Global recession fears amplify as commodity prices fall

We have seen some big drops in crop prices this week and global recession fears are running high once again.

Here are some factors that could contribute to instability in the market:

With record-breaking gas prices, fewer people are out on the road, contributing to lower ethanol demand. As consumers tighten their pocketbooks, meat demand is also going down, creating a smaller need for livestock feed. The U.S. dollar is strengthening, which could limit our export sales. Lastly, dry summer weather is playing a big role in the conditions and prices of grain crops.

Related:

RMI Survey: rural bankers expecting recession, remain optimistic about ag sector

Gas prices continue to hit record highs; House to vote on bill that lowers food and fuel costs

Beef demand is still high despite rising meat prices, but where does production stand?

Economists: High commodity boom is transitory, not permanent






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