I've been writing a lot over recent months about how the heralded Latin American economic growth is based largely on high commodity prices, and wondering about the long-term effects. So this article in the New York Times caught my eye:
Commodities prices fell sharply on Thursday, led by the steepest drop in oil prices since the fall of 2008.
Investors dumped commodities like silver and coffee and sugar that had seen a vast — and some said worrying — build up in prices within the last year on expectations of strong global demand.
“You’re in a situation where a lot of these markets have pushed to all-time highs and it’s at a point where it became very unstable and that’s where you started to topple,” said Dax L. Wedemeyer, a broker analyst with US Commodities, a brokerage firm West Des Moines, Iowa.
So we'll wait and see what the growth numbers look like later this year.