ new enthusiasm for cutting budget deficits will slow growth across the advanced industrial economies, cutting the outlook for commodity consumption and prices over the next 2-3 years.
The Great Debate
Like Archbishop Thomas Cranmer before he was burned at the stake for heresy, the U.S. Commodity Futures Trading Commission (CFTC) seems about to make a dramatic recantation.
- Jorge Maia is head of Research and Information for Industrial Development Corporation of South Africa, established in 1940 to promote economic growth and industrial development. The opinions expressed are his own –
(John Kemp is a Reuters columnist. The opinions expressed are his own)
LONDON (Reuters) – As the economic outlook darkens, and speculative interest in commodities and other risk assets wanes, prices have fallen back from the upper part of the trading range set by fundamentals, and the market is now hunting for the floor set by supply-side cost structures and producer strategies.